Category: 3. Business

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Data centre developers are turning to aircraft engines and fossil fuel generators to power the AI boom, as supply chain shortages and long waits to connect to the grid delay cheaper and cleaner alternatives.

Manufacturers of aeroderivative turbines — which are based on or made from jet engines — and diesel generators have reported increased demand because of data centres seeking to bypass the grid as they wait for larger gas turbines.

“The incentives have never been greater for any sort of technology that can supply power,” said Kasparas Spokas, director of the Clean Air Task Force’s electricity programme.

The need for on-site energy is booming as data centres face wait times of up to seven years to connect to the grid, as well as a backlash over their impact on utility bills. By installing power sources such as aeroderivative turbines and generators next to their data centres, developers can power the training and running of their artificial intelligence models without the immediate need for a grid connection.

GE Vernova is supplying data centre developer Crusoe with aeroderivative turbines that are expected to produce nearly 1 gigawatt of power for OpenAI, Oracle and SoftBank’s Stargate data centre in Texas.

Ken Parks, GE Vernova’s chief financial officer, told investors in December that the company was seeing “growing demand” for its aeroderivative and smaller gas units, which “serve as bridge power supporting data centre needs”.

Orders of the company’s aeroderivative turbines rose by a third in the first three quarters of 2025 compared with the previous year.

ProEnergy has sold more than 1GW of its 50 megawatt gas turbines directly adapted from jet engines. While the company is increasingly making parts from scratch, it also uses CF6-80C2 engine cores, which are found in Boeing 747s.

“We can deliver more quickly than bigger original equipment manufacturers,” said Andrew Gilbert, partner of Energy Capital Partners, ProEnergy Holdings’ majority investor. “The ability to find a few hundred megawatts to get started with, and then grow over time is useful too.”

Sections of the economy seemingly outside of the AI boom are pivoting towards power to pick up revenue.

Sam Altman-backed aviation start-up Boom Supersonic announced a deal to sell to Crusoe turbines that are expected to provide 1.2GW of power and are “virtually identical” to those built for its jets.

Boom Supersonic intends to use earnings from power turbines to help fund its jet business.

“Three or four years ago I imagined we would do the airplane first and energy second,” chief executive Blake Scholl told the Financial Times. “But then I got a call from Sam Altman who said: ‘Please, please, please make us something.’”

The use of generators fuelled by diesel and gas is also increasing. Manufacturer Cummins has sold more than 39GW worth of power to data centres and nearly doubled its capacity this year.

While generators are often used by data centres as backup power, Cummins’ data centres executive director Paulette Carter says they are seeing “growing interest in on-site primary power”.

Energy secretary Chris Wright has suggested commandeering existing backup generators to fortify the grid, telling Fox News in November: “We will take backup generators already at data centres or behind the back of a Walmart and bring those on when we need extra electricity production.”

The use of generators has prompted concerns over emissions, since smaller power sources tend to be less efficient.

While local and federal regulators place limits on when backup generators can be used, these are being loosened in response to data centre demand. In Virginia, where “data centre alley” is located, the Department of Environmental Quality is considering allowing data centres to run diesel generators more often, while the Environmental Protection Agency said data centres could use generators to maintain stable power.

“In almost all cases I can imagine, emissions are going to be much worse for data centres powered by on-site fossil-based generation, relative to sourcing power from the grid derived from efficient gas generators and renewables,” said Mark Dyson, electricity managing director at the Rocky Mountain Institute.

However, the cost of on-site power is likely to be higher than a simple grid connection, since such arrangements miss out on the economies of scale that utilities enjoy. Analysts at BNP Paribas modelled the price of power at a behind-the-metre gas plant Williams Company is building in Ohio, for which Meta will be a customer. The result was $175 per megawatt hour, which is roughly double the average cost of electricity for industrial customers.

The rush for power may also die down when hyperscalers slow their capital spending.

“We’re in a very strong market right now, but it won’t stay like that forever,” said Mark Axford of Axford Turbine Consultants.

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Obio Jones was ready to make a major life change. The former digital marketing executive turned Instagram influencer was moving from his home town of Atlanta to Los Angeles. But, “I got a price breakdown for the move”, he recalls. “It was significant” — in the region of $8,000. Instead, Jones wondered if he could offset those overheads by securing a sponsored partnership — if he could do it with fashion brands, why not with a moving company. It was all content, right?

“Moving is stressful for a lot of people, and the idea of recording it isn’t ideal,” Jones does admit. “But we came up with a storyline about moving across the country to chase dreams.” In exchange for a one-minute video Reel and two Story posts on his Instagram page, delivered to his 190,000 followers within a week of that cross-country move, Roadway Moving waived their charges.

Who in their right mind would be gripped by a visual diary of someone moving house? You might well ask. But I refer you to people posting pictures of their plates of food. Those with semi-significant followings across Instagram, TikTok and more, including celebrities such as model Winnie Harlow, are all in.

There has been huge pressure on moving costs in the past five years, thanks to price rises in everything from labour to fuel, with some costs up by 80 per cent, according to the International Association of Movers; long-distance moves can now regularly cost as much as $6,000, according to Royal Moving & Storage’s 2025 cost trends report. So why not? Firms in the US that now operate formal marketing programmes include Piece of Cake, FlatRate Moving, both of them NYC-based, plus WellKnown Moving in Philadelphia. Roadway operates countrywide. The world is their removal van, you might say.

Movers can break your things, or lose them. But [on screen] you do feel a lot of pressure to talk in a positive light

Roadway offered a 10 per cent off link code to Jones’s followers — and many used it, he says. He doesn’t recall any non-disparagement clauses in the contract he signed with Roadway, but admits that it’s hard to be wholly upbeat. “Movers can break your things, or lose them,” he says, “But [on screen] you do feel a lot of pressure to talk in a positive light.” Still, one advantage of documenting the process is the team motivation to make it go as smoothly as possible. 

Roadway marketing director Valerie Fiordaliso helped create its influencer programme; she says the firm has gone from partnering with around 100 individuals over the first couple of years to more than 1,000 per year now. The first partnership she brokered, in 2017, was with Arielle Charnas, one of the original high-impact influencers. Charnas parlayed her social clout, with more than 1mn followers, into a fashion partnership with Nordstrom that same year, before launching her own brand, Something Navy. (Charnas has since become a polarising figure, starting with controversial Covid 19-related posts during the pandemic, though her follower footprint remains in the seven figures.) “It was done in a very organic manner, nothing like how we do it now with a full process and legal teams,” Fiordaliso recalls. “We just had to give it a go and hope for the best.”

Charnas, who was moving with her husband and child across New York City, embraced the partnership with gusto, roping in her closet organiser to appear too, arranging her vast shoe collection and more. The impact was instant, says Fiordaliso. She quickly created a one-sheet form where other would-be Roadway partners could pitch for discounted or complimentary moving services. Selection criteria depend on time of year — summer is busiest, so competition is fiercer. There’s strictly no fee. “Everyone wants to negotiate, but we can’t do $5,000 per post.” She also stresses this isn’t simply a Gen-Z gimmick. “We work with all ages — we just worked with a woman in her sixties whose husband passed away from cancer and she got remarried, so she’s moving, and we could tell her story.”

Story-lined sponsored content like this might be stressful to capture during an already fraught experience but influencers will likely already have planned to document it in detail, says Mae Karwowski, chief executive and founder of influencer marketing agency Obviously. Since influencers often document their every activity, a house move is just more “content”. “It makes a ton of sense,” she notes, another “plot twist” for the account. Given that it’s a momentous life event that most people experience, she adds, one that is both costly and infrequent, people are likely to be seeking recommendations. 

Roadway has worked with Jones not once but twice more. Last December, he was ditching his first LA apartment — “It was not ideal and I broke the lease, so I added a comedic energy to it” — and once more when he moved in with his now husband, actor Jermelle Simon, in April. “That added a little texture to it,” he says. Jones expects he might move again in the next couple of years, but isn’t sure he’ll keep re-upping that deal. “I would do it again, but if it’s too stressful, I might see the value in paying for it myself.”

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Major hotel groups are intensifying efforts to get customers to book directly, as they seek to save on commissions paid to online platforms and prepare for the rise of artificial intelligence “agents”.

Marriott, the world’s largest hotel company, last month said its Bonvoy loyalty programme, which registers all customers who do not use intermediaries, had almost 260mn members by the end of September, up 18 per cent from a year earlier.

Rivals such as Hilton, Hyatt and Wyndham Hotels & Resorts have also boosted direct bookings by using technology and more attractive perks. Hilton has made it easier for customers to reach elite loyalty status and agreed partnerships, including with MSC Cruises’ luxury division Explora Journeys, that enable members to spend points outside its portfolio.

Operators have long complained about the fees imposed by online travel agents (OTAs) such as Expedia and Booking.com, which typically take a cut of between 15 per cent and 25 per cent, and see the push for direct sales as crucial to taking fuller advantage of the arrival of advanced AI.

AI “agents” — autonomous bots capable of arranging travel for users — could provide hotel groups a cheaper alternative to online travel agents. But they could also divert business away from the big brands by making customers less conscious of brand recognition.

“Generative AI is shifting travel planning from traditional search into more conversational and agent-led environments. So that makes building relationships [with customers] a bit more strategic and important,” said Chema Basterrechea, chief operations officer at Radisson Hotel Group.

Boosting direct bookings could help Radisson capture more guest data and offer “a much more personalised experience” that encourages repeat business, Basterrechea said.

Marriott’s chief financial officer Leeny Oberg said at a conference this month that bookings made through AI channels “could potentially be cheaper than the OTAs”.

Hotel groups have long worked with online travel agents because they provide access to incremental business, but hope that more robust ties with customers will reduce the share of bookings done through them.

“You don’t want to rely on Booking and Expedia: they’re expensive channels and they’re extremely hard to defend your position on,” said Bernstein analyst Richard Clarke.

Hilton’s efforts to lure more direct bookings include offering access to a £650 football-themed suite, decorated with boots and memorabilia, at its hotel at the official training ground for England’s national teams. Guests can even get a training session with a qualified coach.

Geoff Ballotti, chief executive of Wyndham, said that tools like ChatGPT and Gemini presented “a unique opportunity for us to continue to reduce our dependency on OTAs”. The company’s own AI tools were already “driving more direct bookings”, he added.

Glenn Fogel, chief executive of Booking Holdings, which owns Priceline and Booking.com, said OTAs were “absolutely” in competition with hotels’ in-house loyalty programmes that sought to promote more direct bookings.

“You’re just one click away from going to another way to do your booking, so you’ve got to always be providing better service because people like [Marriott] Bonvoy and people like Hilton Honors are very powerful.”

But Expedia’s chief commercial officer Greg Schulze said there was “space for all of us” in the $3tn travel industry and argued that his company’s technology platforms added “complementary value”, especially for smaller operators that are not part of the big chains.

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The global boom in weight-loss drugs has reshaped human medicine, propelled pharmaceutical shares and redrawn expectations about chronic disease. Now drugmakers spy a new growth market in the US: portly pets.

Americans may fret over their waistlines, but their cats and dogs are in even worse shape. An estimated 60 per cent of the country’s cats and dogs are either overweight or obese according to a 2022 survey by the Association for Pet Obesity Prevention. Diabetes — once rare in animals — is now among the most expensive chronic conditions in veterinary practice.

This is, of course, a financial opportunity. Owners lavish extraordinary sums on their animals. Pet spending reached $183bn in 2023, nearly four times 2003 levels, data from the Federal Reserve shows. If semaglutide can shrink a human waistline, why not a feline one? A handful of firms believe that obesity medicine, which transformed human healthcare in just a few years, could become a lucrative veterinary category.

The most ambitious of these is Okava, a San Francisco start-up testing a GLP-1 drug — exenatide — delivered not by injection but by a miniature implant. Weekly injections may be tolerable for humans motivated by vanity; persuading a family to jab a struggling cat is another matter altogether. A long-acting implant that requires only two visits a year to the vet could solve the problem neatly.

Okava launched its first clinical trial, MEOW-1, earlier this month and hopes to eventually market the treatment for up to $200 a month. That is steep, but not outlandish in a world where “premium” pet foods cost just as much and elaborate veterinary insurance plans have become mainstream middle-class indulgences.

Yet the path to animal-size profits is far from smooth. Okava is only in the early-stage clinical trial phase of testing the drug. Lifestyle interventions such as diet and exercise remain veterinarians’ preferred first step. And history offers caution. In 2007, Pfizer got FDA approval for Slentrol, the first prescription weight-loss drug for dogs. After Pfizer spun off its Zoetis animal-health subsidiary, the therapy was discontinued because of limited demand.

The economics of veterinary obesity may now be shifting. Diabetes care for an animal is expensive and the process is laborious: twice-daily insulin injections, regular glucose monitoring and frequent vet visits. If GLP-1-based therapies can prevent the disease or send mild cases into remission, owners may embrace them not to discipline their pets’ diets but to avoid far greater costs later.

For drugmakers, the appeal is less sentimental. The human obesity-drug market may one day reach saturation; pet medicine, by contrast, remains under-developed. The incentives are aligned: anxious owners, rising chronic disease and a pharmacy sector hungry for new profit pools. Pharma’s next battleground, then, may be the living-room sofa — and the overfed creature sprawled across it.

pan.yuk@ft.com

Mengni Fu checks in to her hotel room using her mobile phone from the backseat of a taxi. When she arrives at the hotel, she drops her luggage to one of the porter robots who delivers it to her room. She unlocks her room with a digital key on her mobile phone. Then she sits on the bed and asks the AI assistant to turn on the light, close the curtains and recommend a restaurant nearby.

So far, Fu hasn’t interacted with a single human in the hotel. This is not the script from a sci-fi film; this is travel in China in 2025. Fu, a PhD candidate at Griffith University, is describing a recent trip to Shanghai. 

And according to consulting firm McKinsey and Co it’s the future of travel: where technology erases “typical travel pain points such as queues, misunderstandings, or misinformation” and the human interactions that do occur are “authentic and meaningful”.

Robotics, AI and service automation are disrupting the hospitality and tourism industry — as they are many aspects of our lives. More people are turning to AI chatbots built on large language models, like ChatGPT or Trip Advisor’s “my trips”, to plan their holidays.

Popular destinations are using “smart tourism” to manage the flow of tourists, and companies selling earbuds offering simultaneous translation are heralding the end of the language barrier.

The question is, will new technology simply lead to streamlined service and stress-free travel, or will it fundamentally change tourism and tourist destinations?

‘Killing our business’

The Instagram account of Guide to Lofoten is usually filled with breathtaking photographs of colourful fishing villages framed by rugged mountains. The Norwegian tour company posts spectacular, but rarely viral, content. In October, a different type of post hit a nerve: “This is how ChatGPT is killing our small local business.”

The owners claim they’re losing income and visibility as fewer people visit their website, instead getting their information from ChatGPT which doesn’t recommend local companies like theirs. “We know we’ll have to adapt — but it still hurts to watch something you’ve been building for years collapse like a house of cards in less than a year,” the owners said on Instagram.

Dr Marianna Sigala says there’s no question people are turning to generative AI to plan their holidays — everything from choosing a destination, comparing prices, to planning a daily itinerary. “The impact is huge. It affects consumers and when consumers are affected immediately you realise companies will have to readapt because they cannot continue doing and selling what they used to,” says the professor of marketing and director of the International Hotel School at the University of Newcastle.

Sigala likens it to the disruptive power of the steam engine or the impact Booking.com had on online travel in the early 2000s — where average consumers gained access to the Internet and began to book their own travel.

Travel planning using generative AI is being described as the “hyper-personalisation” of travel. Sigala says the creation of highly individualised itineraries will change how tourists travel — but its impact will depend how the tool is used. “The power of AI depends first of all on the quality and the quantity of the data that it has been trained on, and it’s being trained continuously … and secondly it depends on what you ask it,” she says. “If we ask stupid questions we get stupid answers.”

The road less travelled

From 19^th century railway expansion to cheap air travel to colour TV, professor Adrien Palmer argues in The Conversation that technology has long fuelled over-tourism. Palmer believes it’s too early to tell what the impact of AI will be on travel. But he says generative AI-planned itineraries could potentially nudge tourists away from over-tourism hotspots or AI-enhanced virtual reality could vanquish the need to travel in the first place.

Like the “digital twin” of St Peter’s Basilica – one of the most visited places in Europe – that the Vatican unveiled last year. Created with the help of AI technology which analysed and pieced together vast amounts of photographs and video, the digital twin gives anyone with internet access the chance to “visit”.

As Sigala suggests, the ability to find a road less travelled in the future may depend on your ability to prompt an AI assistant.

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Marketing researcher Joseph Mellors says his analysis of ChatGPT “found that it gravitates towards the most visited destinations by default”. 

“By asking sharper questions, shifting their timing, checking footprints and seeking local voices, travellers can use AI as a tool for discovery rather than congestion,” Mellors writes in The Conversation. “Every prompt is a signal to the system about what matters.”

AI-inspired travellers will need to be wary of hallucinations — where generative-AI chatbots produce misleading content because they create plausible statements based on patterns, which aren’t necessarily correct or real. The BBC recently reported the case of two tourists who were about to hike into the Peruvian mountains in search of a non-existent canyon served to them by AI before they were stopped by a local guide.

‘Something is lost, something is won’

At popular tourist destinations, AI technology is also changing how tourist flows are managed.

“Smart cities” use big data collected from “traffic control systems, public transport ticketing, mobile phone signals, museum ticket sales, overnight stays in hotels, even credit card companies” to understand people flow, Sigala says. “AI helps them to analyse mass amounts of data faster and in real time,” she says. “Smart cities” are turning to “smart tourism” by using destination apps to communicate back to tourists suggesting different routes, attractions and visit times to help manage hordes of visitors.

How these and other technological advances — like live translation earbuds — change the tourist experience remains to be seen. By removing the misunderstandings, the queues, the chance to get lost, will we inadvertently remove the surprises that make tourism unique? Sigala is optimistic.

“When I was first travelling Google Maps didn’t exist … if I reflect back, I say, ‘Bloody hell, how did I find my way with this paper map?’” she says. These days she’s not afraid of getting lost, she doesn’t lose time because she took a wrong turn, and she sees things she might once have missed. “Something is lost, but something is won.”

Mengni Fu says despite the rapid integration of AI, robotics and automation in hospitality and tourism, service with a (human) smile will still be important.

Her PhD is exploring how gen Z consumers and workers in China and Australia feel about the rapid technological innovation transforming the sector. Fu surveyed more than 1,000 people and says overwhelmingly people would prefer that new technologies replace certain tasks in the industry, not workers. But respondents, especially in Australia, feared for their job security.

And while Chinese respondents were more likely to embrace new technologies — given they’re more accustomed to them — they still opted for places and services where humans collaborated with technology. “Sometimes we still need that human warmness, we still need to talk with humans,” Fu says.

The FCA has issued near final rules on its new targeted support regime to address the UK “advice gap” and help advance its new “regulation for growth” agenda.

This cheat sheet provides a summary as to what firms need to do to apply for permission to conduct the new regulated activity of providing targeted support, including next steps, information about pre-application engagement with the FCA, and key points for firms to focus on when developing their application and a regulatory business plan.

Author: DA Press Office | 26 December 2025

The Department of Agriculture said Wednesday that investigation conducted on reports in Region I of “insoluble and floating” fertilizer was caused by improper product application, not product defect, easing concern over the integrity of government-supplied inputs.

The issue surfaced after a farmer in Marcos, Ilocos Norte, posted a video on social media showing fertilizer granules that appeared to float and were blown by strong winds toward a rice field embankment. The footage quickly fueled speculation over the quality of fertilizers distributed under government programs.

In response, the DA’s Regional Field Office I immediately launched a validation and monitoring activity on December 21–22, through its Agricultural Program Coordinating Office in Ilocos Norte. The team coordinated with provincial and municipal rice program coordinators and the municipal agriculturist, all with extensive experience in rice and corn production, to verify the claims on the ground.

The farmer involved, Esting Dela Cruz, did not initially identify the fertilizer brand in his post, although commenters pointed to “SWIRE.” Field validation later confirmed that the product used was DANAT Complete Fertilizer (14-14-14) procured through the local government unit.

Investigators found that the fertilizer was applied as a side-dress, despite being designed for basal application. According to the DA, this improper method—combined with windy conditions—caused the granules to remain on the soil surface and be displaced, creating the impression that the fertilizer was insoluble or defective. The team conducted an on-site briefing to explain the correct application process and prevent a repeat of the issue.

The DA has emphasized that all fertilizers distributed under its programs undergo mandatory quality testing before delivery, with additional re-testing and quality control carried out through DA laboratories or Fertilizer and Pesticide Authority-accredited facilities.

Following the investigation, Dela Cruz thanked the DA for its swift response and confirmed the fertilizer’s authenticity. He later used his vlog to share proper application practices. The DA said it will continue monitoring fertilizer use across the Ilocos Region and step up farmer briefings to ensure proper utilization and protect the credibility of government farm inputs. ### (By DA – OSEC Comms)