INNIO Group’s Jenbacher Engine Technology, Delivering the Power Needs of North America’s Data Centers
Data Centers have evolved since the 1940s, from the room-sized Electronic Numerical Integrator and Computer to today's sprawling complexes. Current forecasts indicate that more than USD 260 billion will be invested in data center construction worldwide in 2024. From 2023 to 2030, the segment is expected to grow at a CAGR of 10.9%. As data centers meet the growing demand for cloud services and AI technologies, the industry must adopt power solutions that reduce carbon footprints and energy consumption.
Data Centers…Critical Infrastructure for the Digital Economy
Today the world is witnessing the unprecedented growth of data centers that is being driven by the exponential creation and usage of data that is at the heart of technological advancements and societal shifts. The explosion of data creation – fueled by the proliferation of high-performance computing for artificial intelligence, internet-connected devices and increasing digitization of information – requires more robust and expansive data storage solutions. Today, data centers’ support of cloud computing has become ubiquitous especially for businesses and individuals relying on remote servers for data storage and processing.
Data centers’ reliability is crucial for business continuity, as they house vital IT operations that require robust infrastructure, including redundant power supplies, data communication connections, and environmental controls. Any disruption to data centers can have significant impacts on security, national economic security, public health, and safety. For these reasons, in 2013 the U.S. Department of Homeland Security designated data centers as critical infrastructure.
Power Challenge
The growth of the data center market requires substantial energy that is primarily due to the power and cooling needs of an extensive IT infrastructure. Data centers house numerous servers, storage systems, and networking equipment that process and store vast amounts of data. These components not only consume energy to operate but also generate heat, requiring advanced cooling systems to maintain optimal temperatures. Concurrently, data centers require reliability and redundancy in the form of backup systems that add to the overall energy usage.
In the U.S., home to the largest share of the data center market, data center builders constantly struggle to secure the power required to meet operational needs from an aging electricity infrastructure. With an electric grid built in the 1960s and 1970s and a transmission line system more than 25 years old, the U.S. power system is approaching the end of the expected 50- to 80-year life. Even with power system improvements the aging power infrastructure currently is struggling to meet traditional electricity demand, and even more so for the ever-growing needs of the data center industry. In addition to aging power system headwinds, data center builders are competing for electricity in a market where demand for electricity is projected to grow by a total of 4.7% over the next five years. Considering the amount of power required for operations, the growth of data centers is positioned to place unprecedented demand on the U.S. grid. In Texas, for example, the grid is already strained with the additional load from data centers, causing major concern among experts.
The reality is that the rapid growth in data center construction is outpacing the grid’s current capacity. This highlights the grid’s limitations, particularly in terms of low transfer capability between regions, posing a risk to reliability if load growth outstrips new generation deployment. This points to data centers’ growth being at severe risk of stalling because of grid availability and reliability compounded by policy and permitting requirements. These challenges are driving data center builders to turn toward more creative and efficient solutions, including greenfield construction and on-site power generation, to ensure that the power needs of the digital economy can be met without compromising grid stability and reliability.
The Power of Gas
As the data center industry undergoes its massive growth, the monumental task facing operators is not only the requirement to secure power needs for data center facilities, but there exists the need to navigate the transition to Net Zero. To achieve Net Zero, industry must transition from fossil fuels to renewable energy sources.
As highlighted previously, data centers require the electric grid to deliver both available and reliable power production to meet current and future energy needs. With renewable energy sources integration into the grid, these sources introduce volatility in the grid causing an inability to meet power production requirements for 24/7/365 rapid and safe day-to-day operations. This fact necessitates the use of an energy source bridge that supports transitioning the current fossil fuel-based infrastructure to a fully renewable sources-fueled infrastructure to help achieve Net Zero. This energy source bridge must foster the reduction of greenhouse gas emissions, meet growing demand for power…and be plentiful. The most suitable fuel source solution that meets these unique requirements is natural gas.
Using natural gas as an energy source can bring down emissions significantly in many ways. One example is using Jenbacher technology that replaces conventional electric-driven cooling compressors currently used in data centers with combined onsite power generation. This technology uses the generated waste heat with individual solutions based on absorption chillers, heat pumps and other waste heat recovery solutions. When fueled with highly reliable pipeline gas, Jenbacher combined cooling and heat power (CCHP) systems can cut data centers’ CO2 footprints by up to 50%—depending on the energy mix—while saving more than 20% of the primary energy used. To make data center onsite energy systems sustainable, integrated waste heat recovery is needed to enable cooling, which usually accounts for up to 40% of a data center’s energy requirements. With the abundance of natural gas, Jenbacher’s advanced engine technology in North America provides excellent containerized CCHP solutions for the data center industry operating environment. And with the industry embracing green field expansions to meet its needs, data center builders can establish operations with fewer power generation challenges. Green field expansions require decentralized power solutions where and when transmission lines are limited or unavailable. Decentralized power provides a myriad of advantages for data center operators that include ease of expansion due to grid independence, participation in curtailable tariffs, and utilization of heat or cold produced in trigeneration application. When operating in parallel with the grid, decentralized power provides balancing and ancillary services to the grid, accommodates intermittent renewable generation, and the ability to sell electricity when retail or wholesale prices are high.
Revving Up Gas-fired Power Plants
Gas-fired power plants are the backbone of the energy transition, providing reliable electricity for data centers until the grid is built out or its reliability improves. Reliable low emission gas generators can supply continuous power 24/7/365 a year. When the grid is available to meet data center power needs, gas generators previously used for continuous power supply can transition to backup solutions.
Notably, when operating a hybrid setup involving both backup and prime power supply could be an attractive option for data centers. With a hybrid setup, gas generators can act not only as a backup power source but also can supply power continuously as a primary energy source when the grid cannot supply enough power. Gas generators also can be used for grid curtailing during peak periods when the data center is disconnected from the grid and power is supplied internally.
Delivering Emergency Backup with Net Zero Capability…Today
NorthC Datacenters (NorthC), a leader in the Dutch data center segment, is underway with a groundbreaking journey towards enhanced sustainability. The company’s Eindhoven facility has pioneered the European data center landscape by installing a Jenbacher-enabled dual gas power plant able to run on 100% natural gas, 100% hydrogen and any mixture—a first for the continent. The site can do this as soon as hydrogen is readily available.
At NorthC’s Eindhoven data center facility, they are using six INNIO Group’s Jenbacher “Ready for H2” engines. The Jenbacher engines are at the heart of the power plant that provides emergency backup power in cases where electricity grid outages occur. The multi-gas engines generate a total power output of six megawatts and operate as a containerized package. The Eindhoven data center not only includes the multi-gas emergency backup power solution, but it also plans an on-site hydrogen storage solution built from a greenfield project.
The multi-fuel operation of the power plant can provide additional flexibility and security to NorthC. In case of an electricity grid outage the engines will operate with the onsite stored hydrogen. For longer duration grid outages, NorthC has the option to switch to natural gas as an energy source during operation of the engines. Also, NorthC uses a cloud-based digital platform solution provided by INNIO Group allowing for secure, real-time monitoring of the emergency backup solution. The project has received notoriety because of its support of the Netherlands’ strategy to achieve carbon neutrality by 2050.
NorthC maintains a strategy to be fully carbon neutral by 2030. This will be accomplished through four sustainability pillars: 100% green energy, modular construction, making efficient use of residual heat, and green hydrogen. The Eindhoven data center will be powered with solar and wind energy from the grid, avoiding stranded assets.
Using Jenbacher solutions is well-suited to provide a reliable power supply, reduce the carbon footprint of data centers, and offers the potential for additional savings and revenue. Jenbacher gas generators are built on proven and established engine technology that enables INNIO Group’s customers to decarbonize and flexibly move to 100% hydrogen operation over time without having to invest in another asset to meet Net Zero requirements later. Investing in Jenbacher gas generators helps to prevent data center operators from having stranded assets on the books, which could likely be the case with diesel generators.
Reliability Electricity Beyond the Grid
North American data center operators must meet their power generation requirements while aligning with Net Zero goals. Considering that the power grid’s capacity may not be sufficient, data center operators are innovating to improve energy, water efficiency, and land use, with the aim of achieving sustainable development. Many data centers are looking for alternative power supply solutions beyond the grid to include exploring the use of power plants fueled by natural gas and renewable energy sources such as hydrogen. Implementing a shift toward natural gas and renewable-powered emergency and backup power for data centers is a step that can reduce emissions from the across the industry today. INNIO Group’s Jenbacher engine power plants can help solve the problem of providing reliable electricity for the data center industry until the grid is developed or is more reliable. And, with renewable fuels such as hydrogen, Jenbacher solutions can help the data center industry meet electricity needs today while positioning the industry for Net Zero operations for tomorrow.