Arbor Energy and GridMarket Forge Partnership to Supply Up to 5GW for Data Centers

Arbor Energy and GridMarket Forge Partnership to Supply Up to 5GW for Data Centers March 26, 2026 The relentless growth of artificial intelligence and cloud computing is placing unprecedented strain on power grids, making the availability of reliable, scalable electricity a critical bottleneck for new data center development. In a significant move to address this challenge, U.S. power systems firm Arbor Energy has entered a strategic agreement with energy optimization platform GridMarket to deliver up to 5 gigawatts (GW) of power capacity to the data center and industrial sectors, with supply expected to commence in 2029. The partnership aims to offer data center operators an accelerated path to securing baseload power. At the core of the deal is Arbor's modular Halcyon turbine, a 25-megawatt (MW) unit adapted from rocket turbomachinery technology. These pre-assembled turbines can run on various fuels, including natural gas and biomass-derived syngas, and utilize 3D printing to simplify manufacturing. Their modular design allows for deployment as standalone units or combined into larger installations, promising a shorter deployment cycle compared to traditional power plants. Nick Davis, CEO of GridMarket, highlighted the urgency of the situation: "Power availability is quickly becoming the gating factor for data center and industrial development. Our customers are increasingly looking for ways to secure new capacity faster than traditional generation timelines allow. Arbor’s system adds a new option for bringing baseload power online as demand continues to grow." Concurrently with the agreement, Arbor announced the appointment of Nishad Pai, formerly of Heirloom, Google, and Amazon, as its chief commercial officer. Pai stated, "What drew me to Arbor is the opportunity to apply that experience to one of the biggest challenges ahead: building more power infrastructure faster. I’m excited to help bring new capacity online at the scale and speed the market demands." Arbor has outlined an ambitious production scale-up plan, targeting the shipment of over 100 turbines annually by 2030, which would equate to adding more than 1GW of new capacity each year. This scale of deployment is poised to significantly impact the market, providing data centers, manufacturers, and utilities with a new source of flexible, on-demand power that can enhance grid resilience and support continued digital infrastructure expansion. Source: datacenterdynamics