Gas Turbine Demand Soars to Record High as Data Centers Drive Growth

Global demand for gas turbines has hit a record high in the April-to-June quarter, according to JPMorgan Chase & Co. The bank's analysts reported that nearly 38 gigawatts of orders were placed during this period, marking a 29% increase from the first quarter and a 71% surge compared to the same period last year.

The US remains the dominant market for gas turbine sales, accounting for roughly half of all orders. This growth in demand is largely driven by the expansion of data centers and electrification efforts, which favor natural gas due to its cleaner burn rate and more stable electricity output compared to wind or solar power.

However, this increased demand has led to shortages in some regions, including Southeast Asia, as a scarcity of turbines hinders the delivery of planned capacity additions. As a result, costs are rising, with analysts predicting that a combined-cycle gas turbine delivered in 2031 will be three times more expensive than one delivered last year.