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

Enverus acquires A2D well log library from TGS, connecting subsurface data to energy decision workflows
News Release
ByJon Haubert

Enverus acquires the world's largest well log library from TGS, connecting three decades of subsurface data, formation tops and petrophysics to production, completions and economics workflows.

U.S. natural gas prices face power demand drag
News Release
ByJon Haubert

Enverus Intelligence Research says U.S. natural gas prices face pressure as power demand underperforms, while LNG exports remain the key offset to resilient supply.

Enverus ranks top U.S. private E&P operators
News Release
ByJon Haubert

Enverus released its annual Top 100 Private E&P Operators list, ranking U.S. private oil and gas producers by production, well count and rig activity.

Enverus acquires PDS exchange assets, expanding its operating network across U.S. energy markets
News Release
ByJon Haubert

Enverus acquires four PDS Energy Information exchange platforms, expanding secure data exchange for completions, well, production and water data.

800 VDC rewrites AI data center power economics
News Release
ByJon Haubert

Enverus Intelligence® Research analyzes how 800 VDC architecture could lower AI data center electrical capex, improve facility efficiency and reduce copper intensity.

Enverus cuts U.S. EV adoption forecast due to federal policy changes and slower market growth
News Release
ByJon Haubert

Enverus Intelligence® Research’s latest EV forecast shows how slower U.S. adoption after federal tax credit changes shifts grid load timing, regional ISO exposure and ICE vehicle displacement through 2035.

At the cap, below CONE Why PJM’s capacity market needs a reset
News Release
ByJon Haubert

Enverus Intelligence® Research finds PJM’s current capacity market may not support financeable new gas generation at today’s capital costs. The report analyzes the capacity-price levels and bilateral contract structures needed to make new CCGT projects viable.

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...

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?