Datacenters Repurpose Reciprocating Engines For 4+ GW Prime Power By 2028
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We at SemiAnalysis undertook a detailed modelling exercise of US grid constraints, showing that existing headroom will be exhausted by 2027/28, and planned utility-scale generation through 2030 will not be sufficient to meet load growth. (2/3)
Datacenters have always kept reciprocating engines on site as emergency standby, kicking in when the grid drops and running a handful of hours a year. That role is changing, as recips are increasingly being repurposed to prime power, energizing datacenters around the clock. We estimate that recip OEMs (e.g., Caterpillar, INNIO, Cummins) have been contracted to supply ~1 GW of BTM power this year, and 4+ GW in each of 2027 and 2028. Our SemiAnalysis Energy Model tracks these BTM contracts OEM-by-OEM, project-by-project. Yet, that is dwarfed by the opportunity to come. (1/3)🧵