AI Data Center Demand Boosts Mitsubishi Heavy Industries' Turbine Orders to Record Highs

Mitsubishi Heavy Industries (MHI) is experiencing a record-high backlog for its gas turbines, largely fueled by the construction boom of artificial intelligence (AI) data centers in the United States. Takao Tsukui, Chairman and CEO of MHI America, stated that global demand for gas turbines is expected to remain flat or increase in 2026, surpassing 100 gigawatts for the full year. This robust demand is projected to continue through 2027.

MHI ranks among the top three global manufacturers of power generation gas turbines, alongside GE Vernova and Siemens Energy. While fossil fuel power generation was previously seen as a declining sector due to decarbonization efforts, the significant electricity needs of AI are reversing this trend. The company's order backlog is described as "abnormally large" and at an all-time high, with deliveries for some products stretching to 2029-2030. Contract prices have also seen an approximate 20% year-on-year increase.

Rival manufacturers are also benefiting. Kawasaki Heavy Industries reported a backlog of approximately five years for its medium-to-small sized turbines, according to Nikkei. Strong demand from data centers and hydrogen production has led to an increase in new customer inquiries, with manufacturers struggling to keep pace with orders.

To meet the escalating demand, MHI is accelerating capital investments. The company plans to double its production capacity for large gas turbines by fiscal year 2030, investing over 100 billion yen (approximately $635 million) in its manufacturing facilities in Japan and the United States. Goldman Sachs estimates that electricity demand from U.S. data centers will more than double by 2027 compared to 2025 levels.