Retired aircraft engines are being converted into generators for AI data centres, offering developers another way to get power while grid connections lag. AeroTime reports that FTAI Aviation has contracts for more than 100 CFM56-based generators, with deliveries planned for customers in the US and Canada in 2027 and 2028.
Watch Desk analysis
What happened
The AeroTime report describes a growing market for repurposing retired turbine engines as on-site data-centre power. FTAI’s Mod-1 generator uses the core of a CFM56, an engine widely flown in commercial aviation. The company says tests at its Miami facility met targets of 23 megawatts continuous output and 25 megawatts at peak, using natural gas and liquid fuel.
AeroTime also reports that an unnamed cloud computing company ordered $1.465 billion of generators in July through FTAI’s joint venture with Jereh Group, with deliveries expected in batches through November 2027. Separately, the article says xAI has installed eight converted aircraft turbines in Mississippi, citing state permits and satellite imagery. Boom Supersonic is developing a 42-megawatt natural-gas turbine for data centres; Crusoe has ordered 29 units, with first deliveries targeted for mid-2027.
Why it matters
AI data centres need a great deal of electricity, and a long wait for a grid connection can delay bringing computing capacity online. Reusing engines already built for aircraft offers one route to generating power on site. It also puts data-centre developers into competition with aviation businesses that use retired engines for spare parts or to keep other aircraft flying.
These projects are not all at the same stage: some involve tests or future delivery plans, while the article says xAI’s turbines are installed. That matters when judging how much new capacity is actually available, rather than merely ordered.
Our read
This is a concrete sign that the AI infrastructure race is drawing in industries far beyond chips and server racks. Repurposed engines may help developers move faster, but the next useful numbers are how many units arrive, how reliably they run, and what fuel and emissions accompany their output. “Power on site” is a solution to one bottleneck, not a magic trick that makes the electricity supply question disappear.
What to watch
- Whether FTAI’s contracted generators arrive on schedule in 2027 and 2028.
- Whether the reported output targets translate into sustained operation at customer sites.
- How much of the new demand competes with aviation’s need for serviceable engines and parts.
- Whether Boom and Crusoe meet their planned mid-2027 delivery timetable.
Discussion spark: Should AI data-centre developers be allowed to use fast-deployed on-site generators, even when they rely on fossil fuels, or should they wait for cleaner grid power?
Sources and evidence
- Source update (5 November 2026, 00:43 UTC)
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