Gas Turbine Shortage Threatens AI Development
The rapid growth of AI development has led to an unexpected bottleneck in the form of a 'gas turbine shortage.' These turbines are essential for powering data centers, which are critical infrastructure for processing and storing vast amounts of data. According to a BloombergNEF survey, nearly 100 data centers have already built or are building natural gas power plants on their premises.
The demand for gas turbines is skyrocketing due to the AI industry's increasing need for electricity. Consulting firm PwC predicts that the AI industry's natural gas consumption will more than quintuple by 2035. However, major manufacturers such as GE Vernova are struggling to keep up with this demand.
GE Vernova announced in July 2026 that it would take until 2031 for ordered turbines to arrive, citing a shortage of available units. Siemens Energy and Mitsubishi Heavy Industries also reported similar delivery times of over three years. The price of power generation equipment has doubled between 2023 and 2025, with some manufacturers supporting their financial situations through down payments on turbines.