One thing is for sure: Virginia is one of the hottest data center markets in the nation. In fact, some experts refer to Northern Virginia as “the data center capital of the world.” 

If you know anything about hyperscale data centers, you know that it takes a lot of power to fuel them. As cryptocurrency and generative AI grow in popularity and scope, the power needs of data centers are only going to increase.

Data Centers Are to Blame for Grid Stress

In many markets, including Virginia, data centers have begun to strain the energy grid, making officials question whether more infrastructure is needed to handle the influx of these massive projects. In Virginia alone, data centers account for over 20% of the electricity generated by the largest utility provider in the state. 

Each center needs somewhere between 100 and 300 megawatts of electricity to operate. One utility has petitioned the state to be allowed to build new gas plants to meet the growing energy demands of these centers. 

However, these plans have prompted outcries from environmentalist groups, who object to the extra grid infrastructure that may accompany those plants. But without this infrastructure, there could be higher rates, more pollution, and even more strain on Virginia’s already stressed grid.

Could Microgrids Hold the Key to Pleasing All Stakeholders?

For many, microgrids have emerged as a clear solution. These independent mini-grids are in a unique position to benefit both the environment and data center developers as few things can. 

First, microgrids are fueled by a mix of natural gas and renewable energy from solar, wind, and battery power. This helps with decarbonization goals, as microgrids are far more helpful to those goals than any diesel-powered backup generator or new gas plant.

Additionally, microgrids provide versatile on-site power generation for large data centers. They can either be integrated into current infrastructure or work as an island, providing a level of flexibility that takes a lot of stress off the grid. 

Microgrids can also send energy back to the grid during times of peak use, helping utilities avoid the need to build new power plants. 

They are so excellent at powering data centers that even tech giant Microsoft is betting on them for some newer developments. The company already has plans to run a 100-megawatt microgrid at a new project in San Jose. 

“The microgrid will also run on 100% renewable energy acquired through San Jose Clean Energy, a community choice aggregation, and will provide grid services,” says Allan Schurr, chief commercial officer for microgrid industry leader Enchanted Rock. “This project can be a model for other data centers,” he adds.

Virginia Needs to Keep Its Promise to Work Toward a Cleaner Future

The Virginia Clean Economy Act of 2020 requires the state to generate 100% of its electricity from renewable sources by 2050. To some, allowing utilities to build new fossil fuel plants means backtracking on that mandate. They believe that policymakers need to do more to align data center expansion goals with the promises outlined in the act.

A partnership where microgrids allow data centers to produce power instead of consume it may be just what is needed to continue the work toward energy resiliency without sacrificing sustainability.

To read more, see the original article by Lisa Cohn.