AI Demand Drives Surge in Second-Hand Gas Turbine Market
AI data center developers are purchasing refurbished gas turbines and converted jet engines as new equipment lead times in the United States extend to 2031.
Severe equipment shortages are forcing utilities and data center developers to rely on a secondary market for power generation. Lead times for new gas turbines in the United States now average six years, with some delivery windows extending to 2031. This supply gap has driven a surge in the purchase of second-hand turbines and the conversion of retired jet engines to power AI infrastructure.
Siemens Energy, GE Vernova, and Mitsubishi Heavy Industries report that AI-driven demand has exceeded their total production capacity. New equipment currently costs between $2 million and $2.5 million per megawatt, making refurbished units a more affordable and faster alternative for firms needing to scale quickly. For example, the AI infrastructure firm Crusoe ordered aeroderivative turbines based on jet engines from supplier ProEnergy to bypass traditional manufacturing delays.
The shortage is also impacting traditional power providers. The Tennessee Valley Authority and various rural electric cooperatives report rising costs and unprecedented lead times for essential power infrastructure, as they compete with the rapid expansion of AI data centers for limited equipment supplies.
