As energy consumption rises across the world, certain midstream projects face delays as gas turbine supply bottlenecks worsen. The natural gas sector has, for the most part, been seen as a reliable energy source that could prop up the industry as it sees demand rising across the globe. Manufacturers in the gas turbine sector have seen a substantial increase in orders, but have pointed out that supply chain issues have resulted in bottlenecks forming in the sector. A major contributing factor has been the rise in AI data centers in the United States.
A report has outlined the expansion and inevitable issues faced by the midstream gas sector
A recent report from Mitsubishi Power, a subsidiary of Mitsubishi, called “Gas Stampede Puts Spotlight on Turbine Supply Chain,” has outlined the issues faced by the international gas turbine suppliers.
The report notes that the midstream sector has faced delays due to gas turbine supply bottlenecks. The company has reported that the forecast for gas turbines in the US has nearly doubled within a year. A major contributor to the increase has been the unprecedented rise in the AI sector in the United States.
“A couple of years ago, we analyzed the market orders from the previous decade and observed a consistent market of approximately 7.5 to 8 gigawatts per year. Now Lawrence Berkeley National Lab predicts U.S. power demand from data centers could double or triple by 2028.” – Todd Brezler, senior vice president of digital transformation and marketing at Mitsubishi Power
The world’s largest gas turbine manufacturers are reporting production expansion for the next few years
The sharp increase in AI data centers in the US has resulted in an explosion in the demand for natural gas turbines in the United States. Mitsubishi Power, Siemens Energy, and GE Vernova, which are responsible for two-thirds of gas turbine capacity under construction across the world, have reported that each company plans to boost output by 25% to 35% annually starting in 2026.
Despite that positive forecast, bottlenecks and backlog have emerged. Siemens Energy reported a few months ago that its global order book had reached a record $158 billion. According to a report from the Financial Times, approximately 60% of Siemens’ 2025 gas turbine orders are directly tied to the AI data centers that are popping up across the United States.
While those orders are a sign of the increasing reliance being placed on the gas sector, supply chain issues and bottlenecks will slow down the adoption of the sector.
“A gas turbine by itself does not make up a power plant. You’ve got the steam turbine, the generators, the transformers, and the switchgear — and only so much skilled labor that can work on power plant equipment.” – Todd Brezler, senior vice president of digital transformation and marketing at Mitsubishi Power
As the nations of the world ramp up spending in the midstream sector, the bottleneck issues are becoming more evident as the sector tries to shift focus to the gas sector. The world’s leading AI companies, like Microsoft and Google, are leaning towards the gas sector to alleviate the rise in emissions due to the rise in AI data centers.
During a recent event, gas industry insiders predicted that the reliance on the sector will rise in the years to come
At the recent Energy Bar Association’s 2025 Energy Forum panel discussion, industry insiders noted the increase in the sector, as the call for more energy in the United States becomes too loud to ignore. The rise in energy demand could be met by the gas sector, or the increase in investments in the ADNOC energy sector could further strengthen the midstream sector if gas turbine bottlenecks continue to rise. Regardless of where the energy comes from, the sector will see companies racing to meet demand.
