Prices for natural gas power turbines are set to nearly triple due to soaring demand from AI data centers, straining supply chains.
Natural gas power turbines, critical for AI data centers facing grid constraints, are seeing prices surge as demand outstrips supply. Nearly 100 data centers are either operating or building on-site gas turbine infrastructure to secure reliable power, bypassing utility limitations.
Consulting firm Wood Mackenzie projects turbine prices will nearly triple by the end of next year. The shift is driven by long-term cost efficiency and energy independence, despite higher upfront costs. PwC forecasts AI-related natural gas consumption will quintuple by 2035, with turbines accounting for much of the growth.
The trend reflects broader challenges in powering energy-intensive AI operations, as grid capacity lags behind rapid industry expansion. Gas turbines offer a scalable solution, but supply bottlenecks are pushing costs higher.