An off-grid power project gets a major proof of concept. What it means for GE Vernova

AI data centers powered by off-grid power plants took a major step forward this week, a good sign for GE Vernova as industry challenges pile up. Monday's announcement from Chevron that Microsoft has signed a long-term energy purchase agreement to fuel a massive new data center project couldn't have come at a better time. Microsoft will use energy from a planned Chevron power plant in West Texas, and will be largely powered by natural gas turbines from Club name GE Vernova. These turbines, which are essentially massive engines, are a top choice to create so-called behind-the-meter energy, which prevents stresses on local power grids. The push to build data centers across the country to meet the enormous demand to run AI workloads has not been met everywhere with open arms. Wells Fargo highlighted political resistance as a pillar of the bear case against GE Vernova. The analysts also cited increased turbine competition from rivals such as Mitsubishi and a slowdown in the artificial intelligence trade, which was evident in Tuesday's sharp slide in the tech-heavy Nasdaq . Shares of GE Vernova, which are still up 60% year to date, dropped more than 7% on the day. "The bears are getting louder," Wells Fargo wrote in a Tuesday note to clients. The analysts qualified that their base case on GE Vernova remains positive. "We expect GEV will continue to 'work' as long as the company continues its 'beat and raise' momentum," they said. …