The broader energy sector is scrambling to find alternatives as data center demand outpaces the availability of industrial-grade hardware. While gas turbines remain the industry standard for high-temperature efficiency, their manufacturing complexity has created a massive supply bottleneck. In response, operators like Applied Digital are pivoting to steam turbines paired with industrial boilers—a setup that sidesteps the gas turbine shortage by utilizing a more mature, accessible supply chain.

This shift is already reshaping the market. Babcock & Wilcox recently secured a $2.4 billion deal with Base Electron to provide 1.2 GW of generation capacity for AI campuses, utilizing boiler-based power plants slated for 2028 operations. While hyperscalers frame natural gas as a temporary bridge toward a 100% renewable or nuclear-powered future, the immediate reality for firms like SpaceX and Tesla is a desperate race to secure the physical hardware required to keep the lights on.