GE Vernova Expands Small Modular Reactor Pipeline as AI Energy Demand Drives Nuclear Interest

As artificial intelligence workloads drive historic increases in power demand for data infrastructure, public equity markets have directed heavy attention toward nuclear energy technology companies. High-profile small modular reactor (SMR) developers such as Oklo (NYSE: OKLO) and NuScale Power (NYSE: SMR) have drawn significant investor focus. However, industrial equipment maker GE Vernova (NYSE: GEV) is quietly advancing its own nuclear reactor designs to capture AI-driven utility demand, backed by billions in cash flow from its existing power generation businesses.

While GE Vernova is primarily known for its broad base of natural gas turbines and wind infrastructure, nuclear and gas services helped push its power service orders up 12% in the second quarter. Total company revenue for the quarter increased 22% year-over-year to $11.1 billion, yielding $5.5 billion in cash generated from operating activities. GE Vernova ended the quarter with $13.1 billion in cash and investments while returning $3.9 billion to shareholders via buybacks and dividends, establishing a large capital buffer to fund long-term reactor deployment.

Natural gas generation hardware continues to anchor GE Vernova's primary operations. The company expanded its gas power equipment backlog from 100 gigawatts to 116 gigawatts during the second quarter and expects that total to reach 125 gigawatts by the end of the year. In contrast, its wind turbine unit faced operational headwinds, reporting a 40% decline in orders and a 10% decrease in quarterly revenue, though GE Vernova retains the largest installed onshore wind fleet in the United States.

Despite headwinds in wind energy, the company is accelerating its nuclear strategy. Chief Executive Scott Strazik stated during the second-quarter earnings call that GE Vernova is advancing its BWRX-300 SMR design toward industrial scale. The company's flagship project under construction in Ontario is targeted for completion by the end of the decade and is positioned to become the Western world's first grid-scale SMR. Strazik also confirmed that GE Vernova secured two additional technology selections under early work agreements for U.S.-based SMR projects during the second quarter.

Expanding on those commercial commitments, GE Vernova Hitachi Nuclear Energy finalized an agreement in mid-August with Blue Energy to plan a 2.5-gigawatt hybrid gas and nuclear project in Texas, as reported by Yahoo Finance. Pending a final investment decision anticipated in 2027, the initial phase will use two GE Vernova 7HA.02 gas turbines to supply 1 gigawatt of electricity to a neighboring data center. Starting in 2032, the development plans to integrate up to five BWRX-300 SMRs, adding 1.5 gigawatts of nuclear capacity.

GE Vernova's financial baseline stands in marked contrast to pure-play nuclear entrants working through pre-commercial technology roadmaps. Oklo generated $1.2 million in second-quarter revenue—up from zero in both the previous quarter and the prior-year period—alongside a net loss of $48.4 million. The company holds approximately $2.5 billion in cash and short-term investments to support its ongoing development timetable.

Similarly, NuScale reported $75,000 in second-quarter revenue, down from $8 million during the same period last year, alongside a net loss of $47.5 million. NuScale retains $1.9 billion in liquidity to maintain its project runway. While pure-play reactor developers depend entirely on cash reserves to reach commercial viability, GE Vernova is using cash flow from its legacy energy operations to fund its small modular reactor division.