Featured Professionals: Jenson Dunn, Chris Smith, Matt White

The proliferation of AI and advanced computing is driving an expansion in data center capacity, creating a critical bottleneck: reliable, immediate power. As power demand continues to accelerate, the gas turbine and reciprocating engines market is evolving from a relatively quiet sector into a compelling investment opportunity.

Here, we highlight what’s driving growth for companies across the gas turbine ecosystem, including manufacturers, engineered products and components, and specialized repair and maintenance providers.

A Power Supply-Demand Imbalance

The data center market is expanding to keep pace with tremendous demand for computing, which requires urgent access to stable power.

Source: Harris Williams Intelligence

However, data center developers are facing long utility interconnect queues, forcing a shift toward building on-site power generation to bridge the gap until grid connectivity is established.

Source: U.S. Department of Energy

As a result, data center operators and power equipment manufacturers are insourcing prime power generation using gas turbines and other alternative energy sources to bypass long grid interconnection queues. In fact, as of early 2026, leading manufacturers have secured significant backlogs for gas turbine power for data center projects.

Source: Public Company Filings

“Data centers have a significant and unmet need for behind-the-meter power, creating a boost in demand for a whole ecosystem of companies supporting power generation that should stretch over the long term. This burgeoning space is a compelling way for investors to participate in AI and data center trends, with many types of businesses set to benefit for many years to come—from manufacturers of products and components to service providers.”

- Jenson Dunn, Managing Director, Industrials

“Power needs are rapidly growing due to data center proliferation, EV adoption, and ongoing industrial and building electrification. Power generation leaders that can support these critical applications with constant, reliable power will remain in demand and on investors’ radar.”

- Matt White, Managing Director, Energy, Power & Infrastructure

A prime example is the aerospace engine supply chain, which is finding its way into data center power generation applications in meaningful ways.

“Commercial aero and industrial gas turbine engines share common architecture, materials, and performance requirements. And with commercial aerospace build rates climbing back toward pre-pandemic highs, data center power demand is now competing for an overlapping pool of precision-engineered components and manufacturing capabilities. The result is a supply chain where two high-growth end markets are drawing from the same specialized suppliers, creating an exceptional window for well-capitalized providers with the capacity and technical expertise to capture growth across both areas.”

- Chris Smith, Managing Director, Aerospace, Defense & Government Services

M&A Proof Points

Strategic and private equity buyers are beginning to consolidate the gas turbine and aerospace supply chains, establishing dual-purpose platforms that can better capitalize on data center power demand.

Strategic Consolidation Examples

• GE Vernova acquired Woodward’s gas turbine business to bolster its internal component capabilities.

• Howmet Aerospace acquired Consolidated Aerospace Manufacturing to expand its engineered product footprint.

• Siemens Energy acquired RWG to strengthen its service and maintenance offerings.

Private Equity Examples

• JLL Partners acquired PowerParts Group which specializes in aftermarket turbine parts.

• Capstreet acquired TOPS Field Services, a company focused on turbine maintenance.

• One Equity Partners acquired majority ownership from the Wood Group of Ethos Energy.

• Tuckerman Capital successfully exited TRS Services, another turbine equipment service provider, to Battle Investment Group.

• Warren Equity Partners acquired Allied Power Group, a provider of aftermarket repair, field service, and parts for power generation assets.

Select Opportunities

To further discuss actionable M&A opportunities within the gas turbine ecosystem, contact our senior professionals.