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Wärtsilä said that developers are increasingly turning to onsite generation systems that can be deployed independently of utility interconnection timelines
In sum – what to know
Demand remains strong – Wärtsilä says data center activity is holding up, with new orders continuing to enter its pipeline.
Power timing matters – Off-grid generation is emerging as a significant avenue as data centers face long waits for grid connections.
Capacity stays tight – Wärtsilä is sold out for 2028 and is now selling capacity for 2029 and 2030.
Wärtsilä continues to see strong demand from the data center sector, with new orders entering its pipeline as customers look for power capacity amid constraints on grid connections.
Speaking during the company’s investor call, president and chief executive officer Håkan Agnevall said data center demand was “holding up” and that the company continued to take in orders, although there is normally a delay between signing orders and announcing them.
A key part of the data center opportunity is the growth of off-grid and behind-the-meter generation. Agnevall said estimates vary from 30% to 50% of new U.S. data center builds being off-grid or behind the meter, while stressing that nobody knows the exact figure. He nevertheless described it as a “significant growth avenue.”
Agnevall also discussed the possibility of data centers initially using off-grid generation before obtaining a grid connection six, seven or eight years later. He said some data center customers are already envisioning adding modules to their engine power plants once grid connections become available, allowing them to become an actor on the grid.
In that scenario, Agnevall highlighted fuel efficiency and flexibility as key requirements. He also said hyperscalers would want to increase their use of renewable energy over time, with engine power plants potentially providing balancing capacity.
Wärtsilä’s production capacity is already being sold several years ahead. Agnevall confirmed that the company is sold out for 2028 and is now selling capacity for 2029 and beginning to sell for 2030. He said the delivery window continues to move forward rather than reaching a point where customers stop accepting longer delivery times.
The company is also expecting a service opportunity from the data center plants. Agnevall said discussions on service contracts are already taking place with some customers that have placed new-build orders, with agreements expected relatively soon rather than after several years.
He described a range of possible arrangements, from technical service and maintenance to operation and maintenance agreements and, potentially, performance-based contracts.
Water consumption is another factor Agnevall highlighted. Wärtsilä uses a closed-loop cooling system, which he said requires only limited top-up water and consumes “thousands of times less water” than gas-turbine competition.
Overall, Agnevall said the company’s expansion is not being driven only by U.S. data centers. Balancing power, electrification, and demand in traditional markets are also contributing to the broader demand cycle. Wärtsilä therefore expects the fundamental trends supporting its expansion to continue beyond the current data-center cycle.
Rising AI infrastructure demand and ongoing grid interconnection delays are accelerating interest in behind-the-meter and off-grid power generation across the U.S. data center market, Sean Hughes, business development manager at Wärtsilä Energy, previously told RCRTech.
As hyperscale operators and AI-focused developers expand capacity requirements, access to reliable electricity is becoming a growing constraint in several U.S. markets. The issue is particularly relevant for AI workloads, which require significantly higher power density and faster deployment timelines than traditional data center infrastructure.
“I see off grid and behind the meter power becoming a permanent part of how large U.S. data centers are designed and delivered,” Hughes said. “Grid interconnection delays are a reality, and AI driven workloads are significantly increasing both power density and urgency.”
According to Hughes, developers are increasingly turning to onsite generation systems that can be deployed independently of utility interconnection timelines. He said modular engine-based systems are gaining traction because they allow operators to expand power capacity incrementally as infrastructure requirements grow.
