By the 2030s, data centers may be responsible for nearly 9% of U.S. electricity consumption—effectively doubling today’s demand. The artificial intelligence (AI) impact on data centers is accelerating this growth, as AI-driven workloads require greater processing power and energy. This expansion requires significant energy production and infrastructure to meet both immediate and long-term needs.
Stanley Consultants vice president and Nexus sales manager Chad Daniel recently joined the Engineering Management Institute’s
AEC Engineering and Technology Podcast to discuss this topic. His conversation touched on the rising role of data centers in driving energy innovation. The dialogue also explored key trends and challenges with AI and
renewable energy as they continue to shape the future of power. The episode is titled
Data Centers at the Heart of Energy Innovation, and this blog recaps some of the interesting takeaways from the conversation.
Rising Electricity Demand is Creating Power Delivery Infrastructure Challenges
The rapid evolution of AI is driving unprecedented growth in data centers, placing immense pressure on power delivery systems across the U.S. As the demand for digital infrastructure surges, the challenges lie in both meeting this demand as well as navigating the infrastructure development timelines required to support it.
Surging Demand for Electricity
The data center energy industry is experiencing a significant surge in electricity demand, driven by the rapid advancement and adoption of AI. The Federal Energy Regulatory Commission (FERC) estimates that data center demand will double in this decade, from 17 gigawatts to 35 gigawatts in 2030. This exponential growth presents a formidable challenge, particularly in constructing the necessary power infrastructure.
The Power Delivery Time Gap
It takes somewhere between 12 and 36 months to build a data center that can generate substantial power, but it can take upwards of seven-plus years to build a transmission line that can move a considerable amount of energy from point A to point B. This significant timeline mismatch is causing considerable stress on the industry, necessitating innovative solutions to bridge the gap, and it’s not just with transmission focused projects.
In addition, the regulatory approval process for traditional energy utility companies can be very long, so data center owners are seeking to privately develop their own power generation.
Transition to Renewable and Lower Carbon Energy Sources
As data centers work to meet surging energy demands, they are also addressing the pressing need to reduce their environmental impact. This transition requires balancing immediate power needs with long-term sustainability goals, prompting the adoption of both renewable energy solutions and innovative bridging technologies.
Exploring Renewable and Low-Carbon Solutions for Data Centers
To address increasing energy needs and minimize environmental impact, data center renewable energy solutions are becoming a priority. Data centers are actively exploring and investing in various renewable and lower-carbon energy sources to enhance sustainability. Bridging technologies such as natural gas turbines and hydrogen are becoming more important for meeting immediate needs. Some manufacturers are starting to promote the ability of their gas-burning engines and machines to burn green carbon or green hydrogen in the future.
Supporting the Shift with Engineering and Data Center Infrastructure Expertise
Bridging technologies allow data centers to continue operations while working toward zero-carbon goals. The complexity of these transitions also drives demand for professional services in the architecture, engineering and construction (AEC) industry, including land acquisition, resilience assessments and various engineering disciplines to support resilient and sustainable operations. Client-Focused Approach for AEC Professionals
AI-driven data centers are creating both challenges and opportunities for AEC professionals. Success in this environment depends on maintaining a people-first, solutions-driven approach that keeps client needs at the forefront.
Prioritizing Client Relationships
Stanley Consultants has always had a focus on maintaining strong, client-focused approaches and that is even more important as AI and data centers reshape the energy landscape. A client-centric approach enables our team members to effectively deliver projects and an exceptional client experience. By prioritizing client needs and maintaining a human-centric perspective, we can overcome the challenges of the industry and deliver resilient and reliable solutions.
Guiding the Industry Toward a Sustainable Future
From the significant increase in electricity demand to the exploration of renewable energy sources, the industry is at a critical juncture. Prioritizing data center energy efficiency is essential to balancing growth with reliability. By focusing on our clients' needs and leveraging innovative solutions, our team plays a key role in shaping a sustainable and efficient future for the data center industry.
You can view a recording of the entire podcast here:
Team with Stanley Consultants on Your Next Energy Project
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