"The Financial Times says two-thirds of gas turbines for electricity generation come from three manufacturers: Japan's MHI, Germany's Siemens, and GE Vernova, the latter formed from a spin-out of General Electric's energy businesses. It quotes an MHI executive as saying: "There's so much demand right now that we can't meet it all," and that there is a lot of demand out of North America, meaning customers are now facing a three-year waiting list for delivery of turbine generators."
"A report by the Institute for Energy Economics and Financial Analysis (IEEFA) notes the effect this is having in Southeast Asian countries like Vietnam and the Philippines. Manufacturers are reporting wait times of up to five years for larger turbines, and are also starting to charge non-refundable reservation fees. One developer is said to have paid GE Vernova $25 million just to reserve a 2030 delivery slot."
Rapid growth in AI-driven compute is driving datacenter expansion and sharply increasing electricity demand, outpacing grid capacity in many regions. Operators are pursuing on-site generation because utilities cannot meet connection requests, raising demand for gas turbine generator sets. Two-thirds of such turbines are supplied by MHI, Siemens, and GE Vernova, and manufacturers report multi-year delivery backlogs and new non-refundable reservation fees. Larger turbines face wait times up to five years, with some developers paying tens of millions to secure future slots. The shortage affects markets from North America to Southeast Asia and is prompting alternative solutions like repurposed jet engines.
Read at Theregister
Unable to calculate read time
Collection
[
|
...
]