Powering AI data centers effectively

A new data center project went to their local utility to arrange for power and was told that there is not sufficient power available and won’t be for some time. This incident didn’t happen to a facility in the middle of nowhere. It happened in Virginia, which boasts the highest concentration of data centers in the world.

A data center operator in the southeast U.S. was told it would take five years to be provided the power needed for a new facility. The timeline included two years in equipment lead times.

Such scenarios are becoming increasingly common at a time when data centers have entered a period of unparalleled growth. Trends in the data center industry such as artificial intelligence (AI), ever increasing cloud storage, liquid cooled processors, and high operational resiliency and sustainability requirements are placing a severe strain on the power grid.

According to McKinsey, the United States is the fastest-growing market for data centers, with their overall power demand forecasted to rise from 25 GW in 2024 to more than 80 GW by 2030. The industry already consumes more than 2% of total electricity usage in the U.S. Some analysts believe it could climb to be nearly 8% or greater by the end of the decade, with AI computing and its adoption being key drivers. It has become clear that the AI revolution will only take place if there is enough electrical power is available and if grid infrastructure is capable of serving it.

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Data centers can’t wait years for power. To meet growing demand, it must be completed quickly, often in under two years. Siemens Energy’s portfolio offers the necessary power and equipment, ensuring timely and efficient execution.

Several trends are on a collision course:

Increased power demand to support AI, its adoption and the associated transient load fluctuations
Adding necessary resilience to the grid
Growing desire for sustainability and carbon neutrality

The quantity of power needed to support the AI revolution will be difficult to obtain due to lack of generation, scheduled closure of coal plants, fully subscribed transmission lines, and long lead times for power generation and high voltage transmission equipment such as gas turbines, circuit breakers, static synchronous compensators (STATCOMs), transformers, and other critical grid infrastructure equipment. Many equipment supply chains can stretch up to 36 months and longer. Data center operators and developers need a reliable partner who can help them overcome these challenges.

Once the equipment is onsite, the problems aren’t over. There remains the issue of finding trained labor that can correctly install, commission, and integrate the electrical equipment with the grid and the needs of the data center.

The traditional channels for acquiring power are proving to be too slow for modern data centers. These data centers need tailor-made energy system designs that can deliver power faster, are economically viable and environmentally friendly. These solutions include behind-the-meter electric generation, where a dedicated power generation facility produces the electric generation its host data center requires.

These energy systems must be carefully planned using performance models, component cost models, and optimization objectives to ensure the best possible outcomes for your data centers. Site-specific input data, any mandated renewable generation profiles, and the load profiles of the data center and the local grid must be analyzed to create optimal capacities, resiliency and reliability. Power availability must be considered strategically in the short, medium, and long-term.

If power is needed short term, trailer-mounted gas turbines and generators can be delivered, installed, and operational in a shorter lead time. Designs can incorporate options such as combinations of solar PV, wind turbines, battery storage, H₂-ready gas turbines, and fuel cells. These solutions enable data centers to not only obtain the power they need but to also move rapidly towards the achievement of 100% decarbonized operations.

The biggest challenge is finding a way to take the time out of data center construction. It becomes paramount to find a partner that offers a broad portfolio that spans electrical infrastructure, power generation, energy services, construction services, software/controls, installation/commissioning, consulting, advisory, repair, and maintenance services – everything a data center needs to add more electrical capacity rapidly and shorten project timelines.

Reliable power supply for data centers

Data centers are already the backbone of our digital world. In the years ahead, their importance is destined to grow significantly as they are the engine that drives the AI era. At Siemens Energy, we understand the unique challenges faced by data centers in satisfying their almost insatiable demand for power and in obtaining the electrical equipment and services required to support their operations. We offer a diverse portfolio of reliable and resilient technologies to address these needs.