AI data center boom strains power grid: firms scramble for used turbines as new deliveries stretch into 2030s

The surging demand from AI data center construction is causing severe shortages of gas turbines, with new equipment delivery timelines extending into the 2030s, according to Reuters reporting on November 9. This scarcity is forcing power companies and developers globally to seek out used or refurbished gas turbines, even repurposing retired jet engines. Wood Mackenzie Senior Analyst Aurora Tenorio noted that delivery discussions are centered around 2030 to 2031. Equipment broker EthosEnergy CEO Anna Amicarella confirmed the used market is extremely active, with sellers increasing prices. While Enverus Intelligence Research's Nur Kureci suggested the secondary market might not significantly ease delays due to existing supply constraints, the market reflects the massive impact of data center expansion. Global gas turbine orders exceed 100GW, yet global capacity is estimated at only 60GW to 70GW. Jefferies analysts project US data center needs alone require nearly 17GW this year, potentially tripling by 2028. While major manufacturers like Siemens Energy, GE Vernova, and Mitsubishi Heavy Industries report orders surpassing their capacity, the high cost difference is notable: new turbines average $2 million to $2.5 million per MW, compared to used units priced around $1.3 million to $1.7 million per MW, according to Origin Partners' Zach Machuka.