Executive Roundtable: Probing Data Center Power Infrastructure and Energy Resilience in 2025

Danielle Rossi, Trane: From the thermal management perspective, aside from product and system efficiency, there are limited ways to address power limitations. 

However, we have recently seen increasing requests for thermal storage to assist with peak shaving power. This can be a useful option, particularly in areas where there is a significant difference in day/night cost per kWh. 

By utilizing chillers to create ice overnight and using that ice for cooling during the day, you can adjust your run hours to limit usage during high-cost power periods.

John Pasta, JLL:  Industry leaders are tackling escalating power constraints with a multi-faceted approach to ensure both reliability and sustainability.

To safeguard operations against grid instability, they are investing heavily in robust backup systems, such as microgrids and high-capacity generators, which can seamlessly take over during outages.

Beyond traditional backups, there’s a noticeable interest in alternative energy sources to meet growing immediate demand. These include natural gas, which offers a stable and relatively cleaner transitional fuel, hydrogen fuel cells, which promise zero-emission power generation, and small modular nuclear reactors (SMRs), an emerging technology offering compact, scalable, and long-term energy solutions.

Simultaneously, renewable energy sources like wind and solar are being integrated into power portfolios wherever practical. However, their intermittent nature—solar only generates during the day, and wind depends on weather—necessitates advanced energy storage solutions, such as large-scale lithium-ion batteries to store excess power for use during peak demand.  

For instance, in Texas, utilities like Oncor and grid operator ERCOT are grappling with unprecedented demand surges driven by data centers supporting AI and cloud computing. Here, operators are collaborating with local stakeholders to balance load growth with grid stability, ensuring that power infrastructure keeps pace with the industry’s unrelenting demand.

Michael Lahoud, Stream Data Centers:  To achieve efficiency and reliability, all options are on the table for many industry players. Many see gas as a practical bridge, but nuclear is a long-term play that is being investigated as well.

Ultimately, what’s used largely depends on the customer. The investments being made today in assorted energy methods will help serve the industry in the ~8-10 year range, but looking for sites in markets where grid capacity remains is the logical move right now. Those locations are hard to find, but they can be uncovered with smart due diligence processes. 

Taking a step back, we see new 'data center developers' putting forth purely speculative development plans hoping they can get into the queue with utilities to decrease their own uncertainty. However, that’s also worsening the problem, making it difficult for utilities to get a handle on what’s real and what’s not. This further constrains access to power for everyone. 

Establishing energy security long-term now means learning how we can be a good partner to utilities while creating clarity around when there’s real demand. Resilience and a strong power pipeline will depend as much on our ability to collaborate and create reciprocity within the energy ecosystem as it will on the power generation method itself.

Ryan Baumann, Rehlko: Industry leaders are taking bold steps to secure long-term energy availability by embracing innovative backup power solutions, forming strategic partnerships, and exploring alternative energy sources. To overcome the challenges ahead, collaboration is key—operators, utilities, OEMs, and technology providers must come together, share insights, and create customized solutions that keep energy both reliable and sustainable as the landscape evolves.

One of the most significant strategies is the growing use of alternative energy sources like hydrogen, natural gas, and even nuclear to ensure a steady supply of power. These options provide a more flexible, reliable backup to grid power, especially in markets with fluctuating energy demands or limited infrastructure. Emergency generator systems, when equipped with proper emissions treatment, can also support the grid through peak shaving or interruptible rate programs with utilities.

Hydrogen fuel cells, in particular, are becoming a game-changer for backup power. Offering zero-emission, scalable, and efficient solutions, hydrogen is helping data centers move toward their carbon-neutral goals while addressing energy reliability. When integrated into a microgrid, hydrogen fuel cells create a cohesive energy network that can isolate from the main grid during power outages, ensuring continuous energy security for critical infrastructure like data centers.

Additionally, natural gas Central Utility Plants (CUPs) are emerging as a key bridging power source, helping large data centers in grid-constrained regions maintain operations until permanent utility power is available. Smart energy solutions, including customized paralleling systems, allow emergency assets to be grid-intertied, enabling utilities and communities to share power burdens during peak periods.

By embracing these innovative solutions and fostering collaboration, the industry not only ensures reliable power for today’s data centers but also paves the way for a more sustainable and resilient energy future.

Next:  Cooling Imperatives for Managing High-Density AI Workloads