FTAI Aviation (NASDAQ:FTAI) saw its shares rise by 8.8% in the morning session after announcing the launch of FTAI Power, a new venture aimed at repurposing its CFM56 aircraft engines into 25-megawatt power turbines.
This innovative initiative is set to address the growing global demand for electricity, particularly driven by the increasing power needs of AI-driven data centers.
FTAI Power plans to produce over 100 units annually starting in 2026, transforming existing aircraft engine inventory into viable energy solutions.
The new venture capitalizes on FTAI’s expertise in aircraft maintenance, offering flexible, "plug-and-play" turbines that can meet the immediate energy demands of hyperscalers in the AI economy.
David Moreno, Chief Operating Officer of FTAI, highlighted the strategic significance of this move, explaining that the turbines will provide AI companies with rapid-deployment energy that traditional grids cannot deliver quickly enough.
As the demand for power in AI hyperscalers' data centers surges, this new revenue stream positions FTAI to play a key role in the evolving power grid of the future.