2025-11-24 01:46Summary 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.