Flexible Engines Could Power Off-Grid Data Centers

A Wärtsilä scenario study projects EUR 196 billion in savings over 20 years against gas turbines, a research-stage estimate.

Updated on Nov. 2, 2026 in Data Centers

Flat, bold-outlined vector editorial illustration of a squat industrial engine generator beside a plain cylindrical exhaust stack, set against open space.
Wärtsilä has published a study proposing flexible engines to power off-grid data centers, projecting EUR 196 billion in savings over 20 years against gas turbines. AI Illustration. Upload story photo >

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Wärtsilä has published a study modelling flexible engines to power off-grid data centres, rather than combined-cycle gas turbines (CCGTs). The study is a research-stage scenario analysis built on third-party forecasts, not a deployed system.

Why it matters

Onsite power lets developers avoid lengthy grid connection queues, which is a major constraint on AI-driven data centre growth. The study frames engine-based generation as a way to pair that growth with grid balancing as renewables expand.

The modelled savings rest on a 55 GW off-grid demand scenario and a 20-year horizon, compared against CCGT-based supply. The study also estimates up to EUR 200 billion in avoided balancing capacity costs and recovered heat meeting about 10% of European space heating demand, though these projections are not yet validated by deployment.

The players

Wärtsilä

Finnish engineering group whose flexible combustion engines and energy storage systems are used for backup and grid-balancing power.

BloombergNEF

Bloomberg's energy research unit, whose data centre demand outlooks were used as third-party inputs to the study.

The details

Flexible engines act as reliable backup when data centres are on the grid and help smooth fluctuations in wind and solar output once connected. Engine-based systems need less generating equipment and battery energy storage to meet the same demand than gas turbine plants do. The study also proposes that waste heat from these facilities could feed district heating networks, supplying homes and businesses.

Timeline

  1. 2035: the scenario's target year for 55 GW of global off-grid data centre capacity.

  2. Over the next 20 years: the period across which the EUR 196 billion savings estimate is calculated.

The Tech Race

The study builds on BloombergNEF's outlooks projecting global data centre capacity to almost triple by 2035. It positions engine-based onsite generation as an alternative to the gas-turbine plants typically proposed for such loads.

Developers facing grid connection delays could use onsite engine plants to bring data centres online sooner, though the study does not give availability or pricing. Any practical effect for users depends on whether developers adopt these configurations, which remains unconfirmed.

The takeaway

Watch whether developers commit to engine-based onsite power for off-grid data centres as grid queues lengthen. The study's 55 GW by 2035 scenario is the benchmark to check against actual off-grid capacity additions in that period.

Further reading

For more on how facilities like these are being built and powered, see the Data Centers section.

Source note: This article includes information reported by Green Building Africa.

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Do you expect data centres in your area to lower or raise your electricity bills?