Gas Turbine Manufacturers Increase Capacity Amid High Demand and Backlog

Gas turbine manufacturers Mitsubishi Heavy Industries, GE Vernova, and Siemens Energy are expanding capacity in response to high demand and order backlogs. Mitsubishi plans to double its manufacturing capacity over two years, while GE Vernova is investing $41 million in its manufacturing and Siemens Energy is adding 61,000 sq ft to a facility. Despite these efforts, wait times for gas turbine delivery are expected to remain long due to strong demand from data center construction.

Gas turbine manufacturers are responding to surging demand and order backlogs by significantly expanding their production capacities. Mitsubishi Heavy Industries (MHI), GE Vernova, and Siemens Energy are among the companies leading this expansion, each with its own strategic initiatives to meet the growing need for gas turbines.

Mitsubishi Heavy Industries (MHI) is planning to double its gas turbine manufacturing capacity over the next two years. Eisaku Ito, MHI's CEO, stated that the company is prioritizing fulfilling growing turbine orders, which have been increasing rapidly due to demand from the artificial intelligence and data center markets [2]. MHI is focusing on enhancing its supply chain and manufacturing protocols to meet this demand efficiently.

GE Vernova is investing $41 million in its manufacturing facilities to boost production capacity. The company has seen a significant increase in orders, with its gas turbine backlog growing by more than $5 billion. GE Vernova's chief executive, Scott Strazik, reported that the company has received orders for 7 GW of gas turbine capacity in the first quarter of 2025 [2]. This investment aims to address the high demand for gas turbines, particularly from data centers.

Siemens Energy is also expanding its capacity, adding 61,000 square feet to one of its facilities. The company has seen a 17% year-over-year increase in new turbine orders, with at least a third of this new capacity attributed to data centers. Despite these efforts, wait times for gas turbine delivery are expected to remain long due to the strong demand from data center construction [2].

The increasing demand for gas turbines is driven by the need for more power generation to serve the artificial intelligence and data center markets. As these sectors continue to grow, the demand for reliable and efficient power generation solutions will likely remain high. These expansions by MHI, GE Vernova, and Siemens Energy are strategic moves to capitalize on this growing market and meet the evolving needs of their customers.

References:

[1] Mitsubishi Will Double Gas Turbine Production As Demand Grows [https://www.powermag.com/mitsubishi-will-double-gas-turbine-production-as-demand-grows/]

[2] Mitsubushi Heavy Industries (MHI) Plans to Double Gas Turbine Production Capacity [https://www.powermag.com/mitsubishi-will-double-gas-turbine-production-as-demand-grows/]