SpaceX plans to make gas-turbine blades for AI data-center power

Elon Musk confirmed that SpaceX plans to produce blades and vanes for natural-gas turbines, which are viewed as a critical near-term power source for AI data centers. Musk said in-house casting could accelerate turbines coming online by up to 18 months, while a Wall Street Journal report described SpaceX as an unlikely immediate threat to incumbent suppliers.

Howmet Aerospace shares fell more than 7% before partially recovering; Howmet and Berkshire Hathaway’s Precision Castparts are the two largest suppliers of these components. DPC was also hit. About 40% of DPC’s revenue comes from gas turbines, compared with about 11% for Howmet, which holds roughly half the global market for natural-gas turbine components.

The production process requires a new wax mold, a vacuum furnace and growing a nickel-superalloy blade as a single crystal. Even a stray grain or hairline defect can scrap a part, and a new line may initially discard more than half its output. Morgan Stanley does not expect SpaceX to become a material external supplier, suggesting the company may primarily use the components itself; whether it can scale production remains uncertain.