Energy demand of AI data centers revitalizes the second-hand turbine market

The massive electricity deficit arising from the rapid growth of AI infrastructure and new equipment production lead times reaching up to six years have pushed energy and technology companies toward the second-hand market, reviving the market for aging gas turbines and retired aircraft jet engines.

The competition in the field of artificial intelligence has triggered extraordinary activity in the energy market, pushing companies to explore equipment not normally intended to power data centers. Many alternatives, from second-hand gas turbines to retired aircraft jet engines, are being evaluated for the purpose of supplying electrical power.

The extension of delivery times for new equipment orders to up to six years and manufacturers' struggles to meet demand have increased the rush for turbines. World-leading turbine manufacturers such as Siemens Energy, GE Vernova, and Mitsubishi Heavy Industries are positively impacted by this process.

While global turbine orders have surpassed the 100-gigawatt threshold, annual production capacity remains at the level of 60 to 70 gigawatts. Second-hand turbines find buyers between $1.5 million and $1.7 million per megawatt, whereas the cost of new equipment ranges between $2 million and $2.5 million per megawatt, and refurbished units can be procured for approximately $1.3 million.