Why data centers are building their own power

Electricity used to be taken for granted. Now it is central to data center development. Craig Enochs explains why so many developers are building their own power, and what that commitment involves.

Today’s projects can need large amounts of electricity, and the volume of new generation and load seeking interconnection has created a long queue for regulators. Even a three- to five-year delay can make a project unviable, so developers are building their own power for the interim and connecting it to the grid later.

That means taking on much more than engineering, procurement, and construction work: air and water permits, land use and easements, fuel supply, and emissions. Most data center companies are not in the business of running power plants, so they typically partner with someone who is. There is no universal answer to sizing: behind-the-meter generation is expensive to overbuild, but it must scale if the data center grows faster than an interconnection agreement can be put in place.