In this Episode
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Host: Todd Snitchler, President and CEO, Electric Power Supply Association
Guest: Matt Neal, President, Siemens Energy North America
In this episode of Energy Solutions, EPSA President and CEO Todd Snitchler sits down with Matt Neal, President of Siemens Energy North America, to discuss how the power sector is responding to a surge in electricity demand driven by AI, data centers, electrification, and manufacturing growth.
Turbine orders are expected to peak in 2026 as developers secure equipment for more than 60 gigawatts of new gas capacity.
Matt shares insights from the front lines of equipment manufacturing, explaining why turbine supply is constrained, how long lead times are reshaping project development, and what Siemens Energy is doing to expand U.S. production capacity – including a major new billion-dollar investment to ramp up turbine manufacturing and expand its workforce.
He also discusses how data centers are changing the way power projects are built, the growing importance of co-location strategies, and why gas turbines remain essential to maintaining grid reliability.
Topics include:
- Why electricity demand growth today represents a “generational shift” for the power sector,
- How AI and data centers are reshaping load growth and infrastructure planning,
- Why turbine lead times now stretch close to 2030 and what’s driving the bottleneck,
- How supply chain, workforce, and manufacturing constraints are impacting grid expansion,
- The shift from traditional procurement to reservation-based equipment strategies,
- Why gas turbines remain essential for reliability and grid stability,
- The latest innovations and efficiency achievements,
- How hyperscale data centers are changing project development and co-location strategies,
- And what needs to happen across the industry to maintain reliability and affordability as demand accelerates.
Power Quote:
“We’re moving towards growth and the addition of gigawatts of new energy and the infrastructure to move it around to where it needs to be.”
MATT NEAL, PRESIDENT, SIEMENS ENERGY NORTH AMERICA
Key Takeaways
Turbine Availability Is a Major Constraint On New Generation: Lead times for gas turbines now extend close to 2030, making them one of the most significant bottlenecks in bringing new power online. As a result, developers are moving earlier in the process to secure equipment, often before projects are fully finalized.
“It’s really difficult to get a turbine before 2030.”
Demand Forecasting Is Critical but Unpredictable: While forecasts guide investment decisions, there is wide uncertainty about how much of today’s projected demand will ultimately materialize. Siemens Energy’s internal projections are often higher than public forecasts, in part because they see early-stage demand before it enters formal interconnection queues. Still, the industry recognizes that not all proposed projects will be built, making it essential to balance optimism with realism.
“I’m not saying that the long-term demand forecasts don’t matter. They definitely are indicators that we’re constantly paying attention to, but we’re always balancing that with how much can we realistically from a workforce and supply chain standpoint, build our capacity.”
Data Centers Are Changing How Projects Are Developed: The scale and speed of hyperscale data centers are pushing the industry toward new development models. Co-location and partnerships between developers and large customers are becoming more common as a way to accelerate timelines and manage risk.
“Our estimation is around even 25% of our demand in Q1 of 2026 was directly related to data center customers.”
Supply Chain Limitations Go Beyond Turbines: While turbine shortages are a key issue, other components—such as transformers and substation equipment—are also facing long lead times.
“It‘s not sustainable that we have four-to-five-year lead times on infrastructure equipment for a really long extended period of time… that’s why we’re increasing capacity.”
Gas Turbines Continue To Play a Central Role in Reliability: As a mature and dispatchable technology, gas turbines provide stability and support for the grid, particularly as more intermittent resources are added. Their ability to deliver reliable power quickly makes them a critical part of the current energy mix.
“Naturally, gas turbines bring more inertia to the system.”
2030 Is a Key Milestone for the Industry: Much of the current buildout is expected to come online by the end of the decade. By that point, the industry should have a clearer understanding of how demand—especially from AI—has evolved and whether current investments have aligned with actual needs.
“2030 is a very critical time in the energy industry. By that time, we will have a clearer picture of what’s the outcome of all these AI training centers that are built.”
Producer: Christina Nyquist, senior director, communications, EPSA
Associate Producer, Audio Editor: Anna Varnell, associate, communications, EPSA
Music Composed by: Let Me Hold That, Ltd.
