U.S. Renewable Leader NextEra Energy to Develop Gas-Fired Power for AI
(Reuters) — The world's largest renewable power company, NextEra Energy, is partnering with GE Vernova to develop natural gas-fired power generation projects across the United States that will mainly feed AI data centers and other large electricity users, NextEra said on Friday.
NextEra's agreement with GE Vernova comes as natural gas-fired power becomes an increasingly popular electricity option for Big Tech's data centers, while federal support for renewable power is uncertain under the new Trump Administration.
"Given the current power demand environment, it is more important than ever to unleash all forms of electric generation," NextEra CEO John Ketchum said on a call with analysts about quarterly earnings.
Over the next four years, NextEra and GE Vernova plan to develop new power generation projects that could use a combination of natural gas power plants and renewable sources such as solar and battery storage.
The agreement is at an early stage, Ketchum said, and will require finding land, developing it, transporting gas to the sites and building power plants using turbines that can take years to deliver. That process may take until 2030, he said.
Solar projects can be developed in 18 months and onshore wind in 12 months, he said.
NextEra reported a decline in fourth-quarter profit, largely on weakness in its renewables segment.
The unit, NextEra Energy Resources (NEER), saw its project backlog increase in the quarter due to growing power demand from data centers amid an artificial intelligence boom, as well as homes and businesses using more electricity for heat and transportation.
A one-time loss of $845 million linked to investments in a subsidiary and higher operating expense weighed on the division's overall performance.
Shares of the Juno Beach, Florida-based company rose nearly 5%.
NextEra reported revenue of $5.39 billion for the quarter ended Dec. 31, missing analysts' average estimate of $7.07 billion, according to data compiled by LSEG.
While NEER recorded a 45.5% revenue decline, the company's regulated utilities business, Florida Power & Light, posted an 8% drop.
The company aims to restart operations at the Iowa plant as early as the end of 2028.
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