The global power-equipment industry is entering a major investment cycle as artificial intelligence, data centres, renewable-energy integration, industrial electrification and grid modernisation drive demand for electricity infrastructure.
AI is accelerating the trend, but the investment opportunity extends well beyond data centres. New electricity demand requires turbines, transformers, switchgear, circuit breakers, substations, transmission systems, UPS equipment, cooling technologies and digital power-management platforms.
Wood Mackenzie’s analysis of booming demand for power generation and grid equipment points to increasing pressure across the power-equipment supply chain as electricity consumption expands.
More importantly for the industry, demand is already appearing in company orders, backlogs and manufacturing investments. GE Vernova, Siemens Energy, Hitachi Energy, Eaton, Schneider Electric and ABB are expanding capacity or reporting strong electrical-equipment demand, suggesting that the current cycle could extend toward 2030.
GE Vernova Backlog Reaches $176 Billion
GE Vernova provides some of the clearest evidence of the power infrastructure boom.
The company has announced $1.3 billion of US manufacturing investment and plans to create 1,800 jobs while increasing production of turbines, switchgear and circuit breakers.
According to GE Vernova’s second-quarter 2026 financial results, orders reached $24.2 billion, increasing 88 percent organically, while backlog increased $13 billion sequentially to $176 billion.
Gas Power equipment backlog and slot-reservation agreements increased from 100 GW to 116 GW. GE Vernova expects at least 125 GW under contract by the end of 2026.
Manufacturing capacity is expanding alongside orders. Annual gas-turbine output is expected to reach 20 GW during the third quarter of 2026, increase to 24 GW in 2028 and potentially reach 30 GW in 2030.
AI is becoming an important contributor. GE Vernova’s Electrification data-centre orders exceeded $5 billion year-to-date in 2026, more than twice the entire 2025 level.
The combination of backlog growth, manufacturing expansion and data-centre orders provides strong evidence that rising electricity demand is converting into equipment spending.
Siemens Energy Commits $1 Billion to US Manufacturing
Siemens Energy is making a similar capacity bet.
The company is investing $1 billion in US manufacturing, with the programme expected to create more than 1,500 highly skilled jobs.
Investment will expand production capabilities across gas turbines, transformers, switchgear and other grid equipment.
The programme reflects the increasingly interconnected nature of electricity investment. New generation capacity requires transformers, transmission networks and substations, while data centres and industrial facilities require additional grid connections and power-distribution equipment.
This simultaneous requirement for generation and grid investment increases the addressable market for diversified power-equipment manufacturers.
Hitachi Energy Bets INR 2,000 Crore on India
India represents another major growth opportunity.
Hitachi Energy is investing INR 2,000 crore to expand transformer manufacturing at Karjan, Vadodara.
The Hitachi Energy India transformer manufacturing expansion is scheduled for completion in FY28 and will support large power transformers used in high-voltage transmission, HVDC systems, electricity generation, industrial facilities and AI data centres.
The investment is supported by India’s enormous transmission requirements.
Hitachi Energy has cited Central Electricity Authority estimates indicating India could require INR 7.93 lakh crore of transmission investment through 2035 to integrate more than 900 GW of non-fossil generation.
That creates substantial potential demand for transformers, HVDC equipment, substations, grid controls and high-voltage technologies.
India is therefore developing into both an important power-equipment market and a manufacturing base serving domestic and potentially international customers.
Eaton Electrical Global Backlog Surges 103 Percent
Eaton’s order performance shows that the power-equipment cycle extends beyond turbines and large transformers.
Eaton’s second-quarter 2026 results showed twelve-month rolling orders in Electrical Americas increasing 41 percent organically, while Electrical Global orders increased 33 percent.
Electrical Americas backlog rose 33 percent year over year, while Electrical Global backlog surged 103 percent.
Eaton serves data centres, utilities, industrial customers and commercial infrastructure, giving it exposure to several of the major drivers behind electricity investment.
AI is also changing power requirements within data centres. Eaton is developing technologies including 800 VDC power architectures as higher computing densities increase the need for efficient power conversion and distribution.
Schneider Electric Revenue Hits €11.459 Billion
Schneider Electric is benefiting from strong demand for electrical distribution, UPS equipment, cooling, automation and energy management.
Second-quarter 2026 revenue reached €11.459 billion, increasing 16.5 percent organically.
Energy Management expanded 18 percent organically, while North America achieved 23.1 percent organic growth, supported partly by data-centre demand.
Schneider’s broad portfolio gives it exposure to several infrastructure layers within the same data-centre development.
AI facilities increasingly require integrated power distribution, UPS systems, automation, monitoring, liquid cooling and energy-management platforms. Increasing rack density could further raise spending on electrical and thermal infrastructure.
ABB Expands India Manufacturing and R&D
ABB is also expanding manufacturing to capture growing electricity and automation investment.
The company announced approximately $75 million of investment in India during 2026, following more than $35 million in 2025.
The investment will strengthen manufacturing and R&D capabilities across electrification and automation.
India provides ABB with exposure to renewable-energy development, transmission expansion, industrial electrification, rail infrastructure and data-centre construction.
ABB and Hitachi Energy’s investments also demonstrate how global manufacturers are increasing local capacity as India’s electricity infrastructure requirements expand.
Transformers and Switchgear Could Be Biggest Power Equipment Winners
Transformers, switchgear, circuit breakers and substation equipment are becoming strategically important parts of the investment cycle.
The same equipment is required by data centres, renewable-energy projects, utilities, industrial facilities and conventional generation.
Manufacturing capacity can also take significant time to expand because large power transformers and high-voltage equipment require specialised factories, testing infrastructure and engineering expertise.
Renewable expansion creates another opportunity through high-voltage transmission. Integrating generation located far from major consumption centres can increase demand for HVDC systems, converter stations, specialised transformers, power semiconductors and grid-control technologies.
AI adds demand for UPS equipment, advanced power distribution and liquid cooling as computing density increases.
The result is a power-equipment cycle spanning both traditional heavy electrical machinery and advanced data-centre infrastructure.
Power Equipment Investment Cycle Could Extend Through 2030
The strongest evidence for a sustained global power-equipment boom is coming from actual orders, backlog and manufacturing commitments.
GE Vernova has $176 billion of backlog, 116 GW of Gas Power equipment backlog and slot reservations, and more than $5 billion of 2026 year-to-date Electrification data-centre orders.
Eaton’s Electrical Americas orders increased 41 percent, Electrical Global orders grew 33 percent, and Electrical Global backlog jumped 103 percent.
Schneider Electric generated €11.459 billion in second-quarter revenue, with Energy Management growing 18 percent.
Manufacturers are simultaneously committing significant capital to capacity expansion. GE Vernova is investing $1.3 billion in US manufacturing, Siemens Energy $1 billion, Hitachi Energy INR 2,000 crore in Indian transformer capacity, and ABB approximately $75 million in India during 2026.
These commercial indicators are more significant than headline forecasts of future electricity demand because they show that part of the anticipated power boom is already converting into customer orders and manufacturing investment.
AI data centres have accelerated the cycle, but renewable integration, industrial electrification and grid modernisation broaden the opportunity considerably.
The companies positioned to benefit most through 2030 could therefore be those supplying the infrastructure connecting new electricity generation with rapidly growing loads — turbines, transformers, switchgear, substations, HVDC systems, UPS equipment, cooling technologies and digital power-management systems.
SHAFANA FAZAL
