Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **gas power equipment industry** and its role in supporting the anticipated **USD 5 trillion AI investment boom** by 2030, particularly in the context of **gas turbine demand** driven by hyperscaler capital expenditure (capex) plans for AI datacentres [2][12][19]. Core Insights and Arguments - **Gas Turbine Demand Surge**: Gas turbine orders are projected to reach **decade-high levels in 2025**, with US orders expected to be **2.5 times the average from 2019-2024** [2][36]. - **Pricing Power and Margin Upcycle**: Strong demand from AI and other applications is leading to a margin upcycle for suppliers, supported by high pricing power on new gas power equipment [3][21]. - **Broadened Market Demand**: The demand for gas power generation equipment is expanding beyond heavy-duty turbines to include medium-duty turbines, industrial turbines, and fuel cells due to long lead times for new heavy-duty gas turbine orders [4][39]. - **Capacity Expansion**: Major suppliers are ramping up capacity by approximately **30%** each, with an estimated **90GW of supply capacity** expected by 2029 [4][46]. - **Investment Ratings**: Out of nine gas power supply chain players covered, **eight are rated as Buy**, with **GE Vernova rated Hold**. Siemens Energy is highlighted as a well-valued diversified supplier [5][90]. Important but Overlooked Content - **Bottlenecks and Supply Chain Risks**: Potential bottlenecks in the supply chain, particularly for components shared with aerospace suppliers, have not yet materialized significantly, indicating a more stable supply environment compared to previous cycles [51]. - **Emerging Business Models**: The **Bring-Your-Own-Power (BYOP)** model is gaining traction among datacentre developers to accelerate power delivery timelines, reflecting a shift in how power needs are met [56][57]. - **Global Datacentre Power Demand**: Global datacentre workload is expected to rise from **95GW in 2025 to 205GW by 2030**, with the US accounting for **55% of this growth** [67][69]. - **Natural Gas as a Key Resource**: Despite the rise of renewables, natural gas is expected to play a crucial role in meeting the growing demand for baseload power, particularly in the US where it is abundant and cost-effective [19][20][82]. Conclusion - The gas power equipment industry is poised for significant growth driven by the AI investment boom, with strong demand for gas turbines and a favorable pricing environment for suppliers. The emergence of new business models and the ongoing capacity expansion among major players further support a positive outlook for the sector.