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

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:

Members of the media are invited to attend these upcoming webinars for insights into leading Power & Renewables topics:

  • Predict RTC+B Market Dynamics With Enverus Forecasting Models
    Dec. 2, 2025 at 2:00 p.m. CT
    Gain a clear picture of RTC+B’s rollout and its ripple effects across ERCOT. Learn how RTC+B may shift market dynamics and trading behavior, impact dispatch patterns and pricing signals, and what strategies can help prepare for potential volatility and grid changes. Register Here.
  • 2026 Power and Renewables Outlook
    Dec. 16, 2025 at 10:00 a.m. CT
    U.S. power demand is breaking records, capacity markets are hitting price ceilings, and 90% of new builds are renewables—but firming capacity is falling short. Explore what’s driving record demand, how the grid is adapting, the implications of PJM’s latest auction hitting the ceiling, and smart strategies for 2026 including storage and flexible demand. Register Here.

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.

Picture of Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

ERCOT Large Load Batch Zero Readiness
News Release
ByJon Haubert

Enverus Intelligence® Research analyzes ERCOT’s Batch Zero large-load qualification, estimating that 55 projects (21.7 GW) are positioned to meet the July 15 requirements while 62 projects (37 GW) are likely deferred to Batch 1+. The report outlines key deadlines, financial-security...

What’s next for the Strait of Hormuz?
News Release
ByJon Haubert

Enverus Intelligence® Research’s latest Strait of Hormuz outlook highlights a stocks-driven “higher for longer” setup, modeling OECD crude and product inventories falling from 2.82 Bbbl (YE25) to a 2.36 Bbbl trough in Q4 2026. The report also flags a potential...

Let’s make a deal Brent upgraded, Henry Hub downgraded
News Release
ByJon Haubert

Enverus’ latest Fundamental Edge report, “Let’s Make a Deal | Brent Upgrade, Henry Downgrade,” raises its 2H26 Brent forecast to $110/bbl on a late-June deal and gradual Strait of Hormuz reopening while maintaining a capped summer Henry Hub outlook and...

Class VI approvals build, submissions slow
News Release
ByJon Haubert

Enverus Intelligence® Research’s Class VI Update 1Q26 finds approvals building while submissions slow: three final permits issued in 2026 so far, five draft permits in 1Q26, and active Class VI injection capacity at 5.2 mtpa with forecasts above 100 mtpa...

The Binding Constraint From EUV Machines to Megawatts
News Release
ByJon Haubert

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,...

Time-to-power gap Big generation’s Achilles’ heel in the AI data center race
News Release
ByJon Haubert

AI-driven data center demand is shifting power markets as faster-to-deploy distributed solutions outpace grid infrastructure; Enverus details the time-to-power gap.

Northern Bets On Canada with Parallax Stake
Analyst Takes News Release
ByAndrew Dittmar

Enverus analysts break down Northern Oil and Gas’ Parallax stake and what it reveals about cross-border capital flows and Canada’s competitive energy assets.

Qatari LNG outage shifts global gas market into structural deficit
News Release
ByJon Haubert

Qatari LNG supply disruptions could shift global gas markets into a structural deficit through 2030, with elevated TTF and JKM pricing, intensified Europe-Asia LNG competition and increased strategic value for Pacific-facing export projects, according to Enverus Intelligence® Research.

U.S. electrification will add 24 GW of power load by 2035
News Release
ByJon Haubert

U.S. electrification will add ~24 GW of power load by 2035, led by industrial demand and heating transitions, with growth concentrated in PJM, MISO and NYISO, according to Enverus.

Find Out How Enverus Can Help Your Business
Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Sign up for our Blog

Ready to Subscribe?

Ready to Get Started?