Navigating Data Center Energy Constraints: Considerations for On-Site Prime Power

Energy-constrained grids along with long queues for adding new capacity and loads are forcing some data center developers to consider on-site prime power technologies and fuels. Some options include natural gas generators/turbines, combined heat and power (CHP) systems, fuel cells, geothermal, and eventually small modular reactors (SMRs). These “energy parks” are sometimes combined with renewables (wind, solar) and energy storage to form hybrid, integrated systems. Technology factors aside, there are strategic considerations as well. These include preferences on owned vs. outsource, site selection, and sustainability goals. Also, availability of a grid connection and regulatory require-ments/limitations (e.g., load flexibility, tariff structure, limitations on self-generation) will further impact your energy strategy, data center design, and long-term operations. This paper provides guidance to data center executives, developers, and owners on forming and selecting a prime power strategy.