Mitsubishi Heavy Industries (TYO:7011) is overhauling gas turbine production to raise output and cut manufacturing time while limiting capital spending, as demand rises from power-hungry AI data centers, Nikkei reported Thursday.

President Eisaku Ito is leading the company's Innovative Total Optimization project at the Takasago Machinery Works in western Japan, where more than 100 employees reviewed over 1,000 processes across procurement, assembly, testing and design, according to the report.

The effort aims to improve efficiency in gas turbine combined cycle systems and reduce a growing order backlog. Orders at Mitsubishi Heavy's energy systems unit climbed about 40% to 3.6 trillion yen in the year ended March 2026, the report said.

The company is streamlining production by separating assembly lines for different turbine models and reducing machinery changeovers. Mitsubishi Heavy aims to support roughly 30% higher production with limited additional investment, according to the report.

The Japanese manufacturer plans to invest about 50 billion yen in turbine capacity, below expansion plans disclosed by rivals GE Vernova and Siemens Energy, the report said.

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