VoltaGrid’s microgrid, featuring multiple natural gas-powered generators, delivers a robust 70 megawatts of power.
Rapid development of data centers is straining domestic power supply. As a result, operators have been forced to rethink theirenergy supply strategies.
One solution that is gaining traction is generating electricity independently behind the meter through microgrids while waiting for local municipalities and utilities to catch up to meet the increasing demand.
“The solution leverages a fuel that is plentiful today, natural gas, while aligning with sustainability goals,”VoltaGridVice President of Data Center and MicroGrid Development Dave Bell said. “By working in tandem with the traditional utilities, it offers a resilience that supply-constrained grids cannot currently provide.”
Bell will be one of the speakers atBisnow’sData Center Investment Conference and Expohosted in Northern Virginiaon May 20-22. Bisnow spoke with him to get his take on how data center operators can access rapid, reliable, short-term bridge solutions to their immediate power needs.
Register to attend the event here.
Bisnow: Tell me about some of the challenges data center developers face.
Bell:There’s a supply problem and a demand problem. Until recently, a data center that required1 or2 megawatts was considered big. That’s no longer the case. Data centers have grown in scale and scope, and utilities have had a hard time catching up. They are being asked to provide 100 MW or 200 MWor, in some cases, gigawatts of power to a single location.
The way our grid was designed, it was never intended to deliver that much power to a single point. It’s not just the volume of power these data centers require, it’s also that the demand is so concentrated, creating infrastructure bottlenecks.
Three systems — power generation, transmission and distribution — all require major upgrades.
Bisnow: What about the demand-side issues?
Bell: The challenges stem from the way AI data center loads are operated. They require a voltage and frequency that is perfectly consistent, which is difficult to guarantee.
Bisnow: As an energy provider, how does VoltaGrid help data centers get the power they need?
Bell: First, we help our customers understand what their power demand actually is. That depends on which kinds of services the data center is supporting. Is it artificial intelligence? Cloud services? Is it a large language model or an inference model? The details of the business determine the power requirements.
Second, we determine the intended speed to market. Folks come to us asking, “How quickly can you build?” What they are really asking is whether we can beat the grid in terms of speed. Knowing their timeline helps us conduct engineering analysis at the front end, which informs which solution we’ll offer. We figure out the fastest and cleanest power that best serves the client’s needs.
Right now, the most plentifully available fuel on the market is natural gas. Natural gas gives clients the reliability they need.
We have a midstream business that can build gas pipelines from the transmission system to the end user to get fuel supply to the customer.
Depending on the state and jurisdiction, our permitting team ensures the process is conducted properly and the client receives the necessary approvals.
We are experts at figuring out how to fit a lot of power generation into a tight space. While in places like Texas, we have more space to play with, in other markets our engineers are being asked to wedge our facilities between the fire hall down the road and the community pool adjacent to the client’s site. We are very good at this.
Then the midterm goal is to get everything interconnected and up and running. We operate the power-generation facilities until the time when grid power becomes available.
Finally, we decommission. We always plan for decommissioning upfront. We clean up after ourselves, like a good houseguest.
Bisnow: As data centers’ power demand continues to grow, what are more sustainable ways to meet that demand?
Bell: Sustainability is a funny word. In order to sustain something, you have to be productive in it. So you can’t both be sustainable and cutting production.
Among the technologies available today, natural gas offers the most scalable, reliable and clean-burning option for behind-the-meter solutions.
Even behind the meter, our solutions tend to be nine to12 times cleaner on nitrogen oxides, or NOx, emissions than the grid itself, depending on jurisdiction and location. NOx is the emission that creates the most intense greenhouse effect, so reducing it has a potent positive impact.
Focusing on reducing heat rate is another effective sustainability goal. Heat rate refers to the amount of fuel energy required to produce one unit of electricity. The lower the heat rate, the more efficient the system is, meaning fewer emissions and lower cost.
Overall, I would add that just because natural gas is abundant right now doesn’t mean we should be wasting it. Waste not, want not.
Bisnow: What inspired you to participate in this event?
Bell: I’m looking forward to seeing old friends. It’s been a busy time, and it will be good to catch up with folks.
Also, I’m acutely aware that I can’t learn while inside my own little box. I need to talk to industry leaders, hear what they’re seeing and how they’re feeling. Having those types of discussions over drinks, dinner or at a Bisnow event is important. Otherwise, I’m just confirming my own biases, you know?
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This article was produced in collaboration betweenVoltaGrid and Studio B. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.
