Major manufacturers like Siemens Energy and Mitsubishi Power are cautious about meeting demand for combined-cycle turbines, with wait times stretching to seven years. The competitive landscape is shifting, with some companies focusing on near-term profitability over long-term market share. The industry faces a dilemma: risk a price crash from oversupply or lose billions in delayed orders. Data center operators are deploying single-cycle gas turbines due to the shortage of combined-cycle turbines. Turbines are in high demand globally as gas replaces coal in developing countries. Gas turbines are crucial for dispatchable electricity needed by data centers. Turbine makers are hesitant to boost production capacity, wary of overestimating demand as seen in the past. The shortage of gas turbines could lead to delays or cancellations of new gas-fired generation capacity worth $400 billion. Mitsubishi Heavy Industries is trying to ramp up capacity, but challenges in the supply chain persist. The time factor will test the industry’s readiness for AI and the reality of demand.

Read more at Yahoo Finance: Why AI’s Power Grab Is Stalling at the Turbine