AI data-center builders hunt for used turbines as new equipment faces years of delays

Power for new AI data centers increasingly depends on finding machinery someone else can spare. Utilities and developers are hunting for used gas turbines, reviving idle equipment and converting retired jet engines, according to a November 9 Reuters analysis. Demand has overwhelmed manufacturing capacity, pushing buyers toward equipment with a different set of risks.

Worldwide gas-turbine orders exceed 100 gigawatts, compared with estimated global production capacity of 60–70 gigawatts, according to Wood Mackenzie. Siemens Energy, GE Vernova and Mitsubishi Heavy Industries, the market’s dominant manufacturers, all say AI demand has pushed orders beyond what they can produce. Wood Mackenzie analyst Aurora Tenorio said U.S. delivery discussions are focused on 2030–2031.

Planned factory growth may not close that gap. Jefferies analysts expect global manufacturing capacity to reach about 87 gigawatts in 2028, against turbine demand of 129 gigawatts. They estimate U.S. data centers account for nearly 17 gigawatts of demand this year, a figure that could more than triple by 2028.

The search is reaching equipment service firms. Darayus Pardivala, who leads Sulzer’s U.S. aftermarket business, said requests to find used turbines for data centers arrive every few weeks. EthosEnergy CEO Ana Amicarella described a very hot secondary market, with sellers demanding higher prices.

Used machines can still undercut new ones. These indicative equipment prices illustrate the discount, rather than universal offers.

Some smaller units sell at steeper discounts. ReflowX general manager Dan Poole said two 14.5-megawatt Solar Turbines machines recently sold for $12.5 million combined. Buying them new would cost about $35 million and require a five-year wait, he said. Poole did not identify the buyer.

Scarcity also changes the configuration of power installations. Developers sometimes deploy more than 100 smaller turbines at one site, mixing models and brands when larger machines are unavailable, according to Scott Schreeg, sales director at equipment supplier SVI Bremco.

The alternatives carry equipment risks. Tenorio identified several concerns with overhauled turbines, while converted jet engines raise a separate question about their suitability for continuous power generation:

• Maintenance histories may be unclear, and machines may have limited operating life left.
• Long-term servicing support can be weak.
• Converted aircraft engines face questions about fitness for continuous work as generators.

Aircraft-derived technology is already part of procurement plans. In April, Crusoe ordered 13 ProEnergy turbines based on GE Aerospace jet engines, with a combined capacity of 650 megawatts for U.S. AI data-center projects. Separately, Wärtsilä says U.S. data centers have ordered about three gigawatts of gas-engine power units—not turbines—since spring 2025.

These workarounds offer only partial relief. Enverus Intelligence Research associate Noor Qureshi said limited excess supply means the secondary market is unlikely to offset a meaningful share of delays. Turbine availability is also only one constraint: air permits and grid access can still hold projects up.

Traditional electricity suppliers are feeling the squeeze, too. The Tennessee Valley Authority said prices across new, used and refurbished equipment have increased significantly over two years. National Rural Electric Cooperative Association CEO Jim Matheson said member utilities face unprecedented lead times and rising prices, prompting some to pursue refurbished turbines.