In recent years, utility companies have reduced their focus on shoring up the grid for communities across America. Instead, they are now using their resources to meet demands from the rise of hyper-scale data centers. 

This boom, largely driven by the advancement of artificial intelligence (AI) development, has led to an unprecedented need for more physical infrastructure, including significant grid enhancements. Goldman Sachs predicts a new load of 47 gigawatts in the next five years or so — the equivalent of 47 nuclear power plants.    

As a result, data centers are working to balance two critical goals: reliability and sustainability.

The Challenge of Pursuing Reliability and Sustainability

While the world’s top tech companies are vying for the top spot in AI innovation, they must all contend with the availability of utility-generated power. Recently, the energy industry has begun to trade coal and nuclear power for cleaner energy sources as public sentiment rails against high emissions and pushes for sustainability. 

In an effort to improve sustainability, industry giants have begun favoring natural gas because of its ability to lower carbon dioxide emissions and meet decarbonization goals. Still, some fear this doesn’t go far enough. However, manufacturing and reshoring electric vehicles adds to overall energy demands, and natural gas could be the only way to meet them for now.

Ian Walch, Director of Strategic Partnerships and Solutions at Enchanted Rock, insists, “To ensure power availability doesn’t hinder the growth of these essential industries, reliable fossil-fueled generation, such as natural gas, is crucial.”

Other Problems Associated With Data Center Growth

This dilemma presents the possibility of far more issues than just data center growth. The fact that these massive projects could account for up to 10% of the energy load in the future has led to fears that everyday consumers will become an afterthought to utility companies.

Many worry that households in the surrounding communities will face rising rates to subsidize infrastructure projects and other energy needs. Some utilities are already petitioning lawmakers to allow them to bill customers for the extra costs they will face trying to meet data center power demands. 

What Happened, and What Happens Next?

In hindsight, some experts believe that the growth of cloud-based servers to ensure that more Americans can work at home without interruption should have served as a warning of what was to come in terms of data center growth. Others still think there is no way anyone could have seen this coming. 

Regardless, everyone should ask what will save the energy industry from data center encroachment. Some believe that AI will reduce loads by making infrastructure more energy-efficient. However, that may not be enough to stave off a crisis. 

Others have suggested that a switch to renewable energy is the answer, but it may not be reliable enough to use as backup power for large data centers. Some jurisdictions are investing in hydrogen and biofuels, but no one knows when that infrastructure will be available.

Can Microgrids Save the Data Center Industry?

One readily available solution that some data centers have used to generate power successfully is microgrids. These small-scale, grid-independent power systems can provide reliable and adaptable energy without the need for more utility-based infrastructure. 

Best of all, they can use a variety of fuel sources, including natural gas, solar, and batteries. As the power crisis intensifies, the innovative technology behind microgrids can undoubtedly transform the way even the largest corporations pursue their dual goals of growth and sustainability.

To learn more about this topic, read the original article by Rod Walton.