economy
Due to the AI boom, European buyers are paying for spots in multi-year queues for gas turbines for electricity generation
European buyers are paying reservation fees to secure a place in the production queue for gas turbines – the equipment shortage is a consequence of the data center boom and mass electrification, Bloomberg writes.
TL;DR
- European buyers are paying reservation fees for gas turbines due to high demand from data centers and electrification.
- Siemens Energy CEO Christian Bruch confirmed the practice of reserving production slots, which started in the US and spread to Europe and the Middle East.
- Reservation fees are 10-15% of the turbine cost for approximately a six-month production slot, with production completion taking several years.
- The shortage affects countries increasing renewable energy who need gas stations as backup power.
- Data centers account for about 25% of Siemens Energy's turbine demand, while utilities and energy companies account for about 60%.