Can Retired CFM56 Engines Solve the AI Data Center Power Crisis?

December 30, 2025 at 11:30 AM•3 min read

FTAI Aviation launched FTAI Power to convert CFM56 aircraft engines into 25MW aeroderivative gas turbines, meeting urgent AI-driven data center energy demand starting in 2026.

Key Points

1FTAI Aviation launched FTAI Power to convert CFM56 jet engines into 25MW aeroderivative gas turbines for data centers.
2Production is slated to begin in 2026, with a capacity to deliver over 100 units annually to meet urgent AI-driven power demand.
3The initiative leverages FTAI's fleet of over 1,000 engines and extensive maintenance facilities, creating a new secondary market for the CFM56 engine platform.

FTAI Aviation Ltd. (FTAI) has launched a new platform called FTAI Power. The initiative focuses on converting the widely used CFM56 engine into power turbines. This move is a strategic pivot to address the growing AI-Driven Power Demand from global data centers. Production of the new aeroderivative units is expected to begin in 2026.

FTAI is leveraging its position as a major aftermarket maintenance provider. The company owns and maintains a significant fleet of commercial jet engines. This unique capability allows FTAI to repurpose core engine components. The goal is to provide a flexible and cost-efficient energy solution.

The Aeroderivative Solution

The new product is an aeroderivative gas turbine adapted from the CFM56 engine. Each unit is designed to provide 25-megawatts (MW) of power. This size offers grid operators greater flexibility and finer output control. This is an advantage over much larger, less modular power generation systems.

The CFM56 engine market is the largest and most reliable in the world, with over 22,000 units produced.
FTAI expects to begin production in 2026 and scale capacity to deliver over 100 units annually.
The company believes this offers a scaled alternative to the market, which currently faces multi-year backlogs for power solutions.

Leveraging Aviation Expertise

FTAI Aviation, a major player in the commercial aviation news sector, is capitalizing on its existing infrastructure. The company operates over one million square feet of maintenance facilities globally. It also owns a fleet of over 1,000 engines, providing a predictable supply chain.

Converting the CFM56 engines extends the life of these proven assets. This is a novel application, as no other aeroderivative solution currently uses this specific engine type. The modular maintenance model developed for jet engines will be applied to the power turbines. This aims to maximize uptime for the new power units.

Impact on Commercial Aviation

This new platform creates a powerful new outlet for retired or aging CFM56 engines. It provides a valuable secondary market for the engine platform. This could potentially affect the engine's residual value in the commercial aerospace aftermarket. The move also positions FTAI Aviation as a key infrastructure partner for the rapidly expanding AI economy.

The primary impact on airlines and MROs is the creation of a new, high-demand buyer for engine cores. This helps manage the lifecycle of the CFM56, which powers many Boeing 737 and Airbus A320 family aircraft. The AI-Driven Power Demand is creating an urgent need for immediate power solutions. FTAI's strategy offers a fast, flexible alternative to traditional power plant construction.