Key facts
- Global gas turbine orders reached a record 38 GW in Q2.
- Orders increased 29% from Q1 and 71% year-over-year.
- Siemens Energy, General Electric, and Mitsubishi Power were the top manufacturers.
- The US accounted for 50% of orders, driven by data center demand.
- Lead times for new gas power plants have extended to five years.
- Gas turbine prices are expected to surge by 195% by 2027.
Global orders for gas turbines have reached an all-time high in the second quarter, driven by a surge in power demand, particularly from the expansion of data centers and advancements in artificial intelligence. JP Morgan reported that new orders totaled 38 GW, a 29% increase from the first quarter and a significant 71% rise compared to the same period last year.
Siemens Energy secured the largest share of new orders with 12.5 GW, followed by General Electric with 11.3 GW, and Mitsubishi Power with 5.3 GW. The United States was the largest contributor, accounting for half of all new turbine orders, as the nation ramps up electricity generation capacity to support AI growth and manufacturing onshoring.
This unprecedented demand has led to considerable supply chain strain, resulting in shortages and extended wait times for gas turbine manufacturers. Data from BloombergNEF indicates that the lead time for new combined-cycle gas power plants has stretched to five years, up from three and a half years in 2023, with associated costs soaring by 49%.
Consultancy Wood Mackenzie forecasts that gas turbine prices could increase by 195% by 2027, reaching $600 per kilowatt due to this supply squeeze. The firm also noted that global manufacturing capacity for turbines is between 60 GW and 70 GW, while orders stood at 110 GW by the end of 2025. Orders are anticipated to peak in 2026 as developers rush to secure equipment for approximately 63 GW of new gas capacity additions planned between 2026 and 2030.