Mitsubishi Heavy Industries is investing $490 million (€439 million) to expand its US gas turbine manufacturing operations as the technology industry’s electricity appetite threatens to overwhelm existing power infrastructure.
The Japanese engineering giant plans to expand its Savannah Machinery Works facility in Pooler, Georgia, adding 450,000 square feet of manufacturing space and creating more than 220 jobs. The investment will more than double the factory’s existing footprint as utilities scramble to secure equipment for new power stations.
The expansion follows an announcement on 23 October, with Mitsubishi preparing to increase American production as demand from data centres continues accelerating. The company’s existing Savannah operation manufactures advanced gas turbines, steam turbines and associated power generation equipment for customers throughout the Americas.
Mitsubishi intends to install additional machining equipment, introduce advanced manufacturing technology and improve production efficiency. The facility currently occupies approximately 430,000 square feet, making the planned expansion a substantial increase in its manufacturing capacity.
The investment reflects a growing problem for technology giants spending hundreds of billions of dollars on AI infrastructure. They can order enormous quantities of Nvidia accelerators, build warehouses full of servers and announce revolutionary plans, but none of it accomplishes much without enough electricity to switch the expensive toys on.
According to industry estimates cited by Mitsubishi, US demand for large gas turbines increased from 6.1 gigawatts in 2020 to nearly 40 gigawatts in 2025. Manufacturing capacity has become a significant bottleneck as utilities attempt to increase electricity generation to accommodate data centres and industrial expansion.
Mitsubishi estimates that hyperscale data centres account for approximately 45 per cent of the increase in demand. Large technology companies are increasingly securing dedicated electricity supplies because conventional grid connections cannot always be delivered quickly enough to match their construction schedules.
The company has accumulated a substantial order backlog. Mitsubishi Heavy Industries recently reported commitments covering approximately 35 gigawatts of large-frame gas turbine capacity, up from 23 gigawatts a year earlier. Some equipment ordered today is unlikely to reach customers until between 2028 and 2030.
Mitsubishi plans to double its overall gas turbine production capacity compared with 2024 levels. The Savannah investment forms part of that programme, although the company has not disclosed exactly how many additional turbines the expanded factory will manufacture annually.
Georgia has become an important location for data centre construction, attracting investments from major cloud providers. Georgia Power expects about 10 gigawatts of additional electricity demand, with eight gigawatts tied to data centres. OpenAI and Google are among the companies developing substantial facilities in the state.
The Japanese manufacturer has supplied equipment to Georgia Power, including a gas turbine installed at Plant Yates in 2025. The utility has ordered additional turbines as it expands generation capacity to meet the state’s growing electricity needs.
Mitsubishi’s American expansion extends beyond Savannah. The company has enlarged its Power Generation Services headquarters in Orlando and plans to open a new corporate headquarters in Lake Mary, Florida, in November. The company plans further manufacturing and service investments through 2028.
The rush toward gas-fired electricity generation adds another complication for technology companies that have spent years promising carbon-neutral operations. Natural gas turbines can provide dependable electricity, but they emit carbon dioxide and expose operators to fuel price volatility. Mitsubishi has not announced when construction of the Savannah expansion will begin or when the additional capacity will become operational.
