Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.In a corner of the American rustbelt, factory workers at GE\u2019s former power business are betting a revival driven by the AI revolution will survive the global trade war and supply chain havoc unleashed by Donald Trump.GE Vernova, formed a year ago after the conglomerate\u2019s break-up, is investing nearly $600mn to expand its former headquarters in Schenectady, in New York state, and other sites to make equipment for gas-fired power plants and to help overhaul the US\u2019s ageing electricity grid.The strategy aligns with the Trump administration\u2019s push to reshore manufacturing and break the US\u2019s reliance on overseas supply chains \u2014 especially China. It is also part of a broader pivot to natural gas in an economy where artificial intelligence data centres\u2019 are expected to need huge volumes of reliable, round-the-clock electricity \u2014 and the fossil fuels promoted by President Trump over renewables can supply it. These trends have supercharged GE Vernova\u2019s share price, which tripled to a high of $438 in January following its April 2024 spin-off, after repeated losses from its troubled wind energy business.\u00a0But analysts warn that the post-spin off euphoria is under threat, as the efficiency gains made by China\u2019s DeepSeek AI model leave investors wondering if the technology will need as much power as thought. GE Vernova\u2019s shares have fallen by 26 per cent since hitting a peak on January 23, when Trump unveiled his $500bn Stargate project for AI.\u201cIf the AI hype cycle comes down to earth\u2009.\u2009.\u2009.\u2009the stock is going to feel pressure,\u201d said Brett Castelli, an equity analyst at Morningstar Research.\u00a0In addition to doubts over power projections, Trump\u2019s attacks on renewable energy and his aggressive trade war have become potential problems for the company\u2019s wind business and supply chains.After two decades of stagnation, US electricity consumption has risen to record highs and is expected to grow another 16 per cent by 2029, driven by AI data centres and onshoring, according to think-tank Grid Strategies.That market dynamic has transformed GE Vernova\u2019s gas turbine business. Orders for turbines doubled last year and the company is fully booked into 2028. Its electrification business, which produces grid equipment, has seen orders rise almost 20 per cent year-over-year. \u201cWe\u2019re going into an investment supercycle,\u201d Scott Strazik, GE Vernova\u2019s chief executive, said in an interview last month.\u00a0But the demand outlook is fraught with risk given the uncertainties around AI. The Electric Power Research Institute, for example, projects data centres could consume as little as 4.6 per cent of US electricity by 2030, up from just 4 per cent. But it also says the share could reach nearly 10 per cent. Meanwhile, the Department of Energy suggests demand could triple by 2028.\u201cGE Vernova is a play on the electrification of the economy and rising electricity demand\u2009.\u2009.\u2009.\u2009The variable that has the widest range of outcomes is AI,\u201d said Castelli.\u00a0Its wind business has also hit some turbulence. Two years ago under the renewables-friendly Biden administration, the company planned to turn Schenectady into a growth centre for the industry. But it has been a lossmaking part of the business, under pressure from supply chain constraints, high interest rates, and a disastrous offshore wind blade collapse last summer due to a manufacturing deviation.\u00a0Now Trump\u2019s permitting freeze and effort to scrap the Inflation Reduction Act, Biden\u2019s signature climate law extending subsidies for wind developers, has left the entire offshore wind sector in peril.Just last week, the administration scrapped a huge $5bn offshore wind project from Equinor that was already in development. GE Vernova\u2019s orders for onshore and offshore wind turbines nearly halved last year, and the company announced it was no longer taking new offshore orders and downsizing the business. \u201cThe moment of growth inflection is very hard to call,\u201d Strazik told the FT.Trump\u2019s tariff war on countries following his April 2 \u201cliberation day\u201d announcement have also thrown the supply chain of US manufacturers into uncertainty. Strazik and other GE Vernova executives, however, dismissed concerns about the future, pointing to substantial power demand growth beyond the US and AI data centres, a continued global transition to lower carbon energy, and their investments in the US supply chain. \u201cThis is where it helps to be a US based company,\u201d Strazik said. \u201cWe\u2019ll continue to localise our businesses to the extent that the geopolitical supply chains are complicated.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.In a corner of the American rustbelt, factory workers at GE\u2019s former power business are betting a revival driven by the AI revolution will survive the<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-283153","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/283153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=283153"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/283153\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=283153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=283153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=283153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}