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Demand for diesel engines is growing so quickly that technology group Wärtsilä is planning to expand production capacity by another 30 percent at its factory in Vaasa, Finland, and it will boost output in its global supply chain as well. The announcement builds on a previous investment unveiled in February, and it brings the total capacity-hike pledge for the year to 65 percent.
Wärtsilä operates a giant facility in Vaasa called the Sustainable Technology Hub, home to 3,800 employees. It is the company's only manufacturing plant in Europe and it builds all classes of Wärtsilä engines. Beyond production, it is a major R&D hub for maritime technology: the company hosts an "ecosystem" of third-party partners on site to collaborate on engineering work, like ABB and Danfoss.
The need to expand the site follows from exceptional demand on shore and in the maritime industry. Wärtsilä plans to invest more than $100 million in this round of expansion, and the work should be completed in early 2029.
"Demand in the energy and marine markets continues to develop positively, driven by rising electricity consumption and rapid data-center growth in energy, and by decarbonization regulation and the need for fuel efficiency and fuel flexibility in marine," said Wärtsilä President and CEO Hakan Agnevall in a statement. "Our engines are recognized as a competitive technology for the future. This investment strengthens our ability to respond to the increasing demand, support our customers' requirements and reinforce Wartsila's long-term market position."
Just three months ago, Wartsila announced a previous 35 percent capacity expansion at the same site, due for completion in early 2028. Tuesday's news reinforces a picture of rapid growth, and recent announcements suggest the extent to which the U.S. data center construction boom is driving demandd. Each mega-sized "off grid" data center project requires up to 40 natural gas-fired generators of the Wärtsilä 50SG size, enough to produce up to 800 MW of power in one place. "The extreme surge in data center growth requires reliable electricity, creating an urgent need for increased grid capacity across the US," said Risto Paldanius, VP, Americas at Wärtsilä Energy, in announcing a major order in February.
Gas turbine generators have historically been selected as the primary choice for power generation needs at this scale. But with turbines in scarce supply, the data center industry is turning to "recips" - spark-gas medium speed diesel engines - to bridge the power gap and keep expanding. The market is particularly strong in the state of Texas, where abundant natural gas and a favorable development climate coincide with a strained electrical grid and a need for power generation.
Fuente: Maritime Executive
