Data Center Balances Growth and Energy Transition Goals
As an energy manager responsible for a large data center company, you face the constant challenge of balancing economic growth, energy demand, and achieving your energy goals. The exponential growth of data centers, driven by advances in Generative AI and the ever-expanding cloud computing industry, has significantly increased power consumption. This surge in demand necessitates finding innovative solutions that not only support your company's growth.
The Power Conundrum
Keeping pace with the growing energy demand of data centers while pursuing energy goals requires careful consideration. Estimates suggest that by 2030, U.S. data centers may require more than 50 gigawatts (GW) of energy to operate.1 The key lies in finding solutions that are economically viable and reliable.
Breaking Down the Challenges
Balancing Growth with Economic Viability
Balancing growth with economic viability is a core concern for energy managers. To achieve this balance, it is crucial to explore cost-effective energy resources while maintaining a reliable and scalable power supply for your data centers. This may involve strategies such as optimizing energy management, investing in energy-efficient technologies, and exploring renewable energy alternatives. By considering these solutions, you can pursue both growth and economic sustainability.
Meeting Energy Goals
To meet your energy goals, consider options such as incorporating renewable energy sources, implementing energy-saving measures, and exploring different contract structures like power purchase agreements (PPAs).
Ensuring Reliable Power Supply
Maintaining a reliable power supply is essential for uninterrupted data center operations. Building redundancy into your power infrastructure, integrating backup energy sources, and deploying intelligent energy storage solutions can help ensure six nines+ power reliability. Assessing the resilience of your power infrastructure and implementing appropriate contingencies can mitigate the risk of outages and safeguard critical operations.
Optimizing Energy Management
On average, 45% of a data center’s operating expense can be attributed to power, which makes controlling and optimizing energy costs crucial. Optimizing energy management is vital for cost control. Advanced energy management software like our NextEra 360™ platform, along with monitoring and analytics systems, can provide valuable insights into energy usage patterns. By closely monitoring energy consumption, identifying inefficiencies, and implementing energy-saving measures, you can reduce operating costs while maximizing energy efficiency.
Leveraging Scale and Innovation
Managing the energy needs of a large data center company across multiple locations requires innovation and leveraging scale. Collaborating with industry partners, exploring emerging technologies, and investing in scalable power solutions can help address the unique demands of your data centers. Additionally, staying informed about industry trends and regulatory developments can help anticipate future challenges and position your organization for success.
How NextEra Energy Services’ RenewableLink® Product Supports Global Data Center’s Sustainability Goals
One of our large data center customers recognized the link between both constructing and operating state-of-the-art data centers and the environmental impacts that go along with it. With the construction of two new projects in Texas, the Firm needed renewable power within the state to ensure their buildings met their sustainability metrics. Because local community support is also important to them, they wanted the renewable power to be sourced from a Texas project.
Solution Highlights:
- NextEra Energy Services worked to secure a RenewableLink product structure with the Firm’s energy consultant. This product structure provided the simplicity of a traditional energy supply contract inclusive of renewable energy purchasing options, less the risk of onsite installation or significant investment. Incorporating new renewable assets as a part of a retail electric supply agreement provided the benefit of a long-term renewable transaction without the complications and risk of a traditional power purchase agreement (PPA).
- The purchase includes a solar offtake of 30 MW (~75,000 MWh) and wind offtake comprising 10 MW (~33,000 MWh). This resulted in approximately 85% of the firm’s ERCOT deregulated load in North Texas being supplied by renewable energy sources at the end of 2023.
Meeting the Needs of Hyperscalers and Data Center Operators
Finding economically sustainable ways to power your data center locations while achieving energy goals can be complex. We can help develop customized and comprehensive energy management solutions that blend traditional and renewable energy sources. Our solutions are designed to mitigate exposure to energy market volatility and reduce energy costs. By collaborating with us, you can ensure a reliable and cost-efficient power supply while achieving your energy goals.
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