Key facts
- Global gas turbine orders reached a record 38 GW in Q2.
- Gas turbine orders increased 29% from Q1 to Q2.
- Gas turbine orders increased 71% year-over-year in Q2.
- Data centers and AI expansion are driving gas turbine demand.
- Gas turbine lead times have extended to five years.
- A global diesel shortage is intensifying.
- Europe faces significant challenges with diesel supply.
- Diesel inventories have hit multi-decade lows.
- Refinery closures and geopolitical tensions impact diesel supply.
Global gas turbine orders experienced a record surge in the second quarter, reaching 38 GW. This represents a 29% increase from the first quarter and a substantial 71% rise compared to the same period last year. The primary drivers behind this unprecedented demand are the burgeoning power requirements of data centers and the rapid expansion of artificial intelligence technologies. Manufacturers of these turbines are grappling with significant challenges, including material shortages and escalating production costs. Consequently, lead times for new orders have extended to as long as five years.
In parallel, a global diesel shortage is intensifying, raising concerns as peak winter demand approaches. This crunch is attributed to a combination of rising demand and constrained supply, further complicated by ongoing geopolitical tensions and disruptions affecting refinery operations. Europe is confronting particularly acute challenges, stemming from refinery closures within the continent and intense competition for available U.S. diesel barrels. The situation is underscored by diesel inventories reaching multi-decade lows in several key regions, amplifying the supply crunch.