Siemens Energy, one of the world’s top three gas turbine makers, earlier this month reported that its gas services business had seen a record quarter in orders, with a total of 102 new turbines in the backlog. As much as 40% of these new orders came from the United States, and another 35% came from Europe. The report came after Siemens announced plans to invest $1 billion in grid equipment production.
GE Vernova, another turbine major, will be spending $600 million on turbine manufacturing capacity expansion, with an annual target of up to 80 heavy-duty turbines, equal to some 20 GW in generation capacity…
The Wall Street Journal reported earlier this month that the conversion of jet engine turbines to power generation turbines was a growing business enjoying a lot of investor interest. One such converting company, FTAI Aviation, had seen its shares gain 42% since it announced this new business, which takes just 30-45 days to convert a Boeing 737 jet engine into a power generation gas turbine.
And they tell us the order backlog for gas turbines approaches three years. This is a major delay in opening new data centers.
Are they adding capacity? Will it be profitable or will demand fade w the AI bubble?
No wonder diesel generator companies like Caterpillar, Cummins, and Generac are doing well. Data centers can run on diesel while they wait for turbines or grid connections.
Colin Cox, a senior attorney at the Center for Biological Diversity, told Oil & Gas Watch that while the fuel cell proposal is an improvement, it is still a climate disaster. “Ten million tons per year is more than the greenhouse gas emissions from Albuquerque, Las Cruces, and Santa Fe — New Mexico’s three biggest cities — combined.
Lead times for large electrical transformers have also lengthened.
From pv magazine…
The scramble for electrical infrastructure is reaching a fever pitch as power developers and data center operators compete for limited factory production slots. A report from Reuters Events highlights that long transformer lead times are now dictating power project schedules across the country.
A combination of surging demand and raw material shortages has pushed lead times for high capacity units to as long as four years, according to analysts from PwC. This shortage is quickly becoming the main bottleneck for grid modernization and renewable energy deployment.
Data from Wood Mackenzie indicates that demand for generator step up transformers increased by 274% between 2019 and 2025.
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The voltage that comes out of a power generator is usually not the voltage that the customer needs. Transformers need to be in the system to step the voltage up and down, as needed.
It depends on the fuel source. Hydrogen and biogas don’t emit CO2, natural gas does. Even so, the emissions are far less than CCGT gas plants.
Point is, it’s 2026. The technology to provide clean power to data centers exists. The technology to cool data centers without relying on them guzzling up water resources exists. This technology costs more. Given how bad AI companies want these data centers, I’m sure they can be convinced to spend more.
