The Benefits of Implementing Substations for Data Centers

The modern world demands massive amounts of data. Artificial intelligence, machine learning, and cloud storage rely on advanced computing power and uninterrupted access to data – and generate even more. To keep up with these trends, substations are becoming critical aspects of data center grid connection. However, the grid interconnection waitlist can be long, and data centers are being constructed faster than the supporting utility power infrastructure can be developed. If regional regulations and utility allow, one solution for data center owners to consider is building and operating their own electrical substations.

To provide context, let's cover some fundamentals before exploring the benefits for designing and building a data center substation.

• What is a substation? Substations are stable, long-standing pieces of infrastructure that serve as the hub of the electrical grid, connecting all of the different spokes of the grid to safely and efficiently bring electricity from power plants to other facilities. Substations convert power from high voltage to low voltage to efficiently support bringing the large amount of power to the many different components and equipment within the data center.
• Why do data centers need substations? As data center campuses grow in size and complexity, these facilities have high electricity demands that require a reliable and efficient power supply for their operations. Owning and operating a substation can be an effective way to accelerate development schedules and control costs when the interconnecting utility has resource or capital constraints. It also allows for custom configurations of additional critical infrastructure for campus-scale data center projects, providing operational control and flexibility.

• Which obstacles are standing in the way? As the industry works to keep up with the load growth due to digitalization and other advancements in technology, speeding up the project schedule is essential. Data center owners and operators are seeking large improvements within the shortest time, while the power industry is simultaneously managing an evolving workforce and addressing aging infrastructure. Collaboration between data centers and utilities is crucial. Cooperation is key to balancing data centers’ need for a reliable and sufficient power supply while allowing utilities to maintain the power grid’s stability and safety.

With this foundational information in mind, data center owners can take the following critical steps towards designing, building and operating a resilient substation:

1. Make Strategic Design Decisions

Building a substation requires sophisticated program management expertise to strategically coordinate all phases of the infrastructure lifecycle – through conceptual design, engineering, procurement, construction, testing, commissioning and operations and maintenance (O&M). Making proactive and strategic decisions during the design phase can lead to significant time and cost savings in the long run, ensuring smooth and efficient operations of the data center. Major design considerations may include:

• Power availability and utility interconnection agreements
• Site due diligence and permitting
• Equipment ratings, specifications and lead times (some high voltage equipment can take one to three years to procure)
• Technology selection especially air-insulated substations vs. gas-insulated substations (GIS) (GIS can be up to three times the cost but take up a third the space)
• Substation configuration, including weighing the pros and cons of radial, MTM, Ring, BAAH, DBDB
• Building management system integrations for monitoring, operations and maintenance
• Operational flexibility and future expansions
• Other critical infrastructure, including water and telecommunications
• Resiliency strategies, such as climate modeling and storm readiness
• Additional revenue opportunities, such as selling energy back to the utility
• Personnel training to safely and efficiently operate the substation
• Project sequencing tied to commercial load and operational needs

The factors that have the most direct impact on the schedule include utility interconnection agreements, equipment procurement timelines, permits, and site development. While value engineering opportunities are certainly on the table, keep in mind that decreasing the budget requires tradeoffs in the schedule and/or project scope.

2. Choose Experienced Partners

The success of a data center substation relies heavily on selecting the right engineering, procurement, and construction (EPC) partner. When evaluating potential EPC firms, make sure to take the following into account:

• Safety culture
• Relevant qualifications and proven performance on projects of this size and scale (especially for your particular location)
• Industry reputation and connections (such as permit expediters)
• In-house subject matter expertise (including commissioning, construction, environmental, geotechnical, seismic, etc.)
• High voltage-specific experience
• Deep understanding of procurement and supply chain
• Execution plan development experience specific to your project

While data center owners may have worked with a reliable EPC partner in the past, it is important to evaluate their capability to handle large and complex substation projects and manage potential risks effectively. There’s no need to re-invent the wheel; choose a partner with a proven track record of successfully addressing the complex nuances of large substation and data center projects.

Safety should be the topmost priority on all construction projects, especially when dealing with high-voltage equipment. Prioritizing a comprehensive safety program is critical to avoid any potential hazards. It is crucial to avoid EPC firms with a poor track record in safety, as it is a critical factor to ensure the well-being of the workers and the success of the project.

While safety, reliability and resiliency are the main priorities here, sustainability considerations may also come into play based on the data center owner’s goals and regulatory requirements. An EPC partner with a well-established sustainability program can be a significant advantage.

3. Develop a Robust O&M Program

The work isn’t over once the substation is built. A robust O&M program is essential for data center owners to protect their investments throughout the infrastructure lifecycle. Although “resiliency” and “reliability” are often used as buzzwords, they can be addressed in an actionable and tangible way in this context.

• Resiliency is a data center’s ability to recover from power outages. To be truly resilient, a data center O&M strategy must include a monitoring plan (to watch, understand and respond), a maintenance plan (to proactively prevent unplanned outages), and an operational plan (to determine who will respond, when, and how they will restore power).
• A reliable data center has consistent power, delivered as intended. Planned maintenance outages are strategically managed to avoid interrupting the flow of data. Redundant infrastructure assets (such as transmission lines, poles, control cable routes) are established to ensure no single points of failure.

Resiliency and reliability can only be ensured with an intentional O&M program, and trained personnel who know how to effectively carry it out throughout the infrastructure’s lifespan.