Mitsubishi Heavy Industries to Double Gas Turbine Capacity Amid Global Demand Surge
Mitsubishi Heavy Industries (MHI) is set to double its gas turbine production capacity within the next two years to meet the growing global demand. This decision comes as the company sees a surge in orders due to the proliferation of data centers and the need for stable, cleaner energy alternatives.
Gas TurbinesMitsubishi Heavy IndustriesGlobal DemandData CentersEnergy SolutionsReal Estate MumbaiSep 01, 2025
We were working toward boosting production capacity by 30 per cent, but that’s not enough to meet growing demand, Ito said. Fulfilling those orders is our top priority. The decision to expand production comes at a time when the global demand for gas turbines has surged. This is driven by several factors, including the replacement of turbines installed decades ago, the proliferation of data centers, new manufacturing projects, and the continued electrification of industries.
Natural gas is seen as a stable alternative to wind and solar power, one that’s also cleaner than burning coal and more readily available than nuclear energy. Other manufacturers, like GE Vernova Inc., are also experiencing an increase in orders for turbines. Mitsubishi Heavy is working to expand output by improving the efficiency of its production chain, even as the cost of making turbines has nearly doubled in the past few years due to expensive materials, supplies, and staffing.
Boom and bust cycles in turbine demand make long-term investments a risky bet, with varying forecasts on the speed and size of future demand from data centers. Mitsubishi Heavy’s spending will remain judicious, Ito said. The goal is to be as lean as possible, even though demand should remain strong over the next decade, he added.
Mitsubishi Heavy, which manufacturers everything from forklifts to heavy payload rockets, is one of the biggest turbine makers in the world. Ito took over as the head of the firm earlier in April. Earlier this month, Mitsubishi Heavy was selected as a preferred bidder to build a fleet of warships for Australia, the first of its kind for the company and a boost for Japan’s ambitions to become a major exporter of military equipment. These are far more complicated to make than other kinds of ships, Ito said. But if such needs arise at the national level, we’ll strive to meet them.
The company's strategic move to double its gas turbine capacity underscores its commitment to meeting the global demand for reliable and cleaner energy solutions. With the ongoing shift towards sustainable energy sources, MHI's expansion plans are well-aligned with the global trend towards reducing carbon emissions and enhancing energy efficiency.
Frequently Asked Questions
Why is Mitsubishi Heavy Industries doubling its gas turbine capacity?
MHI is doubling its gas turbine capacity to meet the growing global demand driven by the replacement of old turbines, the proliferation of data centers, new manufacturing projects, and the continued electrification of industries.
What are the main factors driving the increased demand for gas turbines?
The main factors include the replacement of turbines installed decades ago, the proliferation of data centers, new manufacturing projects, and the continued electrification of industries. Natural gas is also seen as a stable, cleaner alternative to coal and more readily available than nuclear energy.
How is Mitsubishi Heavy Industries improving its production efficiency?
MHI is working to expand output by improving the efficiency of its production chain, even as the cost of making turbines has nearly doubled in the past few years due to expensive materials, supplies, and staffing.
What is Mitsubishi Heavy Industries' strategy for long-term investments in turbine production?
MHI's strategy is to remain judicious with its spending, aiming to be as lean as possible, even though demand for gas turbines is expected to remain strong over the next decade.
What recent milestone has Mitsubishi Heavy Industries achieved in the military sector?
MHI was selected as a preferred bidder to build a fleet of warships for Australia, marking the company's first such project and a significant boost for Japan’s ambitions to become a major exporter of military equipment.
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