Powering data centers – “the engines of modern life”

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These are fascinating times to be working in the data center industry. What's more, these days it's not unusual to see data centers featured on the front page of national newspapers. Take for example this recent news article from the BBC, announcing that data centers in the UK are set to be classified as critical national infrastructure - joining the likes of emergency services, healthcare systems, energy and water supplies. All of this tells me that the world's spotlight is firmly on data centers, with our industry set for exciting new adventures in dynamic demand and growth.

London calling

Talking of the UK and exciting adventures, this September I had the pleasure and privilege of traveling to London for DataCenterDynamics' DCD Connect 2024 event, where I participated in numerous insightful data center conversations, presentations, and interviews. Reflecting on my trip, a personal highlight was my one-to-one fireside chat session, hosted by Dan Loosemore, CEO of DatacenterDynamics. During our discussion, we covered plenty of ground, but we concentrated on those themes that are seemingly redefining our industry: namely the impact of AI on data centers and our industry's fascinating relationship with power.

Perceptions and misconceptions

Dan opened up our fireside chat with the burning question about current public perceptions around artificial intelligence and its potential impact upon our industry. My perspective on this is, that while the public currently seems afraid about the power of AI, like some dark force in a dystopian science fiction novel, the reality is very different. AI will in time prove to be a force for good that can help us in all aspects of our daily lives, effectively freeing up our energies so that we can be more creative and fulfilled with our time.

Another industry misconception that I was keen to address in London, is the belief that power sources are unable to keep up with the rapid rate of data center growth. And while data center growth is currently at around 15%, compared to utility growth at approximately 2%, it's also true that utilities are for the most part, not operating at 100% capacity, because there simply isn't the need. In any case, we are seeing many innovative technologies emerge that are designed to complement traditional prime power sources - like peaker plants, grid storage, onsite storage, and back-up power scheduling, all of which are slowly becoming commonplace. And then there's the array of prime power alternatives that our industry will most likely be benefitting from in the near future; alternatives such as natural gas turbines, fuel cells, and Small Modular Reactors (SMRs). So, in terms of power availability for data centers, the future's looking bright.

Efficiency through collaboration

Our discussion then turned to the theme of relationships…or more specifically, about the evolving relationship between data center operators and local utility companies. Certainly, today we are seeing much closer collaboration between the two industries. And this is great news for all, because a joint approach allows for more effective utility power supply and data center demand, thanks to more transparency around peak demand periods and real-time needs. For more on the mutual benefits of collaboration with local utilities, see my recent piece for DCD magazine.

The prime/backup power equation

Next up, my discussion with Dan addressed the theme of power sources, looking at how backup power complements prime power. To take prime power first, data centers run on multiple redundant power sources, usually from different utility feeds. However, if a data center facility was to add its own onsite prime power source, the most favorable source right now would be natural gas turbines - although this source currently presents some challenges in terms of fuel delivery, cost, and carbon emissions. In the near future we may see fuel cells emerge as a prime power option, although for this to happen there are also challenges to overcome - related to cost, storage, transmission, and carbon emissions. Finally, as I've touched on above, onsite nuclear power through SMRs looks like becoming a reality in the next decade, although it will take time for this power source to get through regulatory approval, depending on the energy-related laws governing the specific countries in question.

And onto backup power. Our reliance on data center backup power is greater than ever, largely as a result of increasing global grid instability, (see my previous blog which accounts for this instability). In the past, data center operators would rely on diesel-powered systems, which although reliable, produce harmful carbon emissions, which poses a challenge, especially given strict regional sustainability reporting directives that have recently come into force. In terms of long-term backup systems that can replace diesel, I believe our best chance is by adopting a distributed approach, by: (1) sourcing cleaner Renewable Diesel, (2) adding Battery Energy Storage Systems, and (3) replacing diesel generators with fuel cells powered by green hydrogen, (when green hydrogen becomes available at scale). These three backup solutions are reliable, can be grid-interactive, and are a much cleaner backup alternative to traditional diesel.

Embracing densification

Before we wrapped up, Dan had one final topic for us to address; that of power density projections, especially in the midst of this AI boom. In simple terms, the massive demand for AI training accelerated by GPUs is upping power densities at an astonishing rate. To put this into numbers, the power densities for AI IT racks is currently up to 70 kW per rack. However, Nvidia's new Blackwell GPU architecture has the capacity to reach up to 120 kW per rack. And believe it or not, Nvidia's planned successor to Blackwell, Rubin is expected to reach a mind-boggling 240 kW per rack! On a related note, Schneider Electric's recent Nvidia collaboration is a great example of how our industry is already working closely together - by developing reference designs that provide data center operators with the guidance to streamline and accelerate deployment of high-density AI clusters.

Finally, thank you DataCenterDynamics for your warm welcome at what was a wonderful DCD Connect 2024. Having this opportunity to interact with 3000+ data center experts is priceless when it comes to industry collaboration and best practice sharing. I look forward to meeting up again in 12 months, to compare notes on the progress our industry's made, in driving even greater power efficiency, resilience and sustainability.

I invite you to watch my DCD>Talks on AI and the changing energy landscape video here: https://www.datacenterdynamics.com/en/videos/dcdtalks-ai-changing-energy-landscape

Related resources:

• AI-Driven Data Centers: Revolutionizing Decarbonization Strategies: White Paper 106
• Discover what AI disruption means for data center design: White Paper 110
• Navigating Liquid Cooling Architectures for Data Centers with AI Workloads: White Paper 133
• Understanding BESS: Battery Energy Storage Systems for Data Centers: White Paper 185
• Small Modular Nuclear Reactors Suitability for Data Centers: White Paper 186
• Find out how Schneider Electric's DCIM software tool helps drive data center energy efficiency

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