Data Center Developers Adopt Onsite Power Solutions to Overcome Growing AI Electricity Demands
Data center developers are increasingly adopting behind-the-meter power solutions to overcome the rapid growth in electricity demand driven by artificial intelligence. As the US grid faces constraints, companies are turning to onsite generation, such as gas turbines, reciprocating engines, and fuel cells, to provide reliable power for AI infrastructure. Industry reports indicate that gas turbine orders are currently facing long lead times, with some deliveries not expected until 2032. To mitigate these delays, developers are increasingly turning to packaged boilers and steam turbines, which offer shorter lead times and proven technology. For example, Wes Cummins of Applied Digital is utilizing a boiler and steam turbine combination to power new facilities in North Dakota. In Europe, the European Commission is considering regulations to force tech giants to invest in their own clean energy supplies. Vice President Teresa Ribera noted that the rapid demand for AI electricity is creating tensions with local communities and rising costs. To address these challenges, developers are also exploring diverse energy sources, including battery energy storage systems, geothermal power, and small modular reactors.