Data Center Leaders Embrace Onsite Power Generation for Future Growth
Key Ideas
  • Data center leaders foresee a significant shift towards using onsite power generation as a primary energy source by 2030, driven by grid connection delays and the need for faster power access.
  • Bloom Energy's survey highlights the increased interest in fuel cells for data centers due to their quick deployment, lower emissions, and power density advantages.
  • The report also mentions the growing expectation for emerging technologies like geothermal power, small modular reactors, and gas generation with carbon capture and sequestration in future data center projects.
  • Data center leaders are willing to invest more in faster power access, recognizing the strategic advantage of being online ahead of competitors particularly for AI data centers.
Data center leaders are anticipating a significant change in the power generation landscape, with a survey by Bloom Energy revealing that approximately 30% of data center sites are expected to rely on onsite power as a primary energy source by 2030. This shift is driven by delays in grid connections and the need to enhance power availability amidst an aging electric grid. The report also notes an increasing trend in data center announcements featuring onsite power, emphasizing the importance of faster power access in project development. Fuel cells are gaining traction in data center projects due to their quick deployment, lower emissions, and greater power density compared to traditional turbine technologies. Despite being relatively more expensive, data center leaders prioritize fuel cells for their efficiency in deployment and permitting processes. Moreover, emerging technologies like geothermal power, small modular reactors, and gas generation with carbon capture and sequestration are being considered for future data center projects post-2030. Data center leaders acknowledge the crucial role of faster power access in securing a competitive edge, especially for AI data centers. Investments in technologies such as fuel cells and emerging power solutions reflect a strategic approach towards staying ahead of the competition in the rapidly evolving data center landscape. The industry expects a substantial increase in data center capacity in the US in the next five years, with a shift towards onsite power generation to meet the growing demand for reliable and efficient power sources.
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