Morgan Stanley: Turbine Components Become New AI Power Bottleneck

Morgan Stanley reports that AI data center competition is shifting from chips to power, with gas turbine blades and impellers becoming critical bottlenecks. SpaceX is vertically integrating by building a foundry in Bastrop, Texas, to supply turbines for data centers and its Starship Raptor engines. Musk targets 10GW of compute by 2027, while Morgan Stanley models 5GW, citing power supply constraints. Each GW is estimated to generate $50 billion in annual revenue.