American fossil fuel investment to exceed China for first time in decades

Twenty gigawatts of gas-fired turbines were ordered by U.S. customers in the first quarter of 2026 alone. This surge is expected to push American spending on coal and gas power plants to $50 billion this year, surpassing China’s investment in the sector. The shift is driven by the energy requirements of modern AI facilities, which can consume between one and several gigawatts, necessitating localized, “behind the meter” power generation that bypasses the traditional grid.

The scarcity of manufacturing capacity has driven the price of these turbines from $800 per kilowatt to more than $2,500. GE Vernova and Siemens report substantial order backlogs, with GE Vernova citing $18 billion in unfulfilled orders. While China continues to dominate in clean energy—installing 1.2 terawatts of solar capacity—the U.S. is leveraging its plentiful domestic gas supplies to meet the immediate, high-density power needs of the technology sector, even as global carbon emissions continue to rise.