Dual Feed: Vantage Data Centers, VoltaGrid, Equinix, Bloom Energy, Constellation, Calpine

"Dual Feed," an industry term reflecting data centers with more than one electrical feed and/or substation, is the title of this periodic feature at Data Center Frontier. Here we round up news and insights from the twin spheres of utility and on-site / behind the meter data center power supply and generation developments, alongside issues related to data center renewable energy generation sources, methods, providers, and power purchase agreements (PPAs).

Vantage Data Centers and VoltaGrid Partner to Deploy Over 1 GW of Power Generation, Addressing Power Constraints and Accelerating Hyperscale Expansion

On February 11, in a significant move to overcome power limitations in North America, Vantage Data Centers announced a strategic partnership with VoltaGrid to deploy over one gigawatt (GW) of prime power generation capacity. 

The move is designed to accelerate data center development in power-constrained markets across the country. The collaboration aims to set a new industry benchmark for speed, reliability, and sustainability, ensuring that hyperscale and cloud providers can expand without delays caused by grid limitations.

Dana Adams, President of North American operations at Vantage Data Centers, emphasized the urgency of this initiative:

“Cloud and AI technologies require the rapid development of additional data center infrastructure. The sector faces a major hurdle in securing timely power at scale. 

Partnering with VoltaGrid is an ideal solution to deploy capacity in constrained power markets to meet customer demand for new and innovative technologies that will bring social and economic benefits. 

With innovative technologies and a shared commitment to sustainability, Vantage and VoltaGrid are well positioned to support our customers while setting new standards for energy deployment in the industry.”

A New Model for Energy Deployment in Data Centers

The data center industry is undergoing a transformative shift, driven by the escalating demands of cloud computing, artificial intelligence (AI), and digital services. Following along in wake of the AI tsunami, a flood of recent strategic partnerships and acquisitions underscore a collective move towards innovative, sustainable, and resilient energy solutions.

Such developments not only address immediate power constraints but also set the stage for a more robust and environmentally-conscious digital infrastructure. By integrating VoltaGrid's advanced natural gas microgrid technology, this partnership offers a scalable and flexible power solution for data centers. 

Grid capacity constraints are becoming a defining challenge for hyperscale and AI-driven data center developments. The Vantage-VoltaGrid partnership leverages VoltaGrid’s advanced natural gas microgrid technology to deliver scalable and flexible power solutions where traditional utility power may not be immediately available. 

This approach not only promises rapid deployment—potentially within months—but also emphasizes sustainability, with technologies capable of reducing emissions by up to 98%, claim the partners. 

Moreover, the system is designed to incorporate 100% hydrogen-based or renewable natural gas when available, aligning with net-zero objectives. By integrating both portable and stationary power systems, the two companies aim to provide a resilient and environmentally responsible approach to data center energy needs. 

Key advantages of the Vantage DC-VoltaGrid partnership as cited by the companies include:   

• Speed to Market: VoltaGrid’s power solutions are engineered for rapid deployment, with installations possible within months, rather than the years typically required for new grid infrastructure.
• Scalability for Hyperscale Needs: With the ability to deliver over 1 GW of power, this partnership ensures that data center energy infrastructure can grow in tandem with the expanding digital economy.
• Sustainability Focus: VoltaGrid’s microgrids utilize advanced natural gas technology with up to a 98% reduction in emissions from criteria air pollutants. The system is also designed to incorporate 100% hydrogen-based or renewable natural gas when available, with carbon offset capabilities to support net-zero goals.
• Streamlined Permitting: Emissions control technologies enable faster permitting approvals, helping hyperscalers avoid long regulatory delays.

“VoltaGrid’s expertise in deploying scalable and reliable power systems aligns perfectly with Vantage’s mission to deliver world-class data center infrastructure,” said Nathan Ough, President and CEO of VoltaGrid. “Our ability to rapidly deploy scalable energy solutions will redefine industry expectations and provide AI hyperscalers with the means and confidence to continue to scale their operations.”

Enabling the Future of AI and Cloud Growth

As the data center industry faces unprecedented demand driven by artificial intelligence, cloud computing, and digital services, power availability is emerging as a critical constraint. By deploying innovative microgrid solutions at scale, Vantage and VoltaGrid are thus positioning themselves at the forefront of solving one of the industry’s biggest challenges.

Meanwhile, Vantage continues its global expansion, operating across five continents with a focus on high-efficiency, sustainable data center design. With this partnership, the company reinforces its ability to support hyperscale growth, even in traditionally power-challenged markets. 

As the industry moves forward, such solutions and partnerships will play a pivotal role in ensuring that data center infrastructure can sustainably keep pace with the evolving needs of AI, cloud, and enterprise computing.

See Also:  Vantage Data Centers Augments New Albany, Ohio's Data Center Boom

Scaling Onsite Power for Digital Infrastructure Growth: Bloom Energy Expands Data Center Power Agreement with Equinix, Surpassing 100 MW

On February 20 it was announced that Bloom Energy has expanded its long-standing partnership with Equinix, pushing its fuel cell deployment beyond 100 megawatts (MW) to support the growing power needs of Equinix’s International Business Exchange (IBX) data centers across the United States.

The move highlights a decade of collaboration between the two companies, aimed at delivering reliable and cleaner onsite power solutions.

With approximately 75 MW already operational and another 30 MW under construction, this landmark agreement marks a significant leap from the partnership’s origins—a 1 MW pilot deployment at a single Silicon Valley IBX data center in 2015.

As AI adoption accelerates and data center demand surges, the scalability and efficiency of Bloom’s fuel cell technology are proving essential in supporting large-scale digital infrastructure.

Bloom Energy's expanded collaboration with Equinix marks a milestone in onsite power generation for data centers. Surpassing 100 megawatts (MW) of fuel cell deployments, the expanded partnership underscores a decade-long commitment to reliable and cleaner energy solutions.

“Our fuel cells are supplementing grid power at 19 Equinix IBX data centers in six states with cleaner and reliable onsite power,” said Aman Joshi, Chief Commercial Officer at Bloom Energy.

Joshi added, “With AI adoption accelerating and data center demand exploding, our ongoing relationship underscores the scalability and reliability of our fuel cell technology to support large and complex projects. We are delighted to work with Equinix to help drive the industry forward.”

Advancing Sustainability and Resilience in Data Centers While Powering the Future of Digital Infrastructure

As data centers contend with increasing power demand and grid limitations, the Bloom-Equinix partnership underscores the importance of innovative, on-site energy solutions. Bloom’s solid oxide fuel cells provide Equinix with a sustainable alternative to conventional grid power, delivering cleaner electricity with virtually zero air pollution, no water usage, and the flexibility to navigate capacity constraints.

Bloom Energy’s fuel cell systems enable Equinix to generate power on-site with higher reliability and lower environmental impact than traditional energy sources. As AI workloads and cloud computing accelerate power consumption, the collaboration demonstrates how distributed energy solutions can bolster resilience while aligning with sustainability objectives.

With data centers playing an increasingly vital role in the global digital economy, scalable and efficient power solutions like Bloom’s fuel cells will be essential in meeting the industry’s evolving energy demands. As noted by the company, Fortune 100 companies globally turn to Bloom as a trusted partner to deliver lower carbon electricity today and a net-zero future. The company says it takes a mandate to empower businesses and communities to responsibly take charge of their power needs. 

David Rinard, Vice President of Energy Operations at Equinix, emphasized the strategic importance of the collaboration, which highlights the role of innovative energy solutions in meeting the burgeoning power needs of the digital economy.

“As the demand for power increases, we anticipate innovation in alternative energy technologies increasingly playing a key role in the availability of power going forward,” said Rinard. “Bloom’s fuel cells allow us to generate cleaner and reliable electricity onsite at our data centers in a cost-effective way. We’re proud to have continued to expand our relationship with Bloom over the last decade and helped lead the industry forward.”

The deployment of Bloom's solid oxide fuel cell platform for across 19 Equinix IBX data centers in six states addresses critical challenges including:

• Reliability: Onsite power generation reduces dependence on the grid, enhancing operational resilience.
• Sustainability: The technology delivers cleaner electricity with minimal air pollution and no water usage, contributing to environmental goals.
• Scalability: The modular nature of fuel cells allows for incremental capacity additions, aligning with evolving data center requirements.

Related:  Bloom Energy and Fuel Cells in the Data Center - Evolution or Revolution?

Nuclear Giant Constellation Acquires Natural Gas Stalwart Calpine, Creating the Largest U.S. Clean Energy Provider

On January 10, 2025, Constellation (Nasdaq: CEG) announced a definitive agreement to acquire Calpine Corp. in a $16.4 billion cash-and-stock transaction, including the assumption of $12.7 billion in net debt. 

A landmark transaction, the acquisition positions Constellation as the largest clean energy provider in the United States, significantly enhancing its generation portfolio with natural gas and geothermal assets.

With an expanded coast-to-coast footprint, the combined company will provide 60 GW of power, reinforcing grid reliability and offering businesses and consumers a broader array of sustainability solutions.

The move strengthens Constellation’s competitive retail electricity presence, serving 2.5 million customers across key U.S. markets, including Texas, California, and the Northeast.

"This acquisition will help us better serve our customers across America, from families to businesses and utilities," said Joe Dominguez, president and CEO of Constellation. "By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, low-carbon natural gas and geothermal generation, we can deliver the most comprehensive clean energy portfolio in the industry."

A Strategic Move for the Data Center Industry

With skyrocketing demand for AI and cloud services, data centers are under increasing pressure to secure reliable, low-carbon energy sources. The Constellation-Calpine combination is particularly relevant for large-scale hyperscale operators and colocation providers seeking flexible energy solutions. 

For the data center industry, this consolidation offers several advantages:

• Diverse Energy Mix: The integration of nuclear, geothermal, and low-emission natural gas provides data centers with flexible and reliable energy options.
• Grid Stability: Calpine's extensive natural gas fleet enhances grid reliability, crucial for data centers operating in high-demand regions.
• Sustainability Initiatives: The combined entity is well-positioned to invest in clean energy infrastructure, including battery storage and carbon sequestration, aligning with the sustainability goals of hyperscale operators.

The acquisition strengthens Constellation’s ability to meet the power needs of data centers by integrating nuclear, geothermal, and low-emission natural gas into its energy offerings, providing greater stability in regions experiencing power constraints.

Calpine’s extensive natural gas fleet will continue to play a key role in grid stability, especially as more data centers come online in high-demand markets like Texas and Virginia. 

The acquisition also enables Constellation to accelerate investments in clean energy infrastructure, including nuclear uprates, battery storage, and carbon sequestration technologies.

Expanding Constellation’s Market Reach

Further, the acquisition expands Constellation’s role as a retail and commercial energy provider, giving customers greater access to customized energy products. 

"Together, we will be better positioned to accelerate investment in zero-emission nuclear and battery storage solutions that power the economy while prioritizing sustainability," said Andrew Novotny, President and CEO of Calpine. "This is a win for businesses and communities that rely on clean, reliable energy."

Tyler Reeder, President and Managing Partner of Energy Capital Partners (ECP), which has owned Calpine since 2018, emphasized the companies' strategic alignment.

"Since acquiring Calpine, we have focused on unlocking value and driving future growth avenues. This transaction reflects the strong market position we have built," Reeder said.

Financial and Regulatory Path Forward

The acquisition is expected to be immediately accretive, with Constellation projecting more than $2 billion in annual free cash flow and EPS accretion of at least $2 per share in future years. The deal is subject to regulatory approvals from the Federal Energy Regulatory Commission, the Public Utility Commission of Texas, and other agencies, with closing anticipated within 12 months.

Lazard and J.P. Morgan Securities LLC are serving as financial advisors to Constellation, with Kirkland & Ellis providing legal counsel. Calpine’s financial advisors include Evercore, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and Barclays US, with Latham & Watkins and White & Case serving as legal counsel.

Upon closing, Constellation will maintain its headquarters in Baltimore while continuing a significant presence in Houston, where Calpine is currently based.

Focus on Strategic PPAs to Meet Escalating Data Center Energy Demands

Finally, the data center industry's extremely rapid growth since the AI inflection point keeps prompting significant power purchase agreements (PPAs) to secure sustainable and reliable energy sources.

Big data center PPAs of recent note include:

• NRG Energy's Natural Gas Plants: Partnering with GE Vernova and Kiewit Corp., NRG Energy plans to construct four natural gas-fired power plants totaling approximately 5 GW. These facilities aim to supply electricity to data centers in Texas and other regions, with the first 1.2 GW plant expected operational by 2029.
• RWE and Meta's Solar Projects: RWE has signed two long-term PPAs with Meta for solar farms under construction in Illinois and Louisiana, with a combined capacity of 374 MW. These projects, expected online by late 2025, will provide clean electricity to support Meta's data centers and operations.
• Google's Nuclear Small Modular Reactors (SMRs) Initiative: In October 2024, Google signed an agreement with Kairos Power to develop 500 megawatts of small modular reactors near its data centers, aiming for operational status by 2030. This initiative reflects Google's commitment to securing reliable, clean energy for its expanding data center infrastructure.

These agreements are just a sampling of such recent deals, which underscore the data center industry's - and particularly the hyperscalers’ - increasingly proactive approach to securing sustainable and reliable energy sources to meet wildly increasing operational demands in the age of AI.

At DCF, we not only talk the industry talk, we walk the industry walk. In that spirit, DCF Staff members may occasionally use AI tools to assist with content. Portions of this article were created with help from Open AI's GPT-4.

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