The feasibility of microgrids and their potential advantages over nuclear-powered energy for hyperscale data centres is a critical discussion point in the energy sector.
Devan Moodley, Global Director – Power Systems & Infrastructure at Black & White Engineering, shares his insights on the evolving energy landscape and what it means for data centre operators.
Microgrids vs Modular Nuclear: What’s the best option for Hyperscale Data Centre Power Infrastructure?
Microgrids and grid independence have long been key considerations for major utility providers and power consumers. The growing integration of behind-the-meter renewables has shifted the role of distribution network operators, creating increased competition for grid connections. Data centre operators are now among those seeking alternative solutions to secure a reliable power supply.
Microgrids typically integrate renewables at the end-consumer level within the distribution network, usually at low voltage. These systems rely on a dedicated power source, historically including solar, diesel and gas generation. However, the large-scale power demands of hyperscale data centres require generation connections at the medium-voltage level, which only large gas turbines can currently support.
With net-zero targets pushing the transition away from gas, nuclear power is gaining attention as a potential solution. The development of modular nuclear generation plants is advancing rapidly, and if successfully deployed, they could provide clean, reliable energy at scale. This could have a transformative impact on both utility providers and energy-intensive industries such as data centres.
In the near term, supplementing grid supply with gas-powered generation may still be necessary. However, the extent to which this remains viable will depend on evolving environmental regulations. As cleaner energy solutions progress, microgrids, modular nuclear and other emerging technologies will play an essential role in addressing capacity challenges in the data centre sector.
Alternative Power Solutions That Haven’t Gained Mainstream Adoption
Most data centres are built in urban areas, while power generation facilities are typically located near fuel sources. This applies to wind, solar, coal and other energy sources. Finding alternative solutions that avoid significant drawbacks remains a challenge.
Open-cycle gas turbine plants are one potential option, offering flexible, on-demand power. However, they come with challenges such as emissions, noise pollution, and reliance on a stable gas supply. Another consideration is whether data centre operators are willing to host generating plants on-site, which would require a shift in operational strategy.
As the industry evolves, it is becoming increasingly clear that data centre owners and operators may need to transition into generating asset owners to secure reliable and sustainable power.
Managing Power Demands in the AI Era
The accelerating adoption of AI is driving unprecedented power demand. As data centres grow in scale and complexity, new solutions will be required to improve efficiency, including the development of energy-efficient chips, advancements in cooling system design and optimisation of electrical infrastructure.
One of the biggest challenges ahead is the introduction of new regulations. Stricter policies on carbon emissions, energy sourcing, and grid reliance could reshape the data centre industry. Developers and operators must take a proactive approach to future-proofing their facilities.
The industry is at a turning point. As energy demands continue to rise, forward-thinking power strategies will be critical in securing a stable and sustainable future for hyperscale data centres. To explore how these changes could impact your data centre infrastructure, get in touch with our team.