Key facts
- SpaceX is building a factory in Bastrop, Texas, to produce turbine blades.
- Elon Musk stated that gas turbines are "sold out through 2030."
- Bringing turbine production in-house could reduce delivery times by up to 18 months.
- Data center operators are using steam turbines and on-site boilers to bypass gas turbine order backlogs.
- Applied Digital CEO Wes Cummins noted that gas turbines ordered now might not arrive until 2032.
- Babcock & Wilcox agreed to supply 1.2 GW of generation for Applied Digital's AI campuses, with operations targeted for 2028.
Elon Musk has indicated that gas turbines are "sold out through 2030," prompting SpaceX to establish a factory in Bastrop, Texas, dedicated to producing turbine blades in-house. This move aims to shorten gas turbine delivery times by as much as 18 months. The shortage is impacting data center operators, with Applied Digital CEO Wes Cummins noting that new gas turbine orders might not be fulfilled until 2032. As a workaround, some operators are opting for steam turbines and on-site boilers, which have more established supply chains. Babcock & Wilcox has secured a $2.4 billion agreement to provide 1.2 GW of steam turbine generation for Applied Digital's AI campuses, with operations expected to commence in 2028. While natural gas remains a prominent power source for data centers, the long-term goal for many hyperscalers is to transition to renewable and nuclear energy.