How do you train ever-larger AI models when the local utility can�t hook you up for years? Increasingly, you bring your own power? Developers are installing aeroderivative turbines�jet engines adapted for the ground�and even diesel generators to run new data centers while they wait in interconnection lines that can stretch up to seven years?
From backup to baseload
Manufacturers report a surge in orders as AI demand outpaces the grid? GE Vernova said orders for its aeroderivative units rose by about a third through the first three quarters of 2025, with CFO Ken Parks calling them �bridge power supporting data centre needs?� ProEnergy has sold more than 1 GW of 50 MW jet-derived turbines, some adapted from Boeing 747 engine cores, emphasizing speed to deploy? Cummins says it has sold over 39 GW worth of power to data centers and has nearly doubled capacity this year�signaling a shift from generators as mere backup to on-site primary power?
The scale is stark? Crusoe is buying GE Vernova turbines expected to deliver nearly 1 GW to the Stargate AI campus in Abilene, Texas, serving OpenAI, Oracle, and SoftBank? Boom Supersonic, backed by Sam Altman, struck a deal to sell Crusoe another 1?2 GW of turbines that are �virtually identical� to those built for its aircraft�funding its jet ambitions while feeding the AI buildout?
The tab�and the backlash
On-site fossil generation rarely beats utility economics? BNP Paribas modeled power at $175/MWh for a behind-the-meter gas plant in Ohio serving Meta�roughly double typical U?S? industrial rates? And emissions are higher than modern utility-scale generation? �In almost all cases I can imagine, emissions are going to be much worse for data centres powered by on-site fossil-based generation,� said Mark Dyson of the Rocky Mountain Institute?
Yet political signals are mixed? The EPA has permitted more generator use to keep data centers stable, Virginia regulators are considering expanded diesel runtime in �data center alley,� and U?S? Energy Secretary Chris Wright even floated dispatching existing backup generators at data centers during grid shortfalls? Meanwhile, community opposition is rising? In 2025 alone, at least 142 groups across 24 states have organized against data center expansions, helping block or delay roughly $64 billion in projects, according to TechCrunch reporting�often citing higher electricity bills and local subsidies for hyperscale campuses?
Two strategies emerge: burn now or build clean
The short-term play is clear: small gas and diesel units get AI clusters online quickly? But the long game is shifting toward co-locating data centers with dedicated, utility-scale clean energy? Alphabet moved decisively in that direction, agreeing to acquire Intersect Power for $4?75 billion to develop renewable-rich data parks designed to plug straight into new loads? �Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load,� CEO Sundar Pichai said? TechCrunch reports the first campuses could be online late next year, with full buildouts into 2027?
This bifurcation�bridge hydrocarbons vs? integrated renewables�may define hyperscale strategy through the decade?
Will hydrocarbons handicap U?S? AI?
There�s a macro risk? The International Energy Agency expects global data center electricity demand to more than double from about 460 TWh in 2024 to over 1,000 TWh by 2030, continuing higher by 2035? The Financial Times notes that in the U?S?, data centers could drive nearly half of electricity demand growth this decade, with more than half of their power still fossil-based until after 2030? Layer on rising power prices (up roughly 38% since 2020) and water stress near many campuses, and the nation�s hydrocarbon-heavy bridge strategy could erode long-term competitiveness, particularly if rivals scale renewables faster?
What it means for operators and investors
- Budget for premium power: Behind-the-meter gas can run near $175/MWh; diesel is higher? The trade-off is speed and control?
- Expect regulatory volatility: Some states may loosen generator rules in the near term, but emissions scrutiny and permitting risk remain?
- Secure multi-pronged supply: Combine temporary on-site generation with long-duration PPAs and, where possible, vertically integrated clean energy�mirroring recent M&A moves?
- Mind local politics: Protests are organized, resourced, and winning; community benefits and transparency now factor into project timelines as much as GPUs?
The question is no longer whether AI has an energy problem? It�s whether the sector will build its future on borrowed megawatts�or invest fast enough to own the solution?