Siemens, GE Vernova Increase U.S. Investment to Meet Gas Turbine, Power Demand

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Siemens and GE Vernova are both planning U.S. investment to meet demand for gas turbines as well as grid solutions.

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Siemens' Planned U.S. Investment

Siemens Energy AG recently announced it finalized a plan to invest $1 billion to ramp up manufacturing of gas turbines and power-grid solutions in the U.S. This comes after GE Vernova late last month announced plans to invest about $600 million in the U.S. over the next two years for similar output.

The investment program will include several brownfield expansions, increasing transformer production and servicing plus strengthening the manufacturing of large gas turbines, Siemens said in a February 3 press release.

Some components include:

• increasing manufacturing for large power transformers and resuming gas turbine manufacturing in Charlotte, North Carolina
• producing gas turbine parts in Winston-Salem, North Carolina
• expanding a facility in Tampa, Florida, to manufacture more blades and vanes (critical parts in the gas-turbine supply chain)
• expanding production of copper and insulation electrical components for generators in Fort Payne, Alabama
• upgrading a plant in Painted Post, New York, to increase production of compressor equipment.

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Siemens also said it plans to construct a new high-voltage switchgear plant in Mississippi.

Last fiscal year, nearly 29% of the company's global order volume went to the U.S.

"The country is rapidly expanding data centers, artificial intelligence infrastructure and next generation industrial electrification," the company said. "Meeting this growth requires the accelerated deployment of modern, resilient grid infrastructure and a substantial increase in power generation capacity."

GE Vernova Also Aims to Meet the Moment

GE Vernova also plans to invest in gas-turbine and grid-solution manufacturing in the U.S. and recently reported a major backlog of gas-turbine orders.

One day after reporting its fourth-quarter and full-year 2025 earnings on January 28, the company announced plans to invest nearly $600 million in the U.S.--marking the first part of a $9 billion global capital investment and research and development (R&D) investment plan through 2028.

Almost half of the investment will support its plan to deliver up to 80 heavy-duty gas turbines per year, including:

• about $160 million to expand production at its plant in Greenville, South Carolina
• about $50 million to expand its plant in Schenectady, New York
• about $25 million to expand capacity at its plant in Bangor, Maine

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In reporting the latest financial results, GE Vernova said it saw orders for its gas-power equipment jump for both the fourth quarter and full-year 2025. For the fourth quarter, "orders of $11.7 billion increased +77% organically, led by Gas Power equipment tripling year-over-year due to higher volume and pricing, with 41 heavy-duty units, including 15 HA turbines, and 18 aeroderivative units"; full-year 2025 orders of $32.8 billion "increased +52% organically, led by Gas Power with robust equipment demand and growth in services."

In the related conference call, Chief Executive Officer Scott Strazik said the company signed a total of 24 gigawatts (GW) of new contracts in the fourth quarter alone. Fifty-nine gas turbine orders booked in the fourth quarter were up 74% from 34 orders year-over-year.

In all, GE Vernova has 83 GW of contracted gas turbines, "primarily due to strong U.S. demand."

That does not include a recent agreement between the company and Xcel Energy in which the utility would purchase five heavy-duty gas turbines.

Siemens and GE Vernova's efforts to boost turbine production come as a shortage threatens to slow the buildout of gas-fired generation. In the race to power the rapidly growing fleet of energy-hungry data centers, particularly those geared toward the development of artificial intelligence technology, gas turbines are winning because they're fast to deploy, reliable and flexible.

In addition, wait times for turbine deliveries have increased dramatically, stretching up to seven years in some cases.

For more information, see November 19, 2025, article - Massive Gas Turbine Demand Powers Up Siemens, Other Providers and September 15, 2025, article - Will Turbine Shortage Blunt Drive For New-Build Gas-Fired Generation?.

GE Vernova's Power and Electrification businesses are "well-positioned to serve the growing, long-cycle electric power market," the company said. Strazik pointed to more significant growth in the backlogs in 2026 for the two segments, "at better margins as we convert higher priced gas slot reservation agreements into orders and benefit from strong demand and pricing for grid equipment. These businesses' longer equipment cycles mean that we will not begin delivering on the majority of the higher margin orders placed in 2024 and 2025 until 2027 and beyond."

GE Vernova reported fourth-quarter net income of $3.7 billion, which was up from $484 million year-over-year, while full-year net income of $4.88 billion was up from $1.56 billion in 2024; that year's net income was impacted by challenges in the wind segment, turbine installation delays and tariff pressures, among other factors.

Key Takeaways

• Siemens and GE Vernova plan U.S. investment to support the manufacture of gas turbines and power grid solutions.
• Siemens' planned spend amounts to $1 billion, and GE Vernova's $600 million.
• GE Vernova recently reported 83 GW worth of contracted gas turbines, largely due to U.S. demand.
• The buildout of gas-turbine manufacturing comes as an overall shortage could inhibit gas-power development.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).