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In the NewsSep 28, 2026 • 6 min read

Dash for small gas turbines set to impact data center costs

Sales of small gas turbines are surging as data center builders prioritize speed, raising long-term power costs and emissions.

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Neil Ford & Robin SaylesReuters Events Renewables
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Dash for small gas turbines set to impact data center costs
Image: REUTERS/Ronald W. Erdrich USA TODAY NETWORK via Imagn ImagesReuters Events

insightsKey Architectural & Market Takeaways

  • check_circle29.6 GW of behind-the-meter gas generation planned through 2030, with data centers driving 88% of demand.
  • check_circleLead times for large CCGT units stretch to 6 years, driving rapid adoption of modular aeroderivative and reciprocating gas engines.
  • check_circleCapital costs per MWh can be up to 50% higher for smaller turbines, but speed to power justifies the premium for AI developers.
  • check_circleHybrid behind-the-meter systems combine modular gas turbines with battery storage for immediate load serving and future merchant grid monetization.
Primary Source ReferenceDash for small gas turbines set to impact data center costs
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