McDermott Enters the Race as AI Data Centres Open a New Gas-Fired Power EPC Market
McDermott and Doosan Enerbility plan to pursue gas-turbine, generator and related power projects, with behind-the-meter generation for data centres identified as a priority market.
McDermott and South Korea’s Doosan Enerbility signed a memorandum of understanding on 4 August to evaluate and pursue opportunities involving gas turbines, generators and related power equipment and services.
The announcement specifically identifies behind-the-meter power generation for data centres. These plants are built at or near a data-centre campus and supply the facility directly, reducing dependence on the timing of a public-grid connection. The companies will also assess delivery models intended to improve efficiency, shorten response times and reduce project risk.
The agreement remains at the memorandum stage. No project, customer, capacity or contract value has been disclosed.
Power Supply Is Becoming a Constraint on Data-Centre Growth
The International Energy Agency expects global data-centre electricity consumption to reach about 945 TWh in 2030, more than double the 2024 level. Demand from AI-optimised data centres is forecast to rise more than fourfold, while data centres could account for almost half of US electricity-demand growth over the next several years.
Large AI data centres can be built faster than new power stations, transmission lines and substations. Even where total generation is sufficient, individual developments can be held back by transmission constraints, substation capacity and grid-connection queues.
Some developers are therefore adding generation within or next to their campuses. Behind-the-meter generation does not necessarily mean operating independently from the grid; it can work alongside grid supply, batteries and back-up systems. Its immediate value is to protect the commissioning schedule and improve reliability.
From Supplying Turbines to Delivering the Complete Power Plant
Gas turbines can provide large volumes of continuous power, use mature technology and be installed close to the load. They are better suited to continuous operation than diesel generators and, unlike wind and solar, their output is not directly dependent on weather. Combined-cycle configurations can add heat-recovery steam generators and steam turbines to improve fuel efficiency.
Some planned data-centre campuses require hundreds of megawatts and, in some cases, gigawatt-scale supply. Their power systems extend well beyond gas turbines and generators to gas receiving and pressure control, heat recovery, steam turbines, cooling, electrical and control systems, substations, transmission, civil works, installation, commissioning and performance testing.
Round-the-clock data-centre operation also requires redundancy, maintenance planning, reserve capacity, load-following capability and fault transfer. Demand is consequently moving from isolated equipment purchases towards integrated power solutions and full EPC delivery.
One Partner Brings Equipment Orders; the Other Brings Project Delivery
In March 2026, Doosan announced an order from a US customer for seven 380 MW-class gas turbines and generators, with monthly deliveries scheduled from May 2029. Including earlier awards, Doosan will supply 12 gas turbines to that customer.
Doosan subsequently won orders for two 370 MW-class steam turbines and generators for combined-cycle plants serving US data centres. This marked its first steam-turbine supply to a North American customer and expanded its offering from gas turbines into the principal equipment package for a combined-cycle plant.
McDermott contributes experience in engineering, procurement, construction, modular fabrication, systems integration and project management for large energy developments. Doosan brings the core equipment and an existing commercial base in the market.
McDermott’s traditional portfolio is concentrated in oil and gas, LNG, petrochemicals and offshore engineering. Although data-centre developers are a different client group, their dedicated gas-fired plants require many of the same engineering, procurement, construction-management and commissioning capabilities.
The Market Is Still at an Early Positioning Stage
On-site gas-fired generation will not suit every location. Projects need secure gas supply and must address land, water, emissions permits and decarbonisation. Not every announced power requirement will be built as planned; some developments may be phased, delayed or cancelled.
No specific project has yet been disclosed under the memorandum. Doosan is seeking to extend its equipment base into a wider project scope, while McDermott gains an entry point into data-centre power. Their cooperation shows competition expanding from turbine supply towards engineering delivery of complete generation systems.