FTAI Aviation Repurposes Jet Engines to Power AI Data Centers
New York, Tuesday, 30 December 2025.
FTAI Aviation officially enters the energy sector, converting its CFM56 jet engines into 25-megawatt power turbines to solve critical electricity shortages for AI data centers starting in 2026.
Strategic Entry into Energy Infrastructure
On December 30, 2025, New York-based FTAI Aviation Ltd. (NASDAQ: FTAI) announced the formation of FTAI Power, a platform established to address the escalating energy requirements of the artificial intelligence sector [1]. By leveraging its maintenance expertise, the company intends to convert CFM56 aircraft engines into 25-megawatt power generation units specifically designed for data centers [1]. This initiative aims to utilize the company’s access to over 1,000 engines to deliver a scalable power solution, with production of the aeroderivative units projected to commence in 2026 [1].
Operational Mechanics and Executive Insight
The strategy relies on remanufacturing the core turbine of the CFM56 engine—widely regarded as the largest and most reliable engine market globally—with aeroderivative components [1]. Joe Adams, Chairman and CEO of FTAI Aviation, highlighted that this conversion process is an ideal method to extend the operational life of these assets while serving a critical market need [1]. David Moreno, the Chief Operating Officer, reinforced this vision, stating that FTAI Power is founded on the conviction that the future is electric and that these repurposed engines will play a key role in supplying essential power [1]. The company anticipates a predictable production schedule, targeting the delivery of over 100 units annually once the program is fully operational [1].
Portfolio Context and Financial Standing
This venture marks a distinct evolution for FTAI Aviation, which has historically focused on aviation leasing and aerospace products, managing a portfolio of 391 aviation assets as of late 2025 [2]. The company’s traditional business segments involve owning and maintaining commercial jet engines, specifically the CFM56 and V2500 models, for lease and sale to the airline industry [2]. Financially, FTAI Aviation closed trading on December 29, 2025, at a price of $172.83 per share [3]. The company has maintained a consistent return to shareholders, reporting an annual dividend of $1.40 per share with a yield of 0.81% leading up to this announcement [3].