The race to power artificial intelligence (AI) is triggering a new kind of energy crisis, a global shortage of gas turbines. As data centres multiply across the world, electricity demand is exploding faster than power companies can keep up.
In the U.S. alone, over 114 gigawatts of new gas power plants are in development, double last year’s figure. But turbine manufacturers are struggling to meet demand. Delays now stretch up to eight years in Asia, driving up costs for countries like Vietnam and the Philippines.
Manufacturers are cautious. Two decades ago, they ramped up for an internet-driven power boom that never came, leading to heavy losses. “How do we manage what’s real and what’s not?” asked Bill Newsom, CEO of Mitsubishi Power Americas.
Yet caution could come at a cost. Bloomberg reports that as much as $400 billion in new gas-fired power projects could face delays or cancellation due to the turbine shortage. Even companies trying to scale up, like Mitsubishi Heavy Industries, face major hurdles. “It’s not so easy to ramp up,” said Joern Schmuecker, vice president at Siemens Energy. “The whole supply chain is struggling to keep pace.”
For now, the world’s growing appetite for AI may depend on how fast the power industry can catch up—and whether this new gold rush for electricity turns into another painful memory.
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