BUSINESSBATON ROUGE BUSINESS REPORT
AI data center boom creates an unlikely winner: The small-engine maker
The rapid expansion of AI data centers is driving unexpected demand for reciprocating internal combustion engines due to delays in utility grid connections and large gas turbine deliveries. Operators are opting for on-site natural gas generation using these engines, benefiting manufacturers like Caterpillar, Innio, and Rolls-Royce despite their lower efficiency and higher emissions compared to alternatives.
Mentioned
Related Signal
Adjacent reporting
- GE Vernova Shares Climb on Strong Orders, Power Demand Boom
- AI boom: Demand for data centers drives innovation by energy, tech industries to produce new power sources
- Greenhouse gases from data center boom could outpace entire nations
- How GE Vernova builds the massive gas turbines powering the AI data center boom
- Thirsty and power hungry: Australia is in the middle of a datacentre boom – but not everyone is convinced
- Elon Musk’s xAI adds more unpermitted gas generators for data centers