Arbor Energy just closed one of the largest hardware deals in climate tech history. The startup landed a $1 billion order to deliver up to 200 Halcyon turbines—power generators built with rocket engine technology that can burn natural gas or waste biomass. The deal marks a rare nine-figure commercial win for an energy startup and signals growing enterprise demand for flexible, scalable power infrastructure as AI data centers and electrification strain the grid.
Arbor Energy just proved that rocket science can sell. The startup announced a $1 billion order for its Halcyon turbines—a deal that places it among the rare climate tech companies to secure nine-figure commercial commitments before widespread market adoption. The order covers up to 200 units, each powered by technology originally developed for rocket engines, now adapted to generate electricity from either natural gas or waste biomass.
The deal arrives as utilities and industrial customers scramble to add generation capacity. AI data centers alone are projected to consume 8% of U.S. electricity by 2030, according to recent grid operator forecasts, while manufacturing electrification and heat pump adoption continue pushing demand higher. Traditional infrastructure can't keep pace, creating an opening for startable, modular solutions like Arbor's.
What makes the Halcyon turbines distinctive is their dual-fuel capability. They can run on natural gas when grid stability demands it or switch to waste biomass—agricultural residue, wood chips, or other organic material—for lower-carbon operation. That flexibility matters in a market where customers want baseload reliability without locking into fossil fuels permanently. The rocket engine heritage delivers higher combustion efficiency and faster startup times compared to conventional gas turbines, which can take hours to reach full output.
Arbor hasn't disclosed the customer behind the order, but the scale narrows the field considerably. A $1 billion commitment suggests either a major utility planning grid expansion or a hyperscale data center operator securing dedicated power. Google, Microsoft, and have all announced plans to procure clean firm power for AI infrastructure, while regional utilities face mandates to add dispatchable generation as coal plants retire.
