News Release

Distributed generation: The turbines are coming

As tech giants power hyperscale data centers, EIR forecasts rapid growth in small-scale generation to meet demand

byEnverus
November 26, 2025

CALGARY, Alberta (Nov. 26, 2025) Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy SaaS company that leverages generative AI across its solutions, is releasing a new report analyzing how distributed generation is reshaping power supply for hyperscale data centers amid infrastructure bottlenecks. Wait times for large-scale gas-generating equipment now exceed five years, while smaller units such as aeroderivative turbines and fuel cells can be deployed in months.

“The inability of traditional infrastructure timelines to keep pace with hyperscale demand is accelerating adoption of distributed generation,” said Carson Kearl, senior analyst at EIR. “Our analysis shows tech giants are increasingly bypassing grid constraints with their own power solutions, creating a significant shift in market dynamics.”

Key takeaways:

  • Wait times for utility-scale gas-generating equipment from leading manufacturers exceed five years, delaying large projects.
  • Tech companies including Meta, Oracle and OpenAI are investing in behind-the-meter natural gas and fuel cell generation to power data centers.
  • Annual production of small-scale turbines and engines is projected to grow from 24 GW in 2024 to 27.4 GW by 2027.
  • Bridge capacity oversupply of 17.5 GW/year contrasts with forecasted incremental demand of ~7.5 GW/year from data center additions.

EIR’s analysis pulls from a variety of products including Enverus PRISM®, Enverus FOUNDATIONS® and Enverus Mosaic.

You must be an Enverus Intelligence® subscriber to access this report.

Additional Resources:

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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

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