U.S. Companies Projected to Spend $50 Billion on Coal and Gas Power Plants in 2026, Surpassing China by $3 Billion

U.S. companies are projected to spend $50 billion on coal- and natural-gas-fired power generation in 2026, according to the International Energy Agency as reported by OilPrice.com. This marks the first time in decades that American outlays on these fuels will surpass China’s, with the gap reaching $3 billion.

The increase stems largely from orders for gas turbines tied to data-center construction. U.S. firms placed orders for 20 GW of gas-turbine capacity in the first quarter alone. Prices for the equipment have risen from $800 per kWh to more than $2,500 per kWh amid tight supply, OilPrice.com reported, citing a Rystad Energy analyst.

Siemens Energy recorded a record quarter for gas-services orders in February, with 102 new turbines added to its backlog. Forty percent of those orders originated in the United States and 35 percent in Europe. Mitsubishi announced plans to double its gas-turbine production capacity.

The company’s prior target had been a 30 percent increase. Its chief executive stated that the earlier goal “was not enough to meet growing demand” and that fulfilling orders is now the top priority. com noted that rising electricity demand from data centers and the need for backup generation to balance intermittent wind and solar output have contributed to the surge in orders for coal and gas plants.