Data Center Gas Engine Servicing Generates Higher Annual Revenue per Megawatt
Summary
INNIO expects more than $50,000 of annual service revenue per MW from data center gas engines, about 70% above its fleet; Wärtsilä sees the same shift but has no orders yet.
Data center gas engine service revenue is set to rise as operators run engines as round-the-clock prime power. On their third-quarter 2026 earnings calls on October 27, 2026, gas-engine makers INNIO Holding (INIO) and Wärtsilä Oyj Abp (WRTBF) both said engines sold to data centers will run continuously for years and support a larger lifecycle services business than their existing fleets, extending beyond 2030 [1][2].
Data centers are turning gas engines from backup into prime power
Gas-engine makers earn money twice: once when they sell an engine, and again on service over the engine's life. Wear parts are replaced on running hours, so the more an engine runs, the sooner and larger the parts swaps, top-end overhauls and major overhauls (a full teardown and rebuild) arrive. Data centers have mostly relied on diesel standby generators that run only during outages and generate little follow-on service. Some data centers that cannot get a timely grid connection now install gas engines on site as their main power source and run them around the clock. INNIO said most of these engines are prime power and will run more hours than the average engine in its installed base of about 44 GW [1]. Accelleron, which supplies turbochargers for these engines, says prime-power engines run thousands of hours a year [3]. When the duty cycle changes this way, service revenue per installed megawatt rises, and every company selling gas engines into data centers faces the same shift.
INNIO puts a number on service revenue per MW; Wärtsilä has not booked an order yet
INNIO is so far the only company that quantifies the uplift. It expects annual service revenue of more than $50,000 per MW for its added data center installed base, about 70% above the roughly $30,000 per MW its existing fleet generates [1]. It recently signed a long-term service contract covering 500 MW with a major data center operator; the contract includes a major overhaul and extends into a second lifecycle. Most of the full-service contracts INNIO has negotiated with data center customers include the major overhaul and run 10 to 15 years [1]. INNIO expects the first larger service events around 2030 and says it will strive to quadruple its adjusted service EBITDA (earnings before interest, taxes, depreciation and amortization) by the mid-2030s [1].
Wärtsilä's CEO also said growth in the data center installed base will support a significant lifecycle services business that extends well beyond 2030. Management acknowledged, however, that it expects to take the first data center lifecycle service orders within this year and none are booked yet [2]. Wärtsilä's third-quarter service net sales were stable, and growth in its energy service order book came mainly from retrofits and upgrades, which the company describes as one-off orders [2]. The two competitors pointed in the same direction on the same day, but only INNIO has sized the increase.
Service revenue is locked in at signing, but cash arrives around 2030
Data center customers lock in maintenance at installation through full-service contracts of 10 to 15 years, so a decade of major-overhaul revenue is assigned to the engine maker when the contract is signed [1]. Components replaced on running hours are affected too: Accelleron expects prime-power engines to generate substantial turbocharger service demand three to five years after start-up [3].
None of this shows up in the financials yet. In February 2026, Wärtsilä said data center service revenue would follow later because of commissioning and warranty periods, and that reserve units do not run continuously [4]. Accelleron has also warned of overheating demand in US data centers, noting that the demand signals its customers report add up to more than the whole market [3]. If construction slows, the installed base and its service revenue shrink together. Three things to track: whether Wärtsilä signs its first data center service orders this year, whether INNIO signs more long-term contracts that include the major overhaul, and when Accelleron's data center service revenue appears.
Which companies this shift could affect
- Accelleron (ACLLY): Supplies about 80% of high-speed gas-engine turbochargers, with customers including Caterpillar, Wärtsilä and INNIO. Its turbocharger deliveries for data center prime power reached about 5 GW in the first half of 2026, up from less than 2 GW, and those parts could turn into service demand in a few years [3].
- Caterpillar (CAT): Sells high-speed gas engines into data center prime power and has restarted a 10 MW medium-speed gas engine for that use. Management says this fleet will create top-end, in-frame and major-overhaul service revenue, mostly after 2030 [5].
- Cummins (CMI): Has taken a gas prime-power order for a behind-the-meter data center in Texas and is developing a 130-liter natural gas genset, but says its power generation revenue this decade will be predominantly diesel standby, which carries little follow-on service [6].
Sources
[1] Drillr · INNIO Holding (INIO) · 2026-10-27 · Q3 2026 earnings call
On average, we expect annual service revenue of more than $50,000 per megawatt for our added installed base around 70% higher than the approximately $30,000 generated by our existing fleet.
[2] Drillr · Wärtsilä (WRTBF) · 2026-10-27 · Q3 2026 earnings call
[3] Drillr · Accelleron (ACLLY) · 2026-08-27 · H1 2026 results call
[4] Wärtsilä · Highlights from the Data Centre theme call · 2026-02-17 · Investor blog · https://www.wartsila.com/investors/blog/post/highlights-from-the-data-centre-theme-call
[5] Drillr · Caterpillar (CAT) · 2026-08-04 · Q2 2026 earnings call
[6] Drillr · Cummins (CMI) · 2026-08-04 · Q2 2026 earnings call
This article highlights industry changes and companies that may be overlooked. It is not a stock recommendation.