FTAI Aviation Ltd. is expanding beyond aviation by launching FTAI Power, a new business that will convert commercial jet engines into power turbines for data centers and other energy-intensive users, the company said Dec. 30.
The move builds directly on FTAI’s core role as a global distributor and aftermarket provider of aircraft engines and parts. The company owns, maintains and supplies CFM56 and V2500 engines—the workhorses of the global commercial aviation fleet—through a maintenance, repair and exchange model that emphasizes inventory depth, rapid turnaround, and predictable availability.
FTAI Power will adapt the CFM56 engine into a 25-megawatt aeroderivative gas turbine designed to provide flexible, dispatchable power for data centers facing delays in grid access as artificial intelligence workloads drive electricity demand higher. Production is expected to begin in 2026.
FTAI said its competitive advantage lies in scale. The company operates more than 1 million square feet of engine maintenance facilities worldwide and owns more than 1,000 engines, supported by long-term parts supply agreements and a pipeline of additional engine acquisitions. More than 22,000 CFM56 engines have been produced globally, giving the platform a large installed base from which to source units for conversion.
Chairman and CEO Joe Adams said the breadth of the company’s engine holdings and repair network allows it to extend the useful life of the CFM56 beyond aviation. He said the engine’s reliability and global footprint make it well suited for aeroderivative conversion as demand for electricity accelerates.
The resulting turbine is smaller than many utility-scale units, offering grid operators and data center developers finer output control and faster deployment. FTAI said that flexibility is increasingly important as industries are reliant on high-density computing face multi-year backlogs for new power generation and transmission capacity.
Chief operating officer David Moreno said demand from AI hyperscalers is creating an immediate need for power solutions that can be delivered quickly and operated efficiently. He said FTAI Power is designed to meet that need by repurposing assets the company already owns and supports at scale.
As a distributor, FTAI’s existing business centers on supplying engines, modules and components to airlines and aircraft lessors while providing ongoing maintenance and exchange services that minimize aircraft downtime. That model depends on holding significant inventory, forecasting demand, and performing repairs in-house rather than relying solely on third-party shops.
FTAI said it will apply the same distribution and service framework to power generation. Under FTAI Power, the company will remanufacture CFM56 core turbines, integrate aeroderivative components and deliver fully assembled power units, along with long-term service support. The company expects it will be able to produce more than 100 power turbines annually once production ramps, using its existing engine inventory and maintenance infrastructure.
FTAI Aviation owns and maintains aircraft engines that power many of the world’s most widely used commercial aircraft. In addition to its aftermarket distribution and maintenance operations, the company acquires and manages on-lease aircraft and engines in partnership with institutional investors.
Do not miss any content from Distribution Strategy Group. Join our list.
