KEY POINTS
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FTAI Aviation is converting retired CFM56 jet engines into 25-megawatt natural gas turbines to address electricity bottlenecks in hyperscale AI data centers, with production set to start in 2026.
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These aeroderivative turbines offer fast deployment, modular design, and granular control, making them ideal for bridging grid capacity gaps and meeting the growing power demands of AI hyperscalers.
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The rise of on-premises power islands and alternative energy solutions, such as aeroderivative turbines, is reshaping data center construction, requiring tighter coordination, new site-planning considerations, and evolving risk management.
Jet Engines Become Grid Resources
FTAI Aviation believes that retired and near‑retirement jet engines could help solve one of the biggest bottlenecks in the artificial intelligence boom by providing electricity to data centers.
The company announced in December 2025 the launch of FTAI Power, a platform to convert CFM56 aircraft engines into 25‑megawatt natural‑gas aeroderivative turbines aimed at AI and cloud data center loads, with commercial production expected to begin in 2026, according to FTAI Aviation.
Aeroderivative turbines are lightweight, modular gas turbines derived from aircraft engines, optimized for high efficiency and rapid start-up. They can provide flexible power generation for a variety of power needs.
FTAI Aviation, based in NY, is a full-service provider of aftermarket power and maintenance for commercial jet engines. Shown is an image of a CFM56 jet engine from its website. Image: FTAI Aviation
The CFM56 is the world’s most widely used commercial aircraft engine, with more than 34,000 units delivered, according to CFM Aeroengines, the engine’s manufacturer.
FTAI said in a statement that it controls more than 1,000 CFM56 engines and operates over 1 million square feet of maintenance, repair, and overhaul facilities worldwide, giving it both a supply of jet engine cores and an in‑house service network.
Under the program, those engines will be converted into land‑based power units rated at roughly 25 megawatts each. That smaller block size, compared with large heavy‑duty gas turbines, is designed to give grid operators and data center owners more control over how and where they add capacity, according to the company.
Scalable and Flexible Solution
FTAI expects its factories to be capable of producing more than 100 units a year once the program is fully ramped, equivalent to about 2.5 gigawatts of new generation capacity annually at 25 megawatts per unit, according to company projections.
“The CFM56 engine market is the largest and most reliable in the world, making it an ideal candidate for aeroderivative conversion, which will further extend the engine’s life,” said Joe Adams, Chairman and CEO of FTAI Aviation.
“At FTAI, we have over one million square feet of maintenance facilities globally and billions of dollars of engines, which we believe gives us unrivaled capabilities.”
“After over a year in development, we plan to begin production of the FTAI Power aeroderivative using our proprietary conversion architecture, offering the market an alternative to address the unprecedented need for electricity,” Adams added.
David Moreno, Chief Operating Officer, added, “The accelerating demand from AI hyperscalers has created an urgent need for immediate power solutions. We believe FTAI Power will be a critical partner for the AI economy, which requires unparalleled amounts of electricity faster and in a more flexible format.”
How Jet Engine Conversions Work
FTAI Power’s process involves reconfiguring the core of a CFM56 jet engine into a compact power plant. Engineers replace the aviation fuel system to enable the engine to burn natural gas instead of jet fuel and swap out the large front fan for hardware designed to drive an electrical generator.
The result is an aeroderivative gas turbine that can start quickly, cycle flexibly, and fit on a relatively small pad footprint.
According to the company, a single engine can be converted in 30 to 45 days. These turbines are expected to operate for many years in power generation, even after their aviation lifecycle ends, effectively recycling high-value aviation assets into the energy sector.
Readers may recognize the CFM56 jet engine from their air travel experiences. Introduced in the 1980s, its manufacturer states that over 34,000 engines have been delivered, logging over 1.3 billion flight hours. The jet engine is seen in this image on an aircraft from the Boeing Next-Generation 737 Family. Image: CFM Aeroengines
Power Needs Driving Innovation
The rapid growth of AI and cloud computing is straining the global electricity supply. According to the International Energy Agency, global data center electricity use is expected to more than double by 2030.
However, utilities face multi-year timelines to approve and build new generation and transmission infrastructure, creating a gap between data center readiness and grid capacity.
This map displays the regional distribution of total potential data center construction start values across the four US census regions over the next 6 months. Image and Data powered by ConstructConnect Project Intelligence
ConstructConnect Project Intelligence (CCPI) is tracking 76 data center projects, totaling over $88 billion, in various stages of preconstruction, with start dates in the next six months, according to the February Data Center Report.
Aeroderivative turbines, such as those from FTAI Power, offer a possible solution. They can be deployed as modular blocks near data centers, serving as interim “bridge” power until permanent grid upgrades are completed or as long-term peaking and backup capacity. These turbines may be suitable for data center operators who need prompt, reliable power to keep up with demand.
What Does It Mean for Construction?
For the construction sector, the rise of jet engines for power is a sign of electricity as a binding constraint on data center growth.
ConstructConnect and other analysts have highlighted how data center and power infrastructure projects are increasingly intertwined, with some large campuses adding dedicated onsite generation to secure capacity and manage reliability risks.
As more owners explore aeroderivative gas, small modular reactors, and other non-traditional sources, on-premises power islands could become a more common feature of hyperscale sites.
This shift carries practical implications for general contractors, construction trades, and building product manufacturers:
More complex sites
Jet engines are elaborate machines. Projects that combine high-density computing, gas turbines, and grid interconnections will demand tighter coordination among civil, mechanical, electrical, and utility contractors.
New site-planning constraints
Turbine pads, fuel supply, exhaust stacks, noise abatement, and emissions controls introduce new design and permitting considerations, alongside support components such as racks, cooling, and battery systems.
Evolving risk profiles
As owners experiment with alternative power technologies, contractors may face changing contract structures, warranty expectations, and performance guarantees.
Where are the Customer Orders?
As of the launch announcement, FTAI had not disclosed any signed commercial orders for its FTAI Power units, according to the company statement. The business still must prove its ability to scale manufacturing, ensure long-term reliability, and gain broad customer adoption.
Still, for data center developers searching for fast, modular power and for construction firms watching power constraints reshape project design, FTAI’s move signals how far and how quickly the AI buildout is pushing the boundaries between energy and construction.
A New Era for AI Power
FTAI Power’s launch signals a significant shift in how industries are addressing the growing electricity demands of AI and cloud computing. By repurposing the world’s most widely used aircraft engine, FTAI is not only extending the lifecycle of high-value aviation assets but also providing a scalable, flexible solution to one of the most pressing challenges in the AI economy.
As the program ramps up, it could reshape the intersection of aviation, energy, and construction, offering new opportunities for data center developers, contractors, and building product manufacturers alike.
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