Why Modular Gas Turbines Are Europe’s Bridge to Clean Compute

Global accelerating demand for energy-intensive data and AI infrastructure has outpaced current supply. Grid constraints, long permitting cycles, and volatile power markets are pushing hyperscale and compute-focused operators to secure on-site, dispatchable generation.

Labs and hyperscalers are moving to natural gas turbines as the current cure to bottlenecked electricity supply.

Among available technologies, modular natural gas turbines, particularly Siemens Energy’s SGT-800 and SGT-A65 families, offer a realistic path to deploy 1 GW-scale power capacity by 2028–2029 while remaining compliant with Europe’s net-zero trajectory through hydrogen-ready design.

However, supply chains are tightening sharply. New turbines now face five- to seven-year lead times, and equipment costs are rising. Organizations that act within the next 12 months can still lock in delivery slots, while those that delay risk missing the current build cycle.

1. Context: compute growth meets Europe’s energy bottleneck

AI data-centre loads are expected to exceed 30 GW of new demand across Europe by 2030, equivalent to the total generation capacity of Spain’s nuclear fleet. Grid connections for renewables or grid-purchased power often extend beyond 2030 in major hubs such as Frankfurt, Amsterdam, and Dublin.

To sustain expansion, operators are turning toward self-contained energy campuses, either gas-fired or hybrid sites colocated with compute facilities. Natural gas remains the only scalable, 24/7 fuel available at industrial quantities, with hydrogen positioned as its successor.

2. The modular turbine solution

Unlike single 400 MW heavy-duty machines, a modular architecture stacks 10 to 20 smaller units (50–70 MW each) to reach gigawatt-class capacity.

Siemens Energy’s SGT-800 and SGT-A65 stand out in the European context for modularity, service presence, and hydrogen readiness.

3. Supply chain realities: a tightening market

• Record backlogs: Siemens Energy reported an order book exceeding €130 billion in 2025, with a rising share from data-centre and grid-support projects.
  
  

• Delivery windows: Global lead times for new turbine packages are five to seven years, and the first Siemens deliveries for new orders now cluster around 2027–2028.
  
  

• Partial mitigation: Pre-owned or redeployed units can bridge 6–12 months of schedule, though with lower efficiency and warranty limits.
  
  

• Competition: GE Vernova and Mitsubishi Power show similar constraints. Multi-vendor procurement may reduce risk but not overall timelines.
  
  

4. Economics: the CapEx equation

For a 1 GW compute-campus plant, this equates to an EPC investment of €1.3–1.9 billion, excluding fuel tie-ins and grid interconnects. While modular plants have higher unit cost than large combined-cycle stations, they deliver earlier, scale incrementally, and maintain operational resilience.

5. The hydrogen-ready advantage

Each new Siemens modular turbine is supplied with hydrogen capability:

• Immediate operation with 30–50% hydrogen blends
  
  

• Upgradable combustors for 100% hydrogen operation expected by 2030
  
  

• Compliance with EU “Hydrogen-Ready” certification, enabling green-finance eligibility and carbon-tax mitigation
  
  

Transition pathway

1. 2025–2030: Operate on natural gas with optional hydrogen blending and carbon-offset mechanisms.
   
   

2. 2030–2035: Retrofit combustors for 100% hydrogen and connect to EU hydrogen-backbone networks.
   
   

3. Beyond 2035: Pair with on-site electrolysis or local hydrogen supply to achieve fully renewable operation.

This phased approach converts a fossil-based start into a net-zero-aligned energy asset that meets future EU taxonomy and data-centre sustainability regulations.

6. Implementation blueprint for a 1 GW site

Phase 1 (2025–2026):

• Secure OEM slots for 8–12 Siemens 60 MW modules.
  
  

• Identify interim used-unit opportunities for early 200–300 MW.
  
  

• Begin permitting and gas interconnection.
  
  

Phase 2 (2026–2028):

• Execute parallel civil, grid, and BOP works using standardized Siemens “single-lift” packages.
  
  

• Commission the first power blocks in 24–30 months.
  
  

Phase 3 (2028–2035):

• Complete the 1 GW stack by 2029.
  
  

• Introduce hydrogen blending progressively to 100 % hydrogen capability by the mid-2030s.
  
  

7. Strategic implications

• Early movers will secure scarce OEM slots and labor resources, creating essential energy independence for compute expansion.
  
  

• Flexibility is more valuable than size. Modular configurations balance speed, reliability, and decarbonization potential more effectively than mega-plants.
  
  

• Hydrogen readiness converts what might become a stranded fossil asset into a long-term, ESG-compliant power platform.
  
  

Conclusion

Europe’s AI-driven demand curve is colliding with grid and renewable deployment constraints. Modular gas turbines, especially Siemens’ European-proven models, offer a practical bridge that is fast, scalable, and adaptable to zero-carbon fuels.

Timing is the decisive factor. By 2026, turbine order books will likely close for delivery before 2030. Organizations that secure supply now will define the backbone of Europe’s compute economy and its hydrogen future.