Observed Signal · Nov 10, 2026 · Market Analysis · Source: Trending Topics (DACH/CEE Innovation & Tech) · Impact: 3/5 · Sentiment: Positive
AI Power Rush: Data Centers Buy Used Jet Engines
The AI boom is driving data center operators to purchase used gas turbines and converted jet engines due to six-year lead times for new turbines. A Reuters analysis reveals that Siemens Energy, GE Vernova, and Mitsubishi Heavy Industries face capacity constraints. Anthropic has agreed to pay $3.4 billion for gas generators from Caterpillar, while SpaceX's xAI has invested nearly $3 billion in turbines. Companies like ProEnergy and FTAI Power convert aircraft engines into power-generating turbines, with orders from Crusoe and an unnamed cloud provider. The article highlights a market where demand exceeds supply, with delivery times stretching into the early 2030s, and notes environmental and regulatory challenges.
This article highlights a significant market trend where AI data centers are turning to unconventional power sources, impacting the energy and aviation sectors. It indicates a supply-demand squeeze in gas turbines and reflects a broader shift in infrastructure strategies, relevant for AdTech due to the growing energy needs of AI-driven technologies.
Track Anthropic Signals & Market Shifts in Real-Time
Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your Polaris7 workspace to monitor these entities.
Key Takeaways & Evidence Grounding
- Anthropic pays $3.4 billion for gas generators from Caterpillar, with 1.7 GW capacity.
- SpaceX (xAI) spends nearly $3 billion on gas turbines, including a 1.2 GW power plant in Mississippi.
- Crusoe orders 13 converted jet engines from ProEnergy, totaling 650 MW.
- FTAI Power secures contracts for over 100 units of converted CFM56 engines for 2027-2028.
- New gas turbine lead times in the US average six years, per Wood Mackenzie.
Connected Companies & Entities
“Anthropic is an AI lab that purchased gas generators from Caterpillar for $3.4 billion.”
“Siemens Energy is one of the three major gas turbine manufacturers mentioned as facing capacity constraints due to AI demand.”
“SpaceX (parent of xAI) bought gas turbines for nearly $3 billion and is building a power plant in Mississippi.”
“Crusoe, the data center builder for OpenAI's Stargate campus, ordered 13 converted jet engines from ProEnergy.”
“Microsoft withdrew as anchor customer for a data center in Loughton, England due to grid connection delays.”
“Jefferies is an investment bank that provided data on US data center power demand.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
AI Gas Rush: Old Jet Engines Power Data Centers
The AI boom is causing a surge in demand for natural gas turbines, with delivery times for new turbines averaging six years in the US. Data center operators are increasingly turning to converted jet engines, so-called aeroderivatives, as a stopgap. Anthropic is paying $3.4 billion for gas generators from Caterpillar, and SpaceX has purchased nearly $3 billion worth of turbines. Companies like ProEnergy and FTAI Power are converting retired aircraft engines into power units. Crusoe ordered 13 converted engines from ProEnergy for its Stargate campus, and an unnamed cloud company placed a $1.465 billion order with FTAI. The trend raises concerns about efficiency, emissions, and environmental impact, with legal and political pushback emerging.
AI Data Centers Turn to Old Jet Engines for Fast Power
AI data center builders, facing years-long waits for grid connections and new gas turbines, are increasingly turning to converted jet engines to generate electricity quickly. These engines, pulled from retired aircraft and rebuilt to burn natural gas, can power a data center within 24 months, compared to seven years for a traditional grid hookup in regions like Northern Virginia. Companies like xAI and OpenAI have already deployed such units, with ProEnergy supplying converted GE engines. Crusoe, which builds AI data centers, ordered 13 units in April but abandoned a $1.25B deal for Boom Supersonic turbines in September. While offering speed, these engines are less efficient and more polluting, making them a short-term solution to the power bottleneck.
Behind-the-Meter Power Challenges for Datacenters
SemiAnalysis reports that behind-the-meter (BTM) power generation for AI datacenters has become mainstream, with 75GW of firm orders tracked, 20GW ordered in Q2 2026 alone. Major deals include Microsoft's 5GW with Chevron and Crusoe, Google's 930MW aeroderivative turbines and 900MW Bloom fuel cells, and OpenAI's 1.4GW campus with Jenbacher engines. The report details six key challenges: contracts & bankability, permitting, fuel supply, equipment procurement, workforce, and electrical physics. It highlights permitting delays (e.g., Oracle's Project Jupiter) and the rise of Energy-as-a-Service vendors like VoltaGrid. The analysis emphasizes the shift towards reciprocating engines and fuel cells, and the growing importance of balance-of-plant equipment.
Receive all future signals for Anthropic & competitors in your briefing
Never miss material M&A deals, leadership changes, account wins, or product rollouts. Polaris7 monitors 20,000+ primary sources 24/7, delivering verified telemetry directly into your executive briefing.