The surge in energy demands from artificial intelligence (AI) datacenters is creating a significant shortage of gas turbines needed for power generation. In response to this challenge, some operators are reportedly repurposing retired aircraft engines to serve as generators.
As reported, the increasing need for computational power to support the ongoing AI boom has prompted datacenters to expand their capacity, resulting in an increased strain on electricity supplies. According to recent analyses, US datacenters are projected to use 22 percent more grid power by the end of 2025 compared to the same period last year.
However, many areas are struggling to meet connection requests from these facilities, which has led operators to explore on-site power generation options. Notably, Schneider Electric advised this approach last year due to the growing demand.
The escalation in demand has overwhelmed gas turbine manufacturers, particularly in the United States, where the concentration of datacenters is highest. The Financial Times highlights that around two-thirds of the gas turbines used for electricity generation are produced by just three companies: Mitsubishi Heavy Industries (MHI) from Japan, Siemens from Germany, and GE Vernova, which emerged from a division of General Electric”s energy sector. An executive from MHI stated, “There”s so much demand right now that we can”t meet it all,” adding that North America is experiencing a particularly high demand, resulting in a three-year backlog for turbine deliveries.
Further complicating the situation, a report from the Institute for Energy Economics and Financial Analysis (IEEFA) reveals that manufacturers in Southeast Asia, including Vietnam and the Philippines, are facing wait times of up to five years for larger turbines, with some companies beginning to charge non-refundable fees for reservations. One developer reportedly paid GE Vernova $25 million to secure a delivery slot in 2030.
Amid this shortage, the US-based firm ProEnergy has begun offering refurbished jet engines as a viable alternative. These engines, inherently similar to gas turbines, can be adapted for energy production. According to IEEE Spectrum, some datacenters are already utilizing PE6000 turbines from ProEnergy to generate power during the construction phase and initial operational years of their facilities. Once grid power becomes accessible, these turbines will be relegated to backup roles or sold to other clients.
ProEnergy”s strategy involves acquiring and overhauling used General Electric CF6 engines, commonly found in commercial aircraft, and modifying them to power generators instead of providing thrust.
While the shortage of gas turbines poses significant hurdles for datacenter developers, other on-site power generation alternatives exist, such as diesel generators and advanced options like fuel cells or collaborating with wind farms. Some have even proposed the use of small modular reactors (SMRs), although these are not expected to be available until later in the decade.
