Data Center Growth Strains Gas Turbine Supply as Prices Surge Through 2027

Rapid growth in electrification—driven largely by expanding data centers and AI workloads—is placing intense pressure on the U.S. gas turbine market, according to a new Wood Mackenzie report. Global turbine orders reached roughly 110 gigawatts by the end of 2025, far exceeding annual manufacturing capacity of 60–70 gigawatts, creating a severe supply imbalance. As a result, turbine prices are expected to surge to $600 per kilowatt by the end of 2027, nearly tripling since 2019. With turbines accounting for a major share of gas‑plant costs and order books effectively sold out through 2027, project decision‑making has shifted from fuel economics to procurement strategy. Data centers have become the dominant source of new demand, with U.S. electricity consumption from data centers forecast to nearly double between 2026 and 2031, exemplified by massive proposed developments requiring dozens of turbines. While manufacturers such as GE Vernova, Siemens Energy, and Mitsubishi Heavy Industries are investing heavily to expand production, persistent bottlenecks—including specialized labor shortages and limited hot‑section component manufacturing—are expected to constrain supply and influence power‑generation investments well into the next decade.

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