Learn How To Balance Energy Use With Sustainability Goals At Bisnow’s DICE East Event In May
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As artificial intelligence adoption increases, it is projected that data centers will more than double their capacity by 2030 to meet the demand for data storage and processing.
The International Energy Agency reported that data centers’ electrical use could reach more than 1,000 terawatt-hours in 2026, up from 460 TWh in 2022. This expansion raises concerns about the corresponding increase in energy consumption and underscores the importance of developing and implementing energy-efficient solutions.
VoltaGrid, a company providing clean and turnkey power and fuel solutions for microgrids, is finding strategies to meet this data center energy demand.
“At a time when data centers are in high demand and electrical utilities can’t grow fast enough, we need to find alternative solutions to the problem,” said David Bell, VoltaGrid director of utility and microgrid development. “Our rapid deploy microgrids for data centers provide reliability while being more energy-efficient.”
Bell will speak at Bisnow’s DICE East event at The Hyatt Regency Reston in data center-rich Northern Virginia. He will be joined by other speakers on a panel called A New Era of Power Demand: What Shift Will the Digital Infrastructure Face to Meet Growing Demand and AI Needs?
Register here for the event running May 21-23.
Bisnow spoke with Bell about data center trends, VoltaGrid’s backup solutions to meet data center power demand and how to prepare for a more AI-driven landscape.
Bisnow: What trends are you seeing with data centers today?
Bell: I’m seeing two major data center trends in speaking with our customers and partners. One is that data center locations are no longer dictated just by the proximity of fiber networks, but also the cost of land and having the utility to support it.
Another is that the data center industry in general is growing at a rate that the utilities just cannot keep up with. The demand continues to skyrocket, while electricity is becoming more scarce.
Bisnow: What are some of the challenges you're seeing with data center systems?
Bell: The push towards electrification is heightening the electricity demand, while simultaneous efforts to decarbonize are being incentivized as the cost of capital has doubled. Consequently, the future presents significant challenges for utility prices and reliability. We anticipate a scenario where utilities may face increased costs and potential reliability issues as they navigate these transformative changes.
Bisnow: What solutions does VoltaGrid have for new data centers that may face power supply issues while also trying to reduce their carbon footprint?
Bell: If the power supply is being delayed by the utility, then the best thing we have to offer is our speed to market, where we can install quickly. If a customer needs 200 megawatts, the average data center may take about three to five years to get that kind of power depending on the area and resources available. However, we can have that source of power for them in about a year.
Also, we can grow at the customer’s pace of construction. They might be building a data center out in 50 MW parcels. We have the flexibility and reliability to grow at the same rate as the building, which we can do in a more cost-effective and environmentally friendly manner.
As AI technology transforms the demand-side load profile, we anticipate a rise in transient loads. Ensuring that energy sources are equipped to handle these evolving demands becomes crucial. Drawing from our experience in other industries, where we manage 100% block load acceptance and rejections while maintaining power quality within the Institute of Electrical and Electronics Engineers Standards Association specifications, addressing AI block loads appears comparatively straightforward.
We are preparing for a hydrogen future as well. Some of our units are completely 100% hydrogen capable — we are just waiting for the hydrogen market to become more available and more affordable.
Bisnow: How is VoltaGrid planning for the future with data centers becoming more AI-driven?
Bell: We’ve been preparing for years, especially in terms of load fluctuations in data center facilities that could interfere with the power supply. I think more people will look at building microgrids to eliminate transmission delays and power utility delays.
Another aspect they'll pay more attention to is heat rates, which is the amount of energy used to create an electron. This will be crucial because the overall consumption of fuel will impact not only greenhouse gas emissions but also their total operating costs.
Our data center customers have spent millions of dollars to be highly efficient and provide 99.99% availability to their end users. AI can be used to monitor activity and also operational inefficiencies in the equipment. We are using AI to drive down the total cost of operations while improving reliability.
Our equipment can help data centers operate more efficiently with reliable readings and setting up parameters to get the best heat rate possible. AI can be a tool to help monitor these metrics and give people more of an understanding of how this directly impacts their operations. At VoltaGrid, we want to continue creating a pathway to help our customers lower energy consumption, reduce costs and promote sustainability.
Bisnow: What inspired you to attend Bisnow’s DICE East event?
Bell: I’ve been going to Bisnow events for the past year. I always look forward to the DICE events because it has a great forum to network with other people in the field. The panel discussions are always top notch, and I'm able to see new trends that are coming to market.
This article was produced in collaboration between VoltaGrid 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.