BorgWarner signs deal to supply turbine generators for data centers, entering power generation market with production expected in 2027

In February, BorgWarner signed a master supply agreement with TurboCell, a subsidiary of infrastructure developer Endeavor, to provide modular turbine generators for data center power. Management expects production to begin in 2027, with sales exceeding $300 million in the first year.

The turbine systems will provide backup and prime power for data centers and are fuel-flexible, capable of running on natural gas, propane, diesel, or hydrogen. BorgWarner controls roughly 65% of the content in each system by leveraging its existing expertise in turbochargers, thermal management, and power electronics.

Management expects the new business to deliver mid-teens incremental margins and be accretive to earnings per share in year one. However, BorgWarner's core auto business—products for internal combustion engines and hybrid vehicles—still generates over 80% of total revenue, and the company projects a decline in light vehicle production this year.