Data center operators like xAI and OpenAI are deploying converted aircraft jet engines to power facilities, bypassing long grid connection delays. While this 'speed-to-power' strategy boosts infrastructure, investors should track the rising demand for equipment suppliers like GE Vernova alongside emerging regulatory risks regarding emissions and legal challenges.
The global race to build AI infrastructure has hit a major bottleneck: the power grid. With connection timelines stretching up to seven years in key regions like Northern Virginia, data center operators are finding creative, albeit unconventional, ways to secure electricity. Companies including Elon Musk’s xAI and partners of OpenAI are now deploying converted aircraft jet engines to generate power on-site, allowing new data centers to go live in as little as 24 months.
This trend relies on repurposing retired jet engines, such as GE CF6-80C2 cores—typically found in older aircraft like the Boeing 747—into stationary gas-fired turbines. Specialized firms like ProEnergy take these refurbished cores and modify them to generate power for data centers. xAI has notably used these turbines at its Colossus 2 facility in Mississippi, while OpenAI’s partner, Crusoe, has implemented similar technology at the Stargate project in Abilene, Texas.
From a market perspective, this shift has become a significant growth driver for equipment manufacturers. GE Vernova has reported a sharp increase in demand for these aeroderivative turbines, with orders reaching 57 units in the third quarter of 2026, a substantial jump from the 9 units recorded in the same period last year. For investors, this highlights a clear beneficiary in the industrial manufacturing sector, as companies scramble to meet the power-hungry demands of AI growth without waiting for traditional utility upgrades.
However, this strategy carries notable risks that investors should monitor. These converted engines are less efficient and have higher emission profiles—including pollutants like formaldehyde and nitrogen oxides—compared to purpose-built, modern gas turbines. This has led to mounting environmental backlash. Most notably, xAI is currently facing a lawsuit in Mississippi under the Clean Air Act, with critics and local residents raising concerns about the legality and environmental impact of these makeshift power plants.
Looking ahead, the long-term viability of this model remains a key question. While these engines solve immediate operational delays, they may eventually become stranded assets if grid infrastructure catches up or if stricter environmental regulations are enforced. Investors should keep a close eye on future regulatory rulings, the ongoing legal challenges in Mississippi, and whether this energy trend leads to sustained revenue growth for turbine manufacturers or if it remains merely a temporary stopgap in the AI infrastructure build-out.