Woofun AI notes that SemiAnalysis identifies a critical shift in AI data center power strategies, with reciprocating engines transitioning from backup units to primary continuous power sources. Manufacturers have secured contracts for approximately 1GW of behind-the-meter projects this year, with annual additional supply projected to exceed 4GW by 2027 and 2028.

SemiAnalysis models indicate that existing U.S. grid surplus will be exhausted by 2027-2028, leaving planned utility-scale additions insufficient for new data center loads. An estimated 140GW of potential projects lack power contracts, likely driving adoption of behind-the-meter solutions. Reciprocating engines are expected to dominate this segment over gas turbines and fuel cells due to lower costs, rapid deployment, and modular scalability, with manufacturers like Caterpillar, INNIO, and Cummins expanding capacity.