Why are European buyers paying reservation fees for gas turbines, and what does this indicate about current market conditions?

European buyers are paying reservation fees to secure a spot in production queues for gas turbines because demand is so high—driven by data centers needing power and countries requiring gas-fired plants to back up renewable-heavy grids—that manufacturers like Siemens Energy are largely booked through the end of the decade. This practice, which originated in the US, reflects intense competition for limited turbine capacity and long grid connection delays in Europe, prompting some data centers to build their own generation. Siemens Energy reports a conversion rate above 90% for these reservations, confirming their effectiveness in locking in future contracts.

How is Siemens Energy balancing its turbine order portfolio between data centers and traditional utility customers, and why?

Siemens Energy deliberately holds back manufacturing capacity from data-center customers—even those willing to pay more for faster delivery—to avoid overreliance on one demand source, instead prioritizing utilities and national power programs. Currently, data centers account for about 25% of its turbine demand, while conventional applications like utilities make up roughly 60%; the company aims to maintain this balance to ensure long-term revenue stability, as its recent ~87 gigawatt of orders is expected to generate around €35 billion in service business over more than 20 years.

AI Boom Has European Buyers Paying Extra to Secure Gas Turbines

Jun 11, 2026

European buyers pay reservation fees to secure gas turbines amid surging AI-driven data center demand, per Siemens Energy. Capacity remains booked through the decade as utilities balance urgent grid needs with long-term service revenue goals.

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AI Boom Has European Buyers Paying Extra to Secure Gas Turbines

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