Gas-Turbine Prices Surge, Crimping Efforts to Power Data Centers

Rising demand for electricity is driving up natural gas turbine prices, complicating power supply for data centers supporting artificial intelligence. Prices are projected to reach $600 per kilowatt by the end of next year, a 195% increase from 2019.

• Gas-turbine prices are projected to reach $600 per kilowatt by the end of next year, up 195% from 2019.
• Global orders for gas turbines reached 100 gigawatts by the end of 2025.
• Annual manufacturing capacity for gas turbines is between 60 gigawatts and 70 gigawatts.
• The surge in turbine prices is complicating power supply for data centers supporting artificial intelligence.
• The imbalance between demand and supply is creating a bottleneck in the energy infrastructure sector.