CEO confirms imminent hyperscaler nuclear deal as data centers drive shift to continuous power systems by 2030.
Rolls-Royce expects power generation revenue to grow 25% annually through 2030, up from a prior 20% target, as AI data centers seek continuous power solutions. The company forecasts these systems could account for one-fifth of its power-generation business by the decade’s end.
Demand for backup and gas engines is rising as data centers struggle with grid connectivity, shifting from idle generators to round-the-clock power sources. Rolls-Royce is already taking orders for 2028 delivery and negotiating framework agreements with hyperscalers.
The company also benefits from increased global defense spending, positioning it in two major investment cycles: AI infrastructure and defense. CEO Tufan Erginbilgic confirmed an imminent deal with a major hyperscaler, pending internal approval early next week.