BorgWarner Strikes Deal to Power AI Data Centers with Modular Turbine Systems
February 11, 2026
In a strategic move to capitalize on the explosive energy demands of artificial intelligence, automotive technology supplier BorgWarner Inc. has entered the data center infrastructure market. The company announced a Master Supply Agreement with TurboCell, a subsidiary of full-stack developer Endeavour, to supply modular turbine generator systems. This partnership marks a significant shift for BorgWarner, leveraging its automotive-scale manufacturing and engineering expertise to address a critical bottleneck in the growth of AI and hyperscale computing.
The agreement culminates over three years of joint development with TurboCell. BorgWarner will produce the turbine systems, which are designed for both primary and backup power applications at AI data center campuses, with deployments anticipated at a gigawatt scale. The initial production capacity of 2 gigawatts is slated to come online in 2027 at a facility in Hendersonville, North Carolina. The system is engineered for high power quality, dynamic response to grid fluctuations, and flexibility in fuel sources, including natural gas, propane, diesel, and hydrogen, while aiming to meet stringent future emissions standards.
BorgWarner expects to control approximately 65% of the turbine system's content through vertical integration, drawing on its core competencies in turbocharging, thermal management, power electronics, and high-speed electric systems. This approach utilizes the company's established automotive supply chain and manufacturing prowess to scale production for the data center sector.
Joseph Fadool, President and CEO of BorgWarner, stated that the product represents a proactive seizure of a growth opportunity. "We believe this solution provides many advantages to conventional power solutions, including superior transient response and fuel flexibility as well as a lower emissions footprint, while meeting the behind-the-meter power market demands," Fadool said. He anticipates the system will address the power needs of hyperscalers and colocation providers, opening avenues for further profitable growth.
Jakob Carnemark, Founder and CEO of Endeavour, highlighted the synergy of the partnership. "We developed the TurboCell system to supply the dynamic, demand-responsive power required to accelerate AI infrastructure development. With BorgWarner’s global supply chain and proven technical capabilities, we look forward to providing the next generation of on-site power," Carnemark remarked. The TurboCell system will be offered exclusively through Endeavour's Edged Infrastructure division.
The deal underscores the data center industry's urgent search for reliable, high-density, and scalable power generation alternatives beyond the traditional grid. As AI workloads push power requirements for single campuses into the gigawatt range, innovative on-site power solutions like modular turbines are becoming increasingly critical for enabling future growth and ensuring operational resilience.
Source: borgwarner
