October 24, 2024

Data Center Growth Could Spell Energy Disaster

Artificial intelligence is the name of the game these days, at least when it comes to the biggest corporations. To keep up with the demand for AI, more data centers have been built throughout the country. These aren’t the data centers of old, however. To function, they require significant numbers of megawatts and even gigawatts.

Artificial intelligence is the name of the game these days, at least when it comes to the biggest corporations. To keep up with the demand for AI, more data centers have been built throughout the country. These aren’t the data centers of old, however. To function, they require significant numbers of megawatts and even gigawatts.

The United States central power grid is already having trouble keeping up with the energy expenditure. Outages are a real concern, and none of that is going to get better without making some structural changes. 

The Real-World Cost of Data Centers

A data center that requires 1 gigawatt to function means the grid has to provide it with the capacity of half a nuclear plant or four natural gas plants. Those are not just ethereal numbers without a concrete cost. 

In a recent Bain & Co. report, the consulting firm states that meeting this new demand could cost utilities and other power generators trillions of dollars. They would have to invest in new capacity. 

But no matter what type of energy is used — wind, solar, or gas — there’s no going around the real-world price. Even restoring nuclear power plants wouldn’t make the bottom line better. 

While not every data center reaches the 1-gigawatt threshold, even medium-sized ones are seeing exponential growth in their energy requirements. Earlier this year, Goldman Sachs forecast that new data center capacity could increase by close to 50 GW by the end of this decade. 

But is it all doom and gloom? Not when you bring microgrids into the picture. 

How Microgrids Can Keep the Lights On

Microgrids are quickly becoming the go-to solution for the increases in power requirements. Companies are working with developers to find sustainable solutions, and one of the companies leading the way is Microsoft. 

Microsoft is teaming up with microgrid developer Enchanted Rock to create a data center that is fully powered by renewable natural gas. The facility will have the largest natural gas microgrid in the country. It’s Microsoft’s latest effort in its search to become carbon-negative by 2030. 

Microgrids aren’t just beneficial for the central power grid. They also give companies more control over their energy supply. This ensures that they have continuity in their services. That’s without even mentioning the amount of money companies can save by being able to fuel themselves.

The chief commercial officer of Enchanted Rock, Allan Schurr, has always recognized the value of helping to decentralize the power grid to protect companies. 

He formed his microgrid business in 2006 and now has dual-purpose grids that function on natural gas and renewable natural gas. Enchanted Rock also has monitoring systems in place that provide the safeguards that all companies need. 

Schurr understands the worries of the investment necessary in adapting existing infrastructure, which is why his company offers energy-as-a-service, a turnkey solution suitable for most businesses. 

The future is quickly approaching and, with it, increasing energy needs. Microgrids offer the chance to stave off a crisis and keep the power on.  

Learn more by reading the original article at EnergyTech.

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