SpaceX Turns Turbine Maker as Musk Warns of Years-Long Equipment Shortage

Elon Musk has announced that SpaceX is establishing a manufacturing facility in Bastrop, Texas, to produce gas turbine blades and vanes in-house. The strategic move aims to circumvent severe industry supply chain bottlenecks, as gas turbines are currently sold out through 2030, with delivery lead times extending up to 2032. SpaceX anticipates that internal manufacturing could bring gas turbines online up to 18 months faster, addressing critical power infrastructure needs for expanding operations. The initiative highlights growing power supply challenges facing technology and artificial intelligence infrastructure. Data center operators are increasingly exploring alternatives, including pairing industrial boilers with steam turbines to bypass lengthy gas turbine order backlogs. For instance, Babcock & Wilcox recently secured a $2.4 billion agreement with Base Electron to supply 1.2 GW of steam power generation for Applied Digital's AI campuses, targeting a 2028 startup. While hyperscalers aim for long-term power solutions via nuclear and renewable energy, natural gas remains an indispensable bridge fuel to fulfill immediate surging electricity demand.