Will AI trigger a jet engine shortage like the memory chip crunch?

The growth of Artificial Intelligence has caused chain reactions in places that weren’t expected by the tech world. 

The explosive growth of AI data centers has increased demand for DRAM (Dynamic Random Access Memory) and hard disk storage.

This has caused a shortage in the memory chips used in personal computers and smartphones. 

There is another area where this relentless AI infrastructure push could make a dent, and that is jet engines.

As data centers consume more power, traditional power sources might end up not being able to take the load. 

This has led to companies turning to jet engines to power the data centers.

But the question is, will AI’s appetite for resources affect jet engines like it affected memory chips?

Jets powering AI 

Many of the companies building AI infrastructure are turning to jets to satiate AI’s energy needs. 

Crusoe Energy, a company that is building infrastructure for the Stargate project and OpenAI’s data centers, announced it will buy twenty-nine 42-megawatt turbines from Boom Supersonic, an aircraft startup, for $1.25 billion.

Elon Musk’s xAI bought a power plant in Southaven, Mississippi.

The company has brought in 18 methane gas turbines to power its AI ambitions.

Jet engine sounds have caused trouble for the locals residing near the plant.

Jets, which helped people travel all over the world, will now power your ChatGPT search. 

Will there be a jet engine shortage?

As artificial intelligence infrastructure expands, will the surge in power demand spill over into the jet engine supply chain? 

Analysts believe that although AI demand could create some supply shortages, it is not expected to affect the supply chain as severely as the semiconductor situation.

Ross Maxwell, Global Strategy Operations Lead at VT Markets, told Invezz that aeroderivative gas turbine production gave primary focus to the aviation industry due to the high margins. 

“Aeroderivative gas turbines use a specialised supply chain that overlaps with aircraft engines. Production therefore has limited capacity and is prioritised for aviation aftermarket support, where margins are highest.” Maxwell said. 

He added that an increase in data centre turbine orders could add to supply constraints in multi-year order backlogs rather than immediate shortages due to turbines being produced in lower volumes and being sold on a project basis. 

“Another risk is the fact that aeroderivatives require regular maintenance, so if AI power demand increases rapidly, the constraints could shift from new units to service intervals and spare parts availability”, Maxwell noted. 

Amit Goel, Co-Founder & Chief Global Strategist Pace 360, also doesn't see a near-term shortage in the aviation supply chain.

Goel reasoned that jet engines are a high-value and profitable industry within an oligopolistic structure. 

Should investors buy engine manufacturers or key suppliers?

Though jet engines may not be affected like memory chips, could investors play this theme if they foresee a memory chip-like situation in the industry?

Shares of memory makers have gained in the last year, as memory chip makers became shovel sellers in the AI gold rush. 

Samsung Electronics surged over 250% over the last year, SK Hynix gained almost 400% in the same period, Micron Technologies shot up by 330%, and SanDisk skyrocketed by over 1000%. 

Though analysts said the situation is not similar, the aeroderivative industry could still be valuable to the investors.  

“Primary upside sits with engine manufacturers that have established aeroderivative lines and global service networks. GE Aerospace is well with both equipment and recurring service exposure. Rolls‑Royce Holdings benefits via the Trent-derived industrial turbines and its long-term service agreements, which align well with data-centre requirements”, Maxwell said. 

Maxwell also points out that high-temperature materials and precision component makers could also benefit from maintenance and repair works, which bodes well for companies like Precision Castparts, Howmet Aerospace, and MTU Aero Engines.

However, Goel doesn’t see a big opportunity, though he also concurs that the market is cornered by Rolls-Royce, GE, Bombardier, Embraer, and a handful of players. 

Goel reasons that the aviation market is oversupplied due to the capacity added since 2021.

He also points out that a lot of planes are grounded due to geopolitical issues. 

“As long as the geopolitical tensions do not fade away, the aviation market is going to suffer because of that” Goel added. 

Could aeroderivative supply affect Boeing and Airbus?

Could commercial aircraft makers suffer from aeroderivative engines being supplied to data centers?

Airbus, in its recent results, said that the monthly output of its signature A320 aircraft could fall below 75 units by the end of next year due to Pratt and Whitney's inability to keep up with the demand.

The aerospace company said it plans to deliver 870 jets this year and could have done more if there were adequate engine supplies. 

Maxwell sees a modest and timing-dependent impact rather than a new structural bottleneck.

“There is some shared capacity between aircraft engines and aeroderivatives, so incremental turbine demand could marginally tighten an already stretched supply chain. However, commercial aviation programmes have priority and higher margins, meaning OEMs will continue to allocate scarce components to flight-critical engines first”, he added. 

According to Maxwell, there is a risk if suppliers invested capital to serve the stationary power demand, which could reduce focus on “ increasing narrow-body engine output, slowing recovery timelines for Airbus and Boeing.”

But he reasoned that greater use of supplier facilities could enhance economies of scale and support capacity expansion, ultimately benefiting aircraft production.

Goel also notes that the supply constraints might be only for a few quarters and not a long-term one. 

Can retired aircraft engines solve the supply issue

Some companies are converting old aircraft engines to for data center use. 

FTAI Aviation announced in December 2025 the launch of FTAI Power, a platform designed to convert CFM56 aircraft engines into 25-megawatt natural gas aeroderivative turbines for AI and cloud data center power demand. 

Landon Tessmer, vice president of commercial operations at ProEnergy, said the company’s PE6000 gas turbines are being used to power data centres during its first few years. 

VT Market’s Maxwell said the investment’s worth would be dependent on “refurbishment costs and expected duty cycle.”

“Data centres require high reliability and predictable maintenance timeframes, which favours purpose-built aeroderivatives with established service programmes. Converted engines can be cheaper upfront and faster to deploy, making them attractive as a short-term option, but lifecycle costs and parts availability can be less certain. Critically, the pool of suitable retirements is limited. It may ease near-term, but it is unlikely to materially shift the long-term supply balance.”

While AI-driven power demand is opening new avenues for aeroderivative turbines, analysts suggest the aviation supply chain is unlikely to face the kind of shortages seen in memory chips. 

Instead, any pressure may appear as longer backlogs or service constraints, with the broader impact on aviation and turbine markets expected to remain limited.