Musk was one of the first to deploy “portable” power generators to power a data center, allowing him to bring the Colossus data center in Memphis, Tennessee, online in record time . Note that these mobile generators aren’t small devices — they’re massive units about the size of one trailer and may also include another trailer or two of other necessary parts and accessories to run it (not including the tank needed for its fuel). OpenAI followed suit a few months later, announcing it will deploy turbines at the first Stargate data center to deliver additional power.
This sudden influx of demand has led to jet engine shortages for data center operators. Beyond the fact that engine manufacturers weren’t prepared for the AI boom, commercial aviation has already been suffering from its own shortages due to supply chain and engine design issues even before data center developers started buying up turbines.
SpaceX and Tesla are each building 100GW/year of solar production capacity as fast as possible, but natural gas will still be needed to supplement and bootstrap solar for several years. The limiting factor for nat gas turbine production is casting the blades & vanes. By doing… August 29, 2026
Turbine blade and vane manufacturing is one of the biggest bottlenecks in jet engine production right now. The blades used in these engines are difficult to build, with one batch often requiring 60 to 90 weeks to produce from start to finish. That’s because these are specialized parts that are subjected to extreme forces and temperatures, especially in the core of the engine. Even if the engines that these blades will end up on are bolted to the ground or strapped to a trailer instead of hanging under the wing of an airliner, manufacturing them still requires the same level of care and precision.
Watch On Because of this, it seems that Musk wants to take things into his own hands by making SpaceX manufacture its own turbine blades. He says this move could cut deliveries by 18 months, allowing xAI to get brand-new turbine generators much faster instead of waiting behind a long queue expected to stretch into 2030.
SpaceX unveils 11-million-square-foot Gigasat factory, a new manufacturing facility for space-based data centers
Elon Musk spent $1 billion on an energy company to power xAI
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/data-centers/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/data-centers/spacex-starts-in-house-turbine-blade-manufacturing-to-boost-gas-powered-generator-output-for-elons-ai-data-centers-new-manufacturing-strategy-cuts-generator-delays-by-18-months#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.