The world's AI hotspots are experiencing a surge in electricity demand, but the supply of gas turbines is struggling to keep up. This unexpected surge has left gas turbine manufacturers struggling to meet the demand, which has been decades in the making. The AI revolution is either slowing down or forcing the grid to rely more on coal. Natural gas, once seen as a bridge fuel, is now under scrutiny from activists who claim it's more harmful to the atmosphere than coal. As Big Tech expands its AI capabilities, electricity demand is skyrocketing, leaving some to turn to alternatives like repurposed jet fuel engines. Siemens Energy, GE Vernova, and Mitsubishi are all ramping up production, but it's not fast enough for the AI race. The wait time for new gas turbines is five years, and jet engines converted to gas turbines can't fully replace the need. This leaves AI data center operators with a choice: either slow down or find alternative electricity sources like solar, which would require major investments in batteries and backup generation. The most readily available baseload capacity besides natural gas is coal, which could mean a delay in plans to retire coal power plants. The AI race may have to slow down due to the physical laws of the world, and the momentum may not last as investors flock out if the supply constraints persist.
