Podcast: Hydrogen Data Center Upsides with Yuval Bachar, Founder and CEO, EdgeCloudLink (ECL)

In today's episode of the Data Center Frontier Show podcast, DCF's editors speak with hyperscale data center industry veteran Yuval Bachar, founder and CEO of hydrogen data center operator EdgeCloudLink (ECL).

Bachar has held data center leadership positions with Microsoft Azure, LinkedIn, Facebook, Cisco, and Juniper Networks. He was a founder of the Open19 project, which creates open hardware designs for enterprise users, and holds eight U.S. patents in data center, networking and system design.

During the interview, we asked Bachar about ECL's flagship hydrogen data center projects near Houston, TX and Mountain View, CA. He went on to outline ECL's future plans for expansion and sustainability in response to growing AI demands. Within the context of Bachar's forecast outlook for hydrogen data centers, DCF's editors also inquired about natural gas as a transitional power source and the challenges of natural gas infrastructure.

Within the context of Bachar's forecast outlook for hydrogen data centers, DCF's editors also inquired about natural gas as a transitional power source and the challenges of natural gas infrastructure.

With the AI boom is driving heavy interest in the upsides of hydrogen data centers, Bachar took time to emphasize his company's ongoing commitments to sustainable data centers, as reflected by the industry at large.

Our hydrogen production strategy discussion also touched on hyperscalers' energy solution needs, before circling back around to sustainability in data center operations.

Phased Development

Bachar said that ECL is expanding its hydrogen data center business with a focus on Texas, aiming for 100 megawatts in the first phase of campus development there and additional phases every six months. The company plans to complete four sites in the next four to five years, contingent on hydrogen availability and supply chain capabilities.

He emphasized that the urgency for data centers to meet AI demand is critical, citing estimates of the industry needing 50 to 100 gigawatts of power in the next five years, while highlighting the importance of rapid deployment and sustainable practices. He further noted that ECL is positioned as a significant off-taker for hydrogen, influencing suppliers to invest in cleaner hydrogen production facilities.

Bachar underlined his company's sustainability bona fides by stating, "We can deliver data centers which are fully sustainable right now." He noted that ECL aims to use a blend of gray and blue hydrogen initially in its data centers, transitioning to green hydrogen as production increases.

Here's timeline of the podcast's discussion highlights:

Introduction to ECL and Hydrogen Projects

Bachar discusses the ECL hydrogen data center projects, noting Mountain View's site features 1,600 GPUs and off-grid hydrogen solutions. (1:37)
ECL's expansion plans to Texas are outlined. Three hydrogen pipelines will ensure redundancy and cost-effective power delivery. (2:58)
The first phase of the campus in Texas aims for 100 megawatts. Delivery is expected in the second half of 2025. (4:05)

Hydrogen Data Center Outlook

Strategic plans for hydrogen data centers are discussed. Four sites are targeted for completion in four to five years. Hydrogen availability and supply chain challenges are highlighted. (4:39)
Government investment in hydrogen distribution is questioned by DCF, who asks whether infrastructure for hydrogen distribution remains insufficient despite attention from the Inflation Reduction Act. (5:50)

Natural Gas as a Transitional Power Source

Natural gas is discussed as a power option. Concerns about emissions from natural gas are raised. (7:34)
The complexity of transitioning from natural gas to hydrogen is highlighted. A long-term reliance on natural gas for data centers is predicted. (9:37)

Challenges of Natural Gas Infrastructure

Concerns regarding natural gas pipeline capacity are raised. The impact of community pushback on infrastructure development is highlighted. (11:31)
The need for behind-the-meter solutions for data centers is discussed. The urgency of addressing power demands for AI deployment is emphasized. (13:10)

AI Boom Drives Interest in Hydrogen Data Centers

The correlation between AI interest and hydrogen data centers is explored. The demand for hydrogen data centers is linked to the AI boom. (15:07)
The need for scalable solutions in AI deployments is emphasized. The availability of hydrogen for energy generation is highlighted as a key factor. (16:15)
The sustainability of data centers is stressed amidst rapid demand. The importance of building data centers correctly for long-term use is discussed. (17:45)

Commitment to Sustainable Data Centers

The ECL data center design is characterized as 100% green. A commitment to clean hydrogen sources is emphasized. (18:35)
The importance of sustainable practices in data centers is highlighted. Bachar recounts the various types of hydrogen by "color" and their implications. (19:24)

Hydrogen Production Strategy Discussion

The optimal blend of gray and blue hydrogen is described by Bachar, who says this combination is better in terms of carbon footprint than any grid in the United States. (20:43)
The need for more green hydrogen production is emphasized. Bachar says current production levels are insufficient for stationary applications. (21:13)
The role of ECL as significant off-taker for hydrogen production is described. Bachar says this relationship is expected to influence future investments in cleaner hydrogen generation. (22:55)

Hyperscalers' Energy Solution Needs

Bachar says hyperscalers are operating "in starvation mode." They are growing very fast and need immediate energy solutions. (25:44)
As nuclear energy contracts have long delivery times, hydrogen is being considered as a sustainable alternative. (26:00)
Bachar says there is significant interest from hyperscalers in hydrogen technology, and that collaboration is planned to leverage this technology in data centers. (26:44)

Sustainability in Data Center Operations

Discussion circles back around to the importance of sustainability. Concerns about neglecting the sustainability mindset in data centers are expressed. (28:12)
Positive outcomes of hydrogen data center water usage and production are shared. (29:48)

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