Data Centers: Growing Pains?
Data Centers: Growing Pains?

Data Centers: Growing Pains?

Are your energy needs expanding beyond just standby power? Here’s what you can do. 


By David Rush, Senior Account Manager, Cat Electric Power | Posted: January, 2025 

It’s safe to say the energy landscape is changing. When I think about my 13-year career working with data centers, the most prominent and significant changes have taken place in the last 24 months. The data-driven society we live in, from streaming devices and smart appliances to AI processing, continues to move demand for data centers in just one direction: up.

As data centers experience this growth, utility power is no longer a given. Today, there’s no guarantee the local electrical grid can meet these increased power needs. In fact, many utilities I’ve talked with say it’ll be three to five years (or longer) before they can bring the required amount of power online.

That puts data center customers in a tricky position. How can they continue to expand and grow if there isn’t enough power and moving sites isn’t an option?

The answer includes rethinking power options, and that means considering the transition from using power assets for largely backup purposes to employing them as a primary power source. That’s a big change from the status quo.

If you’re in a similar position, here’s some advice on how to navigate the transition.

 


1.   Bridge The Gap

First things first: if you need power quickly, and your utility cannot provide it, you should be considering a “bridge to grid” solution. This refers to “bridging the gap” until the local grid can provide sufficient power. These solutions can be made up of multiple power generation assets — including diesel and natural gas generator sets or turbines.

Why This Works

The beauty of a bridge-to-grid option is that it takes only a matter of weeks to install and can remain in place for weeks, months or years. That allows you to set up or expand a data center operation, address growing power requirements and ensure reliability in places you wouldn’t have been able to do so before.

2.    Consider Your Emissions Requirements

One concern I hear from customers embarking on this change is the impact on emissions. Switching from standby to prime power requires you to run your power generation assets more frequently, and that can affect your site’s overall greenhouse gas (GHG) output — a challenge for data centers tasked with meeting evolving 2030, 2040 and 2050 sustainability goals.

Good News: You Have Options

To support your sustainability journey and reduce GHG emissions, you can:

- Add (or retrofit) a Clean Emissions Module (CEM) to your diesel generator set to support Tier 4 emissions compliance, including
  reduced particulate matter and NOx emissions.

- Run your generator sets on biofuels, 25% hydrogen gas blends, or even 100% hydrogen.1

- Install microgrid solutions where possible, maximizing your use of renewable energy sources.

3.    Make The Economics Work

Right now, your focus is likely capacity, but keep in mind that a power solution can be more than just a resiliency play. If you plan properly, it can benefit you economically, too.

For example, once your site is connected to the grid, what is your plan? One option is to transition your bridge-to-grid assets to a more traditional standby role and then install a distributed energy management system (DERMS) on them, which can save or even make your business money.

Why This Works

With a DERMS in place, your power generation assets will be automatically dispatched when it makes the most financial sense, like during peak electricity usage when grid prices are at their highest. This helps your business avoid peak charges and lower overall energy costs. There’s also the possibility to sell excess energy back to the grid. Either option can help you offset the initial capital cost of equipment and generate long-term savings.

4.    Create Your Long-Term Plan

Often customers ask me: How can I address my immediate needs without ending up in a similar situation in a few years’ time? My answer: Plan 15 years out.

I encourage and work with customers to create a plan that considers:

- Site requirements: Do you have space to expand? Do you have space for renewable sources?

- Growth projection: How much do you need to expand in the next 15 years? How much energy will you need?

- Emissions reporting: What are your emissions targets? How can you achieve them?

- Overall landscape: What local requirements might you need to comply with in the future? Do you have a plan if that happens?

It is a time-intensive process, but once completed you’ll have peace of mind that you should have enough power to see you through.

Whether you’re ready to make the switch from standby to prime power at your data center today, or simply weighing options for your next development or expansion, we’re here to help. We’ll work with you to find the right combination of assets and asset management software that fulfills your power requirements reliably and cost-effectively. Connect with one of our experts to get the process started.

 

1Biofuels reduce life cycle GHG emissions in the fuel value chain; GHG emissions at the tailpipe are essentially the same as with traditional fuels. As compared to traditional fuels, hydrogen may have significantly reduced NOx and zero-exhaust greenhouse gas emissions at the tailpipe.

 

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David Rush

Contributor

David Rush is a Senior Account Manager on the Large Electric Power, Global Accounts Team. David is responsible for delivering electric power solutions that enable customer success, across the globe. David has worked in Large Electric Power for over a decade both internationally and nationally, primarily in customer facing roles, helping provide mission critical standby solutions across industries, with a focus on the data center industry over the last 6 years.

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