AI Data Centres Turn to Used Gas Turbines and Jet Engines as New Units Run Years Late

The search shows that power equipment, not only chips, now limits how fast AI capacity can be built. Wood Mackenzie estimates that worldwide turbine orders exceed 100 gigawatts, against global manufacturing capacity of 60 to 70 GW, and that a gas turbine ordered in the US now takes six years to deliver on average. Siemens Energy, GE Vernova and Mitsubishi Heavy Industries have each said AI-driven orders are running ahead of what they can build. "Delivery conversations (are) firmly focused on the 2030 to 2031 window," Aurora Tenorio, a senior analyst at Wood Mackenzie, told Reuters.

Jefferies analysts estimate that US data centres alone account for nearly 17 GW of turbine demand this year, and that the figure could more than triple by 2028.

Second-Hand Prices Climb

The shortage has driven up prices for used equipment. "That secondary market is very, very hot right now," said Ana Amicarella, chief executive of EthosEnergy, who added that sellers are asking for more. Zach Machuca, managing partner at Origin Partners, put well-maintained used units at about $1.5 million to $1.7 million per megawatt and refurbished units at about $1.3 million. Aurora Energy Research puts new turbines at $2 million to $2.5 million per MW.

Smaller machines can be far cheaper. Dan Poole, general manager of ReflowX, said two 14.5 MW units built by Solar Turbines, a Caterpillar subsidiary, recently sold for $12.5 million, or about $430,000 per MW. He said new units of that size would cost about $35 million and take five years to arrive. Scott Schreeg, director of sales at SVI Bremco, said some developers are installing more than 100 small turbines at a single site, mixing models and brands.

"Every few weeks we get a request to say, 'Can you find a used gas turbine to put into a data centre?'" said Darayus Pardivala, who leads the US aftermarket business at Sulzer.

Jet Engines on the Ground

Aeroderivative turbines, which are adapted from aircraft engines, offer another route. AI infrastructure company Crusoe ordered 13 such units from ProEnergy in April, totalling 650 MW, for US data centre projects.

The workarounds carry risks. Used turbines can come with patchy maintenance records and limited remaining life, and it is not yet clear how well converted jet engines cope with running around the clock as a primary power source.

They are also unlikely to close the gap. Noor Qureshi, an associate at Enverus Intelligence Research, said the second-hand market is unlikely to offset a meaningful share of the delays. "The market is already constrained, with limited excess supply," Qureshi said. Air permits and grid connections remain separate bottlenecks.

Traditional utilities are paying the price as well. The Tennessee Valley Authority said equipment prices had "increased significantly" over the past two years. "Co-ops that need new capacity are turning to every viable option," said Jim Matheson, chief executive of the National Rural Electric Cooperative Association.

Some buyers are skipping turbines altogether. Finland's Wärtsilä has booked about 3 GW of orders from US data centres for gas-fired reciprocating engines. "What's driving the market? Lead times, lead times, lead times," said Anders Lindberg, president of Wärtsilä's energy business.