Gas Turbine Shortage Pushes AI Firms to Steam Power as Tesla Eyes In-House Production

Key Facts

1Elon Musk warned that gas turbines are sold out through 2030 due to global casting capacity bottlenecks.

2Tesla and SpaceX plan to manufacture turbine blades internally to bring power online up to 18 months sooner.

3Applied Digital's CEO stated that new gas turbine orders might not be delivered until 2032.

Amidst the aggressive race to secure power for AI data centers, the sector faces a severe supply chain crisis that could stall digital expansion for years. Elon Musk has warned that gas turbines are effectively sold out through 2030 due to global bottlenecks in specialized casting capacity, prompting Tesla and SpaceX to plan internal manufacturing of turbine blades to bring power online up to 18 months sooner. According to reports, this shortage is forcing developers to pivot toward older steam turbine and boiler technologies which benefit from more established and scalable supply chains.

These strategic shifts highlight the operational pressures on AI infrastructure firms, with Applied Digital's CEO stating that new turbine orders might face delivery delays until 2032. Per market data, investors are closely tracking firms involved in alternative power solutions; Tesla (TSLA) closed at $365.44, while Applied Digital (APLD) stood at $26.42 as of September 11, 2026. The move toward vertical integration aims to bypass the three global casting companies that currently dominate the production of specialized alloys required for high-heat gas turbines.

Traders should watch for milestones in in-house manufacturing capabilities as a key catalyst for future growth. SPCX closed at $151.21 (as of September 11, 2026), while the market remains sensitive to any updates regarding heavy equipment delivery schedules. Looking at the upcoming calendar, there are no immediate high-impact energy sector events, leaving the focus on corporate communications from big tech regarding autonomous energy solutions.