Gas turbine orders hit record quarter on data center boom

Global gas turbine orders reached a record in the April-to-June quarter, totaling approximately 38 gigawatts — up 29 percent from the first quarter and 71 percent from the same period a year earlier — as demand for electricity driven by data centers and electrification continues to accelerate, according to a JPMorgan Chase ↘ 0.73% analyst note published on Monday.bloomberg+2

US Dominates as Data Centers Drive Demand

The United States accounted for nearly half of all orders placed during the quarter, reflecting the country's position at the center of a buildout in AI-powered data centers that is reshaping electricity markets. Among manufacturers, Siemens Energy booked the most orders at about 12.5 gigawatts, followed by General Electric ↗ 0.18% at 11.3 gigawatts and Mitsubishi Power at 5.3 gigawatts.thehindubusinessline+2

The quarter caps a period of sustained growth. S&P Global reported in early August that gas turbine orders hit 51 gigawatts in all of 2025, with 18 gigawatts placed in the first quarter of 2026 alone. Siemens Energy separately disclosed a record order backlog of €162 billion in early August, driven largely by U.S. data center demand.energyintel+2

Rising Costs and Supply Constraints

The surge in orders is straining the supply chain. JPMorgan analysts, including Phil Buller, estimated that a combined-cycle gas turbine delivered in 2031 will cost three times what one cost last year. A BloombergNEF report earlier this year found that the cost of building a new combined-cycle plant rose 66 percent over two years, while construction timelines stretched 23 percent longer.techcrunch+2

Turbine shortages have emerged in parts of Southeast Asia, constraining planned capacity additions. Waitlists now extend into the early 2030s as manufacturers struggle to scale production of components that require specialized techniques.bloomberg+1

Broader Energy Shift

The International Energy Agency reported in July that global data center electricity consumption rose 17 percent in 2025, with AI-focused facilities growing even faster. Natural gas has emerged as the preferred bridge fuel for meeting this demand because it offers more stable generation than wind or solar and burns more cleanly than coal. Global Energy Monitor noted that 2026 could set a record for new gas power projects entering operation worldwide.iea+2