The artificial intelligence boom is creating an unexpected energy crisis, forcing some of the world’s biggest technology companies to look beyond traditional power sources to keep their data centers running. As electricity grid connections become increasingly difficult to secure, some AI operators are turning to an unusual solution: converting retired aircraft jet engines into natural gas-powered generators.
According to a report by The New York Times published on Tuesday, several companies are exploring or already deploying rebuilt jet engines to generate electricity directly for their data center operations.
The move highlights the growing gap between the rapid expansion of artificial intelligence infrastructure and the ability of existing power systems to supply enough electricity.
With AI companies investing billions of dollars in computing infrastructure, access to reliable electricity has become one of the industry’s biggest challenges. Traditional power projects and grid connections can take years to complete, creating delays that threaten construction schedules and commercial operations.
For companies unwilling to wait, converted jet engines offer an alternative that can potentially deliver electricity much faster, even though the technology comes with significant efficiency and environmental disadvantages.
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AI Data Centers Face Growing Electricity Shortages
The rapid development of artificial intelligence has dramatically increased demand for computing infrastructure, particularly large data centers equipped with powerful processors and specialised AI chips.
These facilities require enormous amounts of electricity to operate servers, networking equipment and cooling systems around the clock.
However, electricity infrastructure has struggled to keep pace with the industry’s expansion.
In many locations, companies seeking to establish new data centers face lengthy waiting periods before utilities can provide the additional electricity they need.
Northern Virginia, one of the world’s most important data center markets, illustrates the scale of the problem.
According to the International Energy Agency, securing a 100-megawatt grid connection in the region can take approximately seven years.
For technology companies operating in a highly competitive AI market, waiting that long could mean losing valuable opportunities to competitors.
This has encouraged operators to explore alternative energy solutions that allow them to generate electricity independently rather than relying entirely on public utility networks.
Why AI Companies Are Converting Old Jet Engines Into Power Generators
One of the most unusual solutions involves taking engines from retired aircraft, rebuilding them and modifying them to operate using natural gas.
These converted engines are then incorporated into turbine-based power generation systems capable of supplying electricity directly to data centers.
The main attraction is speed.
Unlike conventional power infrastructure projects, which can require years of planning, approvals and construction, converted jet-engine systems can potentially be installed and operational within a much shorter period.
Audun Martinsen, an analyst at Rystad Energy, explained the motivation behind the technology in comments reported by The New York Times.
According to Martinsen, the priority for companies is getting electricity as quickly as possible.
He suggested that using jet-powered generation units could allow a data center to become operational within approximately 24 months.
That timeline represents a significant advantage compared with the lengthy grid connection process facing some operators.
Although converted aircraft engines are not necessarily intended to serve as permanent power infrastructure, they offer a practical way for companies to overcome immediate electricity shortages.
xAI Uses Eight Converted Jet Engines to Power Its Memphis Data Center
Elon Musk’s artificial intelligence company, xAI, is among the businesses already using converted jet-engine technology.
According to The New York Times, the company installed eight converted jet-engine turbines in Mississippi to help provide electricity for its Colossus 2 data center in Memphis, Tennessee.
The installation was identified through state permits and satellite imagery cited in the report.
The units are supplied by ProEnergy, a company that specialises in rebuilding and converting aircraft engines for electricity generation.
The systems use a GE engine commonly found in Boeing aircraft, repurposing aviation technology for the energy-intensive requirements of AI infrastructure.
The development demonstrates how technology companies are increasingly willing to consider unconventional power generation methods to support their expanding computing operations.
For xAI, securing additional electricity is particularly important as it continues developing the infrastructure required to operate large-scale AI models.
The use of converted aircraft engines reflects the broader pressure facing AI companies as demand for computing capacity continues to increase.
OpenAI Also Turns to Natural Gas Turbines for Its Stargate Project
xAI is not the only major AI company exploring gas-powered electricity generation.
In 2025, OpenAI also moved towards using gas turbines at its first Stargate data center site in Abilene, Texas.
The project is part of the company’s broader effort to develop large-scale computing infrastructure capable of supporting advanced artificial intelligence systems.
Crusoe, a Denver-based technology startup specialising in AI data center development, is constructing the Abilene campus.
In April, Crusoe ordered 13 converted turbine units from ProEnergy to support the project’s electricity requirements.
The order further highlights the growing role of alternative power generation technologies in the development of AI infrastructure.
Rather than waiting exclusively for traditional utility connections, companies are increasingly considering on-site electricity generation as a way to accelerate construction and operations.
This approach could become particularly attractive in regions where electricity infrastructure is struggling to accommodate the rapid arrival of large data center projects.
Crusoe Abandons $1.25 Billion Turbine Deal With Boom Supersonic
Crusoe’s approach to power generation has also involved other unconventional turbine technologies.
In September, the company withdrew from a $1.25 billion agreement to purchase 29 natural gas turbines from Boom Supersonic.
Boom Supersonic is a startup developing a supersonic passenger aircraft that has also begun marketing a version of its jet engine as a power generation solution for data centers.
The proposed arrangement represented a significant opportunity to bring aviation-derived engine technology into the rapidly expanding energy market for artificial intelligence.
However, Crusoe ultimately walked away from the agreement.
At the time, a company spokesperson told TechCrunch that Crusoe remained committed to using turbines despite ending the proposed purchase.
The decision does not necessarily indicate that the company is abandoning turbine-based electricity generation. Instead, it highlights how rapidly companies are evaluating different technologies and suppliers to meet their energy requirements.
Trump Administration Encourages Data Centers to Generate Their Own Power
Government policy is also contributing to the growing interest in independent electricity generation.
The Trump administration has been encouraging data center operators to produce their own electricity rather than relying entirely on existing public power infrastructure.
The approach reflects growing concerns about whether traditional electricity networks can accommodate the enormous energy requirements associated with artificial intelligence.
As major technology companies announce increasingly ambitious infrastructure investments, pressure on electricity providers continues to increase.
Encouraging data centers to generate their own power could help reduce some of the immediate pressure on public grids while allowing new facilities to become operational sooner.
However, this approach also raises questions about fuel consumption, emissions, environmental regulation and the long-term sustainability of powering AI infrastructure with fossil fuels.
Converted Jet Engines Have Major Efficiency and Environmental Drawbacks
Despite their speed and flexibility, converted aircraft engines are not without disadvantages.
According to The New York Times, these systems are less efficient and produce more pollution than turbines specifically designed for conventional natural gas power plants.
Their lower efficiency also means operators need more units to generate the same amount of electricity.
This creates additional challenges involving fuel consumption, operating expenses, emissions and the physical infrastructure required to accommodate multiple generators.
While converted engines may provide a useful short-term solution, their disadvantages could become more significant as companies begin focusing on long-term operating costs and environmental performance.
Some experts believe that efficiency and environmental considerations could become increasingly important over the next year or two.
As a result, the technology may serve primarily as a temporary bridge while companies wait for conventional electricity infrastructure and more efficient power generation systems to become available.
For AI operators, the decision involves balancing the immediate need for electricity against the long-term costs of maintaining less efficient power systems.
The AI Boom Is Creating a New Battle for Electricity
The growing use of converted jet engines reflects a major shift in the artificial intelligence industry.
Until recently, much of the competition between AI companies focused on computing chips, software capabilities and access to advanced models.
Now, electricity has become another critical resource determining how quickly companies can expand.
A company may have access to powerful processors, advanced technology and billions of dollars in investment, but without sufficient electricity, its data centers cannot operate at their intended capacity.
This is why businesses such as xAI, OpenAI and Crusoe are exploring alternative energy arrangements.
The increasing demand for electricity could also create opportunities for energy companies, turbine manufacturers and businesses capable of developing faster power generation solutions.
However, the long-term challenge will be finding ways to supply AI infrastructure with enough electricity without creating excessive costs or environmental damage.
Converted jet engines may help companies overcome immediate power shortages, but they are unlikely to eliminate the underlying need for major investments in electricity generation and grid infrastructure.
For now, the message from the AI industry is becoming increasingly clear: access to computing power is no longer the only requirement for staying competitive. Having enough electricity to run that computing infrastructure is just as important.
Disclaimer: This article is intended for general informational and educational purposes. The information is based on the supplied report and attributed statements. Project developments, technology deployments, energy costs and regulatory conditions may change. The discussion should not be interpreted as investment, financial or technical advice.
