Investment in fossil fuel-powered electricity generation in the United States is set to exceed that of China for the first time in decades, driven largely by a surge in orders for gas-fired turbines. According to data from the International Energy Agency, U.S. spending on coal- and gas-powered plants is projected to reach $50 billion in 2026, surpassing China’s investment by approximately $3 billion.
The increase in U.S. investment reflects both a rise in the number of gas turbine orders and a significant jump in their unit prices. Costs have escalated sharply, with prices rising from around $800 per kilowatt-hour to more than $2,500, as demand outpaces manufacturing capacity. Much of this turbine demand is linked to “behind the meter” generation, where companies produce electricity onsite rather than relying on the power grid. Key manufacturers like Siemens and GE Vernova report substantial backlogs, fueled by tech giants such as Alphabet, Amazon, and Meta Platforms, which are rapidly expanding data center infrastructure to support growing artificial intelligence workloads.
This growth in fossil fuel infrastructure comes amid policy changes under U.S. President Donald Trump’s administration, which has rolled back several environmental regulations and incentives aimed at promoting clean energy. Critics have noted that these policy shifts have slowed progress toward decarbonization.
Analysts highlight that the abundance of domestic natural gas reserves provides the United States with a strategic advantage in expanding its power capacity. Reid Ramdathsinh, a power analyst at consulting firm Rystad Energy, noted gas-fired turbines’ increased role in providing grid stability as intermittent renewable sources like solar and wind grow within the energy mix.
The uptick in investment in fossil fuel power in the U.S. coincides with a reported 10 percent rise in coal consumption in 2025, following a 50 percent surge in gas prices that has made coal more economically attractive. This trend has been further influenced by geopolitical tensions, including the ongoing conflict in the Middle East.
In contrast, China continues to invest heavily in coal-fired power capacity, benefiting from lower construction costs compared to the U.S. Meanwhile, China is also leading the expansion of renewable energy. By the end of 2025, the country had installed nearly 1.2 terawatts of solar capacity, representing about half of the global total. China adds more renewable energy capacity annually than most countries have in total installed.
Despite these efforts, global energy remains dominated by fossil fuels. The Energy Institute’s annual Statistical Review of World Energy reported that global carbon emissions increased by 1.1 percent in 2025, underscoring ongoing challenges in transitioning to cleaner energy. Nick Wraith, chief executive of the Energy Institute, commented that while there is encouraging progress in substituting fossil fuels in power generation, emission levels continue to rise amid escalating energy security concerns.