Global Gas Turbine Orders Hit Record High as Power Demand Surges
Key Takeaways
- •Global gas turbine orders reached 38 GW in the second quarter, setting a record and marking strong quarterly and annual growth.
- •Siemens Energy, General Electric, and Mitsubishi Power captured most of the new orders among the major manufacturers.
- •The United States accounted for half of new turbine orders as data center growth lifted electricity demand.
- •BloombergNEF data showed lead times for new combined-cycle gas plants rose to five years in 2025, while costs increased by 49%.
- •Wood Mackenzie said global orders exceeded manufacturing capacity at the end of 2025 and projected turbine orders could peak in 2026.
Global orders for gas turbines reached a record high in the second quarter as demand for electricity generation continues to surge, according to JP Morgan.
New gas turbine orders in Q2 totaled 38 GW, representing a 29% increase from the first quarter and a 71% rise year-over-year, the bank said, as reported by Bloomberg.
Among the three major gas turbine manufacturers, Siemens Energy led with 12.5 GW in new Q2 orders. General Electric booked 11.3 GW, while Mitsubishi Power recorded 5.3 GW. These three companies collectively account for the overwhelming majority of global heavy-duty gas turbine production, meaning the current supply-demand imbalance is a structural challenge that new market entrants cannot quickly resolve.
The United States accounted for half of all new turbine orders, JP Morgan noted, as electricity demand climbs sharply driven by the rapid expansion of data centers. Power consumption growth is projected to average approximately 2% annually over the next decade, underscoring the urgent need for new generation capacity to support advancements in artificial intelligence and the reshoring of manufacturing.
This surge in demand has resulted in equipment shortages and extended delivery timelines, as gas turbine manufacturers typically do not maintain inventory of the machinery. According to BloombergNEF data, lead times for new combined-cycle gas power plants — which pair a gas turbine with a steam turbine to achieve significantly higher efficiency than single-cycle configurations — increased to five years in 2025, up from three and a half years in 2023, while costs surged by 49%.
Earlier this year, Wood Mackenzie projected that gas turbine prices would rise by 195% by 2027, reaching $600 per kilowatt, driven by a supply squeeze attributed to "increased electrification demand, especially around the expansion of data centers." In the same report, Wood Mackenzie stated that at the end of 2025, global gas turbine orders stood at 110 GW, while global manufacturing capacity was only between 60 and 70 GW.
"Turbine orders are expected to peak in 2026 as developers attempt to secure equipment for 63 GW of gas capacity additions from 2026 to 2030," the consultancy added.
The orders represent decades-long infrastructure commitments, as gas turbines typically operate for 30 years or more, locking in corresponding natural gas demand well into the middle of the century.
By Irina Slav for Oilprice.com
