GE Vernova vs. American Electric Power: Which Power Stock Has the Edge?
GE Vernova and American Electric Power are both positioned to benefit from surging electricity demand, primarily driven by AI data centers and the expansion of the U.S. power grid. The article compares their stock performance, highlighting GE Vernova's stronger growth outlook and return on equity due to its role in providing grid modernization technologies and services, including over $5 billion in data-center-related electrification orders.
GE Vernova (GEV) and American Electric Power (AEP) are poised to capitalize on the substantial expansion and modernization of the U.S. power grid, driven largely by the escalating electricity demands of AI data centers and other energy-intensive industries. GEV operates as a key technology and equipment provider, offering solutions for high-voltage transmission, grid automation, and electrification, which help utilities upgrade infrastructure and integrate new power sources. Conversely, AEP functions as a major grid operator, boasting one of the largest transmission networks in the U.S. and actively investing in its expansion to support increased demand and enhance reliability.
GE Vernova recently underscored its strategic advantage with its CIGRE 2026 announcement, detailing integrated solutions for transmission, grid automation, energy storage, and electrification to assist utilities in boosting capacity. The company reported robust second-quarter 2026 results, with orders soaring 88% organically to $24.2 billion and its backlog reaching $176 billion. Notably, data-center-related Electrification orders exceeded $5 billion year-to-date, more than double the prior year's total, leading GEV to elevate its 2026 revenue and free cash flow projections.
American Electric Power, serving over 5.6 million customers across 11 states, benefits from a stable revenue base. The utility has observed significant increases in commercial load, largely attributed to the proliferation of new data processing facilities and AI data centers. AEP's commercial sales surged by 14.9% at vertically integrated utilities and 17.4% at transmission and distribution utilities in Q2 2026. The company anticipates continued growth, projecting incremental contracted load to reach 69 GW by 2030, up from 63 GW in Q1 2026, with data centers constituting 90% of this demand and Texas alone accounting for approximately 45 GW.
From an investment perspective, the article suggests GE Vernova holds an edge due to its more favorable 2026 earnings per share projection, superior return on equity (42.42% vs. AEP's 9.95%), and stronger stock price performance over the past six months. Both GEV and AEP currently hold a Zacks Rank #3 (Hold).