The rapid expansion of artificial intelligence data centers is creating a global shortage of gas turbines needed to generate electricity. With worldwide turbine orders exceeding 100 gigawatts while manufacturers can produce only 60–70 gigawatts annually, companies are increasingly searching for used and refurbished turbines, restarting mothballed equipment, and converting retired jet engines into power generators. In the United States, delivery times for new gas turbines now average approximately six years, with some orders extending into 2030–2031.
The shortage is driving up prices for both new and second-hand equipment, Reuters reports. Well-maintained used turbines can cost around $1.5 million to $1.7 million per megawatt, compared with $2 million to $2.5 million for new units. Data center developers are also turning to smaller turbines, sometimes installing more than 100 units at a single facility. The growing demand is affecting utilities and rural electric cooperatives, which are also struggling with longer delivery times and rising equipment costs.
However, used turbines and converted jet engines are unlikely to solve the power shortage entirely because supplies are limited and older equipment can have maintenance, reliability, and operating-life concerns. Grid access, regulatory permits, and infrastructure constraints are creating additional delays. Meanwhile, alternative power solutions are gaining attention, with Finland’s Wärtsilä securing approximately 3 gigawatts of U.S. data center orders for gas-engine power systems.
