Data Center Demands and Clean Energy Production Require Smart Infrastructure Investments

The recent Department of Energy’s (DOE) AI for Energy Report projects that the U.S. must invest trillions of dollars in energy infrastructure to accommodate increasing power demands for emerging technologies and meet clean energy goals.

The report explains that increased energy demands tax the nation’s “old and overburdened” energy grid with outages costing U.S. companies an annual average of $150B. The agency identified areas in which integrating next-generation technologies such as Artificial Intelligence (AI) could be immediately beneficial for grid planning, permitting and siting, operations and reliability, and resilience.

However, the correlating data processing requirements also increase energy demands. Therefore, the Department of Commerce’s National Telecommunications and Information Administration (NTIA) issued a Request for Comments (RFC) on Bolstering Data Center Growth, Resilience and Security to explore how federal policies can support the increase in U.S. data centers and meet the expected surge in energy requirements. Comments are due by November 4, 2024.

The RFC explains that the U.S. has more than 5,000 data centers with an anticipated 9% annual growth rate through 2030. A joint Federal Energy Management Program (FEMP) and National Renewable Energy Laboratory (NREL) Best Practices for Energy-Efficient Data Center Design report stipulates that information technology (IT) equipment loads can account for over half of a typical data center’s entire  energy consumption. Energy required for the cooling systems necessary to offset the heat generated by the equipment only exacerbates the problem. Furthermore, these centers emit greenhouse gas (GHG) emissions that are expected to increase between 20-40% annually, according to the International Energy Agency Tracking Clean Energy Progress 2023.

Moreover, supply chain issues exist regarding access to trusted equipment, the availability of a specialized workforce and land availability as corporations move away from leased-space data centers in large cities to individual data mega-campuses in rural areas where electricity and real estate are cheaper. Phil Konblence, Founder and Chief Operations Office of New York Internet explains that while this “exodus” may provide corporate cost-efficiencies it increases demands on the smaller local energy grids and brings inherent risks regarding back-up systems, cybersecurity, communications and adequate staffing needs.

Therefore, the NTIA request also includes feedback on 

• Market considerations data centers deem critical when seeking to modernize or expand.
• Potential positive and negative impacts of data center modernization or investment on society.
• Requirements data centers hosting AI models should implement to ensure adequate data security practices.

Addressing these concerns requires more efficient data center design.

FEMP explains that previous attempts for more cost-efficient and less consumptive centers were often only mere revamps of previous designs that resulted in little more than upgraded versions of standard office spaces. Therefore, the Best Practices Guide explores the incorporation of AI and machine learning to address energy demands while reducing greenhouse gas (GHG) emissions. Focusing on Information Technology, Environmental Conditions, Air Management, Cooling Systems and Electrical Systems, the guide proposes steps for meeting evolving energy demands while designing data-sustainable centers.

Implementation requires higher-efficiency IT systems, hardware consolidation and virtualization along with cloud and colocation for computing and storage needs. This also requires energy-efficient processors, fans and power supplies, consolidating data storage devices and power supplies, implementing virtualization methods and integrating efficient algorithms. And finally, the systems must ensure compliance with federal cybersecurity and AI standards.

Funding for these investments will likely come through the Bipartisan Infrastructure Law and Infrastructure Investment and Jobs Act. However, IT-related investments typically remain embedded within the large laboratory maintenance and operations contracts or mission-specific programs. Nevertheless, if the Department “builds it” the opportunities will come.