by JIANG Xi

"Do you have turbines available? What's the delivery time? And how much do they cost?"

For TANG Jian, deputy general manager of Shanghai Electric Gas Turbine, such questions from overseas clients — particularly North American data center operators — have become increasingly common in recent months, as a global supply squeeze leaves leading manufacturers sold out for years and pushes parts of the gas turbine supply chain toward China.

"Our production schedule is already filled through 2027, with new orders extending into 2028," Tang told Jiemian News on the sidelines of the 2026 Turbine Technology Conference in Shanghai on April 16.

Shanghai Electric acquired a 40% stake in Ansaldo Energia in 2014 for 400 million euros, and later that year formed a joint venture, Shanghai Electric Gas Turbine, with the Italian firm.

The supply squeeze highlights a broader imbalance in the global market. Leading manufacturers including GE Vernova, Siemens Energy and Mitsubishi Heavy Industries have largely sold out capacity for the next several years, forcing some projects to subcontract manufacturing to Chinese firms. Industry estimates put global orders at about 110 GW by end-2025, while manufacturing capacity stands at only 60–70 GW. Consultancy Wood Mackenzie expects prices to rise to around $600 per kW by 2027, up 195% from 2019.

Chinese manufacturers are seeing a rise in overseas inquiries, with client visits picking up. Qingdao CAS GuoSheng Power Technology Co. Ltd has hosted multiple delegations from North America, Russia and Southeast Asia in recent months, while exhibitors at the Shanghai event reported strong interest from data center developers and power project operators across Central Asia and the Middle East. Companies such as Hangzhou Turbine Power Grou Co., Ltd. and Harbin Turbine Company Limited are also exploring overseas markets, though projects often face regulatory and intermediary constraints.

"Global gas turbine capacity is shifting toward China," TANG said, adding that demand from AI and data centers is driving the shift. Siemens Energy reported 102 turbine orders in a single quarter, a record high, with roughly a quarter tied to data center demand, and delivery schedules extending into 2029–2030. GE Vernova has sold out capacity through 2028.

China's gas turbine sector is still catching up with global leaders, particularly in larger, heavy-duty models long dominated by Western and Japanese firms. Domestic manufacturers historically relied on imported technology, often under joint venture arrangements that restricted exports. State-owned groups such as Shanghai Electric, Dongfang Electric Corporation and Harbin Electric Corporation have advanced localization under national programs.

In November 2025, Dongfang Electric Corporation exported a 50 MW-class F-class gas turbine to Kazakhstan, marking a milestone for Chinese-developed models entering the global market. While inquiries are rising from developed markets such as North America, actual project deliveries so far have been concentrated in emerging economies, where cost and reliability tend to outweigh peak efficiency requirements.

Despite this progress, performance gaps remain. Domestic turbines still lag leading international products in efficiency and operating hours. "At this stage, differences in efficiency are not a major constraint," said FANG Yu of Dongfang Electric, noting that clients in emerging markets often prioritize reliability and cost.

Certification and market access remain key hurdles. Technical standards and regulatory requirements vary widely across regions such as Europe, North America and Central Asia, and approval processes can take months or even over a year, limiting the ability of Chinese firms to respond quickly to demand.

For now, Chinese suppliers are making faster progress in components than in complete turbine exports. TANG said domestic parts makers are already receiving orders from global OEMs, including GE, Siemens and Mitsubishi. Precision casting specialists such as Anhui Yingliu Electromechanica Co., Ltd. and component manufacturers like Himile Mechanical Science & Technology Co., Ltd. have secured orders from overseas clients, while GE Vernova has been working to integrate Chinese suppliers into its global supply chain to cope with demand.

Upstream materials producers are also benefiting. A Xi'an-based high-temperature alloy supplier said orders have increased by more than 10 contracts year-on-year, adding roughly 200 million yuan in output. Stricter qualification standards imposed by global manufacturers mean some Chinese materials firms are still in the process of obtaining certification.

Industry participants caution that long-term success will depend on quality control and brand credibility. "A single failure in the supply chain can affect not just project delivery but the reputation of Chinese manufacturing as a whole," FANG said.

Overseas buyers, particularly in emerging markets, are increasingly willing to try Chinese products, though adoption is likely to be gradual. "Gas turbines are high-value assets, and clients will weigh risks carefully," said a representative from Qingdao Guosheng.

China still has limited experience exporting complete turbine systems, but its role in manufacturing is expanding rapidly as global supply tightens and demand rises, TANG said.