AI Boom Sends Data Centres Hunting for Used Turbines

Utilities, developers and AI infrastructure firms are buying second-hand gas turbines, refurbishing mothballed units and converting retired jet engines to power data centres, according to Reuters. New equipment has lead times stretching into the next decade, while demand for data centres remains strong.

Delivery Waits

Gas turbine deliveries in the United States take about six years on average, and current delivery discussions focus on 2030-31, according to Wood Mackenzie. Worldwide turbine orders exceed 100 GW, against estimated global production capacity of 60-70 GW. By 2028, global capacity is expected to reach about 87 GW against demand of 129 GW. US data centre demand is about 17 GW this year and could more than triple by 2028, according to Jefferies.

Used and Refurbished Units

Used units cost about $1.5-1.7 million per megawatt, refurbished units about $1.3 million, and new units about $2-2.5 million. Two 14.5 MW Solar Turbines units were sold for $12.5 million, while a new unit costs about $35 million with a five-year delivery. In April, Crusoe ordered 13 aeroderivative turbines from ProEnergy totalling 650 MW. Wärtsilä says it has received about 3 GW of orders since spring last year from US data centres for gas engines instead of turbines.

Limits of the Second-Hand Market

Ana Amicarella of EthosEnergy said the secondary market is “very, very hot right now.” Analysts say the market has limited excess supply and is unlikely to meaningfully offset delays. Used turbines may have unclear maintenance histories and limited remaining life, and turbines are only one bottleneck, alongside air permits and grid access.