Meeting Data Center Power Demand At Bisnow’s DICE Event On Sept. 19

Due to the growing demands of artificial intelligence and other data-heavy uses, EPRI predicts that data centers will consume 9% of U.S. electricity generation by 2030, more than double the amount used today. 

Clarke Energy, a power generation division of Kohler, is working to develop energy solutions to avoid supply challenges on the electric grid caused by data centers. 

“Data center construction is at an all-time high, and we need to adjust how we supply power with better backup solutions and alternative energy sources to meet today’s demands,” said Alan Howard, senior director of sales at Clarke Energy.

Howard will share his thoughts at Bisnow’s DICE Midwest event at the Hyatt Lodge Oak Brook Chicago on Sept. 19. He and other panelists will discuss the evolution of backup solutions in data centers. Click here for details. 

Bisnow spoke with Howard about today’s power challenges, trends he's seeing in data center backup solutions and how Clarke Energy is helping to meet this demand. 

Bisnow: What trends are you seeing in data center backup solutions?

Howard: We're seeing a transition from backup energy to on-site power generation units, or prime power. Many data centers are becoming grid-constrained so the utilization and power consumption increase is applying a lot of pressure to the grid. As a result, they continually need backup power, but they also need prime power solutions. At Clarke Energy, we are providing a balance between those solutions. 

Historically, we have seen data centers are either running diesel or gas-fired backup units to supplement for a lack of energy supply from the grid. Now we are able to install both these units as well as prime power solutions to construct a hybrid energy solution to optimize efficiency. 

Bisnow: What do you think the hot topic will be at the event?

Howard: Future site locations will be key when it comes to power supply. We have to figure out where the hubs are going to be in the Midwest. How are we going to distribute power? How can the utilities in the Midwest support the growth of the data center market? Are there differences between the utilities in the Midwest and other locations? 

Data center hubs have been established on the West Coast and the East Coast, but we're now seeing the industry reach Chicago and the Midwest region. We must have a plan in place to facilitate this growth and also be aware of the potential restrictions.

Bisnow: What are some of the power challenges today? How is Clarke Energy providing solutions? 

Howard: The main challenge we face today is the amount of power required, especially with the transition of data centers, not just static data with predictable loads, but also catering to the AI space, which has unpredictable step load power requirements. This is another challenge because utilities are constrained with what they can distribute. Their primary consumers are residential and commercial businesses.

One thing we do know is that electric utilities are designed to distribute power in a constant load profile. It is possible for them to handle the power node changes for data centers, but if they cannot efficiently distribute that power due to aging infrastructure or capacity then the onsite application has to match the characteristics of the operating profile on the grid. Clarke Energy can provide prime power solutions with natural gas reciprocating engines ranging anywhere from 10-megawatt to 250-megawatt solutions. In essence, we’re able to give data centers an alternative to simply trying to rely on the utility grid.

From a service standpoint, we are also able to provide on-site operation and maintenance support for the facility if they require a prime power application. Additionally, we can carry out early feasibility studies where we can accurately predict how much it would cost to install and operate a prime power solution versus a utility application. Upon delivery, we can then provide a long-term performance guarantee and take on the full engineering, procurement and construction of the project. By doing this, we can wrap the entire project, from conception to design and delivery, and then through the lifetime of the site with long-term maintenance. 

Bisnow: How are you providing alternative energy sources and meeting customer demands today?

Howard: We’re continuing to see growth where there are variable load requirements, especially with AI, where transient loads are more difficult to manage on an independent power application. Knowing this, we are looking at alternative energy sources. One example would be utilizing batteries to take peak loadings, and then matching alternative energies to what we classify as our prime and backup power, mainly diesel and gas.

While we’re still learning how to bridge the gap to manage peak loads and dips with a battery-type solution, we can also look at alternate fuel sources. Although we're operating on natural gas, we have a product that can operate on hydrogen and eventually, long-term green energy. Once the hydrogen market is stable and there are viable offtake agreements we can transition to a zero-emission solution. On the diesel side, Kohler is leading the way with hydrotreated vegetable oil, or HVO, fuel options, so collectively we are pushing the boundaries for achieving cleaner energy solutions.

Bisnow: What do you see for the future of data center power sources, and how do you think Clarke Energy will play a part in this evolution? 

Howard: Data centers were mainly colocation spaces, but now we’re seeing them turn into big hybrid energy consumers. As conveyed, the utility system is already constrained, so the question becomes how do we move forward in the absence of utility power? Can we utilize a bridge-type solution until the utility system is sufficient? That is where Clarke Energy and Kohler can assist. 

We also need to evaluate what the data center consumers need in order to assist them in determining what their load profiles and operating costs are. At Clarke Energy and Kohler, we are collectively working towards providing energy solutions that meet the needs of the ever-changing data center landscape.

The majority of these large-scale data center projects are driven by finances, but then you must also look at the carbon offset and consider the environmental impact. We would like to think that we are at the forefront of driving the clean energy transition, and we can provide solutions to help our clients meet their ESG goals.

Click here for more information about the event. 

This article was produced in collaboration between Studio B and Kohler. 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.