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2026-08-23 03:17 UTC → 2026-08-26 23:32 UTC ·
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Global gas Gas turbine supply shortage and demand imbalance AI data center power gap
Global demand for gas turbines has reached record levels, driven significantly by the expansion of artificial intelligence data centers and manufacturing relocations, particularly in the United States. Siemens Energy reported a gas services backlog of 69 GW, with sales in that division rising 62% year-over-year to €10 billion. Industry-wide, new orders for gas turbines increased by 71% in the second quarter of 2026 compared to the same period in 2025. This surge has created supply shortages and extended delivery lead times for combined-cycle gas power plants from three and a half years in 2023 to five years. The global gas turbine shortage is emerging intensifying as a major critical bottleneck for AI infrastructure expansion. artificial intelligence infrastructure. While global manufacturing capacity is estimated at 60 to 70 GW per year, total industry orders have surpassed 110 GW. This imbalance has caused GW, causing capital costs for combined-cycle power plants to roughly double. In the United States, the energy gap is particularly acute. Goldman Sachs projects U.S. data center power demand will rise from 31 GW in 2025 to approximately 66 GW by 2027. Morgan Stanley reports that between 2026 and 2028, U.S. data centers will require roughly 68 GW of new capacity, yet an estimated 38 GW of that demand remains uncovered by existing construction and contracted grid capacity. This shortfall is exacerbated by grid interconnection delays, which can take five to seven years in some regions, whereas hyperscale operators require capacity within two to three years. Consequently, tech firms are increasingly pursuing “behind-the-meter” solutions to bypass grid congestion. Natural gas turbines are identified as a potential provider for 15 to 20 GW of this capacity. Major manufacturers are facing unprecedented backlogs, with continue to face massive backlogs. GE Vernova reporting reported a gas power equipment backlog of 116 GW as of Q2 2026, with delivery slots extending as far out as to 2031. Approximately Siemens Energy noted that approximately 60% of recent Siemens Energy orders are linked to data center projects. projects, while Mitsubishi Heavy Industries also maintains a significant large-frame turbine backlog. Other infrastructure providers, such as Eaton and Vertiv, are also seeing increased demand for electrical components and data center-related services.