teaming up
NRG Energy forms joint venture to build power plants for ERCOT and AI-driven demand
Houston-based power provider NRG Energy Inc. has formed a joint venture with two other companies to meet escalating demand for electricity to fuel the rise of data centers and the evolution of generative AI.
NRG’s partners in the joint venture are GE Vernova, a provider of renewable energy equipment and services, and TIC – The Industrial Co., a subsidiary of construction and engineering company Kiewit.
“The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation,” Robert Gaudette, head of NRG Business and Wholesale Operations, said in a news release. “Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs.”
Initially, the joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants, which uses a combination of natural gas and steam turbines that produce additional electricity from natural gas waste. Electricity from these projects will be produced for power grids operated by the Electric Reliability Council of Texas (ERCOT) and PJM Interconnection. The projects are scheduled to come online from 2029 through 2032.
The joint venture says the model it’s developing for these four projects is “replicable and scalable,” with the potential for expansion across the U.S.
The company is also developing a new 721-megawatt natural gas combined-cycle unit at its Cedar Bayou plant in Baytown, Texas. Read more here.