Energy infrastructure demand shifts toward coal site reuse and steam turbines

Rising electricity demand from data centers, manufacturing, and electrification is outpacing new generation and transmission capacity. To address this, industry experts suggest repurposing retiring coal plant sites. These locations offer significant advantages, including existing interconnection, transmission infrastructure, water access, and a trained workforce, which can bypass the decade-long wait times often required for new transmission projects.

Simultaneously, a shortage in large-frame gas turbine manufacturing is driving developers toward steam turbines as a faster alternative. Major manufacturers like GE Vernova and Mitsubishi Heavy Industries face massive backlogs, with some delivery slots extending to 2029 or 2030. In response, companies like Babcock & Wilcox are securing orders for steam turbines to power U.S. data centers.

Amid this surge in demand, Siemens Energy is reportedly exploring the sale of a majority stake in its steam turbine and compressor business to private equity buyers, a deal that could exceed €10 billion. This potential ownership change occurs as Siemens Energy remains a dominant player in the market, having booked more orders in 2025 than its next two competitors combined.