AI Boom Drives Companies to Buy Used Gas Turbines and Jet Engines

The rapid expansion of AI data centers has created a shortage of power generation equipment. With extremely long delivery times for new machinery, infrastructure developers are increasingly turning to used components and decommissioned equipment, including aircraft engines.

Why Do Infrastructure Providers Need Turbines and Engines?

Due to equipment shortages, companies are increasingly turning to the secondary market. They are purchasing used machinery, refurbishing old installations, and repurposing gas turbines based on aircraft engines.

For example, in April, AI infrastructure company Crusoe ordered 13 such units from US-based ProEnergy. With a combined capacity of 650 MW, the turbines will be used in Crusoe's data center projects across the United States.

Used equipment is cheaper than new installations. Well-maintained turbines cost around $1.5–1.7 million per MW, while refurbished units sell for approximately $1.3 million. By comparison, new models can cost $2–2.5 million per MW. However, older equipment may come with maintenance and reliability issues.

How Strong Is the Demand?

Global orders for gas turbines have already exceeded 100 GW, while the industry's production capacity is estimated at just 60–70 GW. In the US, the average delivery time for new turbines is now around six years.

Major manufacturers, including Siemens Energy, GE Vernova, and Mitsubishi Heavy Industries, acknowledge that demand from the AI industry exceeds their production capacity. According to Jefferies estimates, US data centers' demand for gas turbine capacity could grow from 17 GW in 2026 to more than three times that level by 2028.

Can Alternative Solutions Help Close the Gap?

The secondary market is unlikely to solve the capacity shortage entirely. Data center construction faces several other challenges, including operating permits, grid connections, and infrastructure limitations.

As a result, companies are also exploring alternative solutions. For example, Finland's Wärtsilä has received around 3 GW in orders from US data centers since spring last year for power generation units that use gas engines instead of turbines.

The AI boom is creating demand not only for chips and servers but also for power generation equipment. The fact that companies are increasingly turning to the secondary market highlights just how serious the current equipment shortage has become.