FTAI Aviation has announced that J&F Power Systems, its joint venture with Jereh Group, secured an initial $1.465 billion order for mobile gas turbine generator sets from an unnamed international cloud service provider.
The order was placed under a five-year master supply agreement that allows the customer to issue additional purchase orders. The initial contract represents a substantial portion of FTAI Power’s targeted deliveries of Mod-1 CFM56 aeroderivative units in 2027.
J&F will provide mobile generator sets powered by FTAI’s Mod-1 aeroderivative gas turbine. Deliveries are expected to occur in batches through November 2027.
Aeroderivative gas turbines are based on technology originally developed for aircraft engines and adapted for ground-based power generation. These systems can provide relatively rapid deployment, high power density and operational flexibility for large electricity users.
The equipment will support the cloud provider’s power infrastructure expansion. Data centers and cloud computing facilities require large, reliable power supplies to operate servers, cooling equipment and other supporting systems.
J&F was formed by FTAI and Jereh Group to package and distribute the Mod-1 turbine platform. The joint venture combines FTAI’s turbine technology with Jereh’s equipment integration, manufacturing and distribution capabilities.
The customer will make payments according to project milestones. An advance payment is due at signing, followed by progress payments during manufacturing, testing and on-site commissioning.
Commissioning is the final process of installing, inspecting and testing equipment to confirm that it operates according to the contract’s requirements.
The final contract value is subject to performance adjustments. J&F may receive additional compensation if the equipment exceeds agreed performance standards.
Payments may be reduced if the generator sets produce less power than specified. Any downward adjustment is capped at 10% of the value of the affected equipment.
The master agreement provides an opportunity for additional orders over the next five years, but the customer is not obligated to purchase the maximum potential volume. The timing and number of future orders will depend on the customer’s infrastructure plans and J&F’s ability to meet production and performance requirements.
FTAI combines turbine technology with ownership and management of aviation and power-related assets. The company has not disclosed the identity of the cloud service provider.
