NRG Pursues AI Power Solutions

Robert Gaudette began his tenure as CEO of NRG Energy in late April with plans to meet growing energy demands from artificial intelligence. The Houston-based company recently acquired 18 natural gas-fired power plants from LS Power for roughly $10 billion, doubling NRG’s generation capacity. NRG also partnered with GE Vernova and Kiewit to add 5.4 gigawatts of gas-fired turbines, enough to power four million homes, focused on serving data center campuses.

Beyond building new plants, NRG is investing in “virtual power plants” and demand-response programs. These programs incentivize customers to adjust energy usage—or return excess renewable energy—during peak times. NRG piloted a residential program giving away smart home devices to participants and already works with large industrial clients to optimize energy schedules.

While NRG’s stock rose roughly 60% in the last two years, recent earnings fell short of expectations due to weather events. The company completed 200 megawatts of virtual power plant capacity last year, exceeding its initial goal of 20 megawatts, and plans to add over one gigawatt of battery storage. NRG continues to explore locations for new AI-focused power complexes, with Texas offering advantages in permitting and regulation, but no specific site has been chosen.