Major manufacturers' full-scale expansion still can't ease the emergency? How tight is the global gas turbine supply? This report tells you.

According to a recent report by consulting firm Wood Mackenzie, the gas turbine market is facing a severe imbalance driven by rising electrification demand—especially the expansion of data centers—which will cause product prices to keep soaring through 2027.

The report, titled “The U.S. Gas Turbine Market: Addressing Manufacturing Shortfalls and Demand Growth,” states that **as of the end of 2025, global gas turbine system orders have reached 110 gigawatts (GW), but global manufacturing capacity can supply only 60–70 GW per year.**

**This has pushed gas turbine prices to new highs, and the market price is expected to reach $600 per kilowatt by the end of 2027—up 195% from 2019.**

“Gas turbines account for 20%–30% of the cost of a combined-cycle project, and they make up a higher share in simple-cycle projects, so they are the biggest drivers of gas power plant costs,” Aurora Tenorio, a senior supply chain analyst at Wood Mackenzie, said. “This supply constraint, combined with delivery lead times of up to six years and orders already scheduled for 2027, has fundamentally shifted the market from project decision-making driven by fuel economics to project feasibility decisions driven by procurement strategy.”

Wood Mackenzie expects that gas turbine orders will hit a peak this year, as developers try to lock in equipment for 63 GW of new gas generation capacity added between 2026 and 2030.

**An unprecedented shift in demand driven by data centers**

**Data center expansion has become the dominant force reshaping the gas turbine market, representing a fundamental shift in customer composition, as AI workloads are pushing electricity demand to unprecedented levels.**

According to Wood Mackenzie’s forecast, between 2026 and 2031, power consumption from data centers will grow by 96%, with AI and cloud expansion becoming the fastest-growing sources of new load on the U.S. power grid.

Examples of this surge in demand include some major projects—such as the Portsmouth Powered Land project, announced by SB Energy in February 2026, a natural-gas power generation facility worth $33 billion with an installed capacity of 9.2 GW.

Even just the project’s initial phase of construction may require 24 to 30 heavy-duty gas turbines, highlighting the scale of capacity needed to meet the rapidly rising U.S. power demand.

**Big manufacturers expanding at full scale still can’t provide an immediate fix**

**At present, equipment manufacturers are investing heavily in an attempt to address supply constraints, but they still face significant challenges.**

GE Vernova is putting more than $160 million into increasing annual production of large gas turbines from about 50 units to 70–80 units by the end of 2026. Siemens Energy has shifted key facilities to 7*24 hour operations and announced a $1 billion U.S. investment plan, while Mitsubishi Heavy Industries plans to double its manufacturing capacity by 2028.

However, Tenorio said, “Despite the surge in product demand, the market is also hindered by a shortage of specialized labor, component bottlenecks in the manufacturing of hot-end parts, and ongoing pressure from trade-related costs, which will continue to limit improvements in output. All these factors, intertwined, will affect U.S. power investment that has been ongoing until the next decade.”

**Wood Mackenzie also specifically noted that hot-end parts manufacturing—especially the production of single-crystal blades—remains a key bottleneck for the industry, because only a small number of global suppliers can scale these precise processes.**

(Source: Caixin Global)