AI power shortage logic continues to evolve, gas turbine demand surges

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The industry logic of “the end of computing power is electricity” is continuing to play out, and the gas turbine industry is entering a high-prosperity cycle. Jereh Holdings has signed a 2.359 billion yuan order for gas turbine power generator sets, and the delivery schedules for gas turbine products from international giants such as Siemens Energy have been pushed out to 2030. The contradiction between strong industry orders and tight deliveries is becoming increasingly prominent.

Recently, a reporter from Shanghai Securities News conducted research and found that the large-scale construction of artificial intelligence data centers (AIDC) is driving up electricity demand. Gas turbines are expected to become a priority solution for main power supply in AIDC thanks to advantages such as fast installation, flexible and adjustable single-unit capacity scale, and strong deployment adaptability.

A surge in orders from both domestic and international companies

On the evening of March 30, Jereh Holdings announced that its wholly owned subsidiary GenSystems Power Solutions LLC signed a sales contract for gas turbine power generator sets with a customer in the United States, with a contract value of $341 million (approximately 2.359 billion yuan). This contract accounts for 17.66% of the company’s audited revenue for 2024. Notably, this contract is the fifth sales contract for gas turbine power generator sets that Jereh Holdings has signed with a U.S. customer since November 2025. The counterparty is the fourth customer that Jereh has recently cooperated with in the U.S.

Jereh Holdings stated that the signing of the contract further consolidates the company’s competitive advantages in the data center power supply sector, and marks that the customer base for the company’s gas turbine power generator set equipment is becoming more diversified. This is conducive to implementing the company’s strategic layout in the global data center and power supply fields.

“This is no longer just a normal fluctuation in energy demand—it is a historic opportunity to drive a paradigm shift in power infrastructure.” Faced with the huge power shortfall brought about by the explosive growth of AIDC, Yu Xuning, Deputy Chief Engineer of Jereh Min Electric Energy Group, a wholly owned subsidiary of Jereh Holdings, made this judgment.

In his view, the rigid demand of data centers for power sources with high reliability and fast deployment is creating an unprecedented “golden window” for the gas turbine and gas turbine power generator set markets. “The company has already achieved a global multi-location joint production model, and has strengthened strategic cooperation and diversified, multi-channel cooperation with key global suppliers to address the current challenges in capacity delivery, thereby meeting the increasingly growing power demand to the greatest extent,” Yu Xuning said.

“We can clearly feel that customer orders are increasing rapidly.” A relevant person in charge of Yingliu Co., Ltd. said in an interview with a reporter from Shanghai Securities News recently that the company has already formed bulk supply arrangements with major domestic and international gas turbine manufacturers such as Dongfang Electric, Shanghai Electric, Siemens Energy, General Electric, Baker Hughes, and Ansaldo.

When discussing the delivery period, the person in charge said: “Our orders have been continuously increasing since 2024, and many customers have reported that business/market optimism for the orders is expected to continue until after 2030.”

Yingliu’s main products include high-temperature alloy products and precision cast steel components, which are used in high-end equipment fields such as aerospace, gas turbines, and nuclear energy/nuclear power. According to its financial report, Yingliu achieved net profit of 294 million yuan in the first three quarters of 2025, a year-on-year increase of 29.59%.

In its investor relations activity record released in mid-March (the predecessor of Turbine Technology was “Hailianxun”), the company mentioned that its independently developed gas turbine business has achieved key breakthroughs. The fully independently developed 50MW-class HGT51F heavy-duty gas turbine signed its first commercial contract in January 2026. In the share-swap-and-merger transaction draft for Hangqi Turbine previously disclosed by Hailianxun, the company said that gas turbine application scenarios are expanding from traditional power sectors into diversified markets, and commercial applications in scenarios such as industrial parks and data centers are accelerating.

The latest financial data from overseas giants also confirms the industry’s high prosperity. Siemens Energy said in its fiscal first quarter of fiscal year 2026 (October to December 2025) report that, benefiting from increased demand for self-built power plants by large data centers, it secured 102 gas turbine orders, setting a new quarterly record. During the reporting period, the company’s order intake increased to 17.609 billion euros, and backlog reached 146 billion euros.

Christian Bruch, President and CEO of Siemens Energy, said during an earnings call: “The delivery time for our gas turbines has already been scheduled through 2029 and 2030.”

AIDC demand drives the supply-demand gap in the industry

Why are gas turbine orders piling up and delivery times staying tight?

Peng Peng, Secretary-General of the China New Energy Power Investment and Financing Alliance, said in an interview with a reporter from Shanghai Securities News: “Currently, gas turbine market demand is driven by two aspects: first, the high-speed growth of data centers is creating new demand; second, overseas countries’ power equipment is entering a period of centralized replacement and upgrade. With these two factors combined, they jointly drive the rapid development of the gas turbine industry.”

Zhou Ershuang, an analyst at Soochow Securities, said that currently, the demand side for gas turbines is releasing quickly, while the supply side is constrained by supply chain bottlenecks. Coupled with a long delivery cycle of 3 to 5 years, the supply-demand gap is clear. Based on calculations, in 2025 global gas turbine intended orders have exceeded 80GW, but actual deliverable production capacity is less than 50GW.

Under the continued industry logic that “the end of computing power is electricity,” industry insiders generally believe that gas turbines are expected to become a priority solution for main power supply in AIDC. “Gas turbines have advantages such as quick installation, flexible and adjustable single-unit capacity scale, and strong deployment adaptability. Compared with coal-fired power, they are also cleaner and lower-carbon in terms of emissions,” Peng Peng said.

Jereh Holdings also mentioned in its announcement the flexibility and deployment capability of gas turbine power generator sets. The company said that these units adopt standardized modular design, enabling rapid transportation, on-site assembly, and flexible capacity expansion. This effectively addresses practical challenges such as short project cycles and limited space.

Peng Peng said that, against the backdrop of coordinated development of renewable energy and energy storage in China, gas turbines can play a key “peak shaving and valley filling” role—rapidly filling the power shortfall during electricity peak periods and ensuring stable operation of the power grid.

At present, the high-end gas turbine market is still led by international companies such as General Electric and Siemens Energy. However, domestic manufacturers are steadily catching up and have already made significant progress. Yu Xuning said that in China, the country has achieved independent breakthroughs in small and medium-sized units of F-class and below, from core components to complete units, and has successfully exported to some overseas markets. It shows notable competitiveness in delivery speed and cost.

In Yu Xuning’s view, the path for Chinese-made gas turbines to go overseas will be one where “technological independence” and “integration into the industrial chain” advance together. “While consolidating emerging markets, we will gradually penetrate high-end applications, and ultimately become an indispensable important force in the global energy equipment landscape,” he said.

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