Off-grid data centers aren't the panacea that some AI firms hoped
Local backlash and reliability concerns are challenging the vision of an AI boom built quickly using large off-grid data centers.Why it matters: If giant projects stumble, trillions of dollars in AI investment and the industry's plans to rapidly expand data centers could be at risk.The big picture: In an effort to speed AI development, some companies are building data centers powered mainly by onsite generation rather than waiting years to connect to the electric grid.There are 59 data centers with a combined capacity of about 90 gigawatts that plan to build their own power "behind-the-meter" using sources like gas turbines, generators and fuel cells, according to a report from research firm Cleanview.A smaller subset is trying to run large campuses mostly on behind-the-meter power as a way to move more quickly than the local utility and the grid can. Infrastructure risk analysis firm Occam Edge tracks 12 projects where onsite power is the primary serving supply, representing about 10.6 GW of announced capacity.State of play: Recent hiccups are highlighting the challenges that come with bypassing the grid.Earlier this month, New Mexico's top land official rejected a gas pipeline meant to supply onsite fuel cells for Oracle's 2.5 GW "Project Jupiter" data center campus, part of Oracle and OpenAI's Stargate initiative.
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Local backlash and reliability concerns are challenging the vision of an AI boom built quickly using large off-grid data centers.Why it matters: If giant projects stumble, trillions of dollars in AI investment and the industry's plans to rapidly expand data centers could be at risk.The big picture: In an effort to speed AI development, some companies are building data centers powered mainly by onsite generation rather than waiting years to connect to the electric grid.There are 59 data centers with a combined capacity of about 90 gigawatts that plan to build their own power "behind-the-meter" using sources like gas turbines, generators and fuel cells, according to a report from research firm Cleanview.A smaller subset is trying to run large campuses mostly on behind-the-meter power as a way to move more quickly than the local utility and the grid can. Infrastructure risk analysis firm Occam Edge tracks 12 projects where onsite power is the primary serving supply, representing about 10.6 GW of announced capacity.State of play: Recent hiccups are highlighting the challenges that come with bypassing the grid.Earlier this month, New Mexico's top land official rejected a gas pipeline meant to supply onsite fuel cells for Oracle's 2.5 GW "Project Jupiter" data center campus, part of Oracle and OpenAI's Stargate initiative. The regulatory set back could contribute to a years-long delay.A week later, a much smaller off-grid data center in Virginia, saw its onsite gas turbines knocked offline for 24 hours, forcing it to run on dirty backup diesel generators during already bad air quality from the Canadian wildfires. Local residents complained of burning lungs and 60-decibel level noise, and a supervisor called for new laws to regulate generators.Catch up quick: Chief developers of this off-grid approach include OpenAI, and its partners Oracle and Crusoe, which have worked on OpenAI's Stargate campuses.
Read the full report at Axios ↗
Why it matters
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- What's the story?
- Local backlash and reliability concerns are challenging the vision of an AI boom built quickly using large off-grid data centers.Why it matters: If giant projects stumble, trillions of dollars in AI investment and the industry's plans to rapidly expand data centers could be at risk.The big picture: In an effort to speed AI development, some companies are building data centers powered mainly by onsite generation rather than waiting years to connect to the electric grid.There are 59 data centers with a combined capacity of about 90 gigawatts that plan to build their own power "behind-the-meter" using sources like gas turbines, generators and fuel cells, according to a report from research firm Cleanview.A smaller subset is trying to run large campuses mostly on behind-the-meter power as a way to move more quickly than the local utility and the grid can. Infrastructure risk analysis firm Occam Edge tracks 12 projects where onsite power is the primary serving supply, representing about 10.6 GW of announced capacity.State of play: Recent hiccups are highlighting the challenges that come with bypassing the grid.Earlier this month, New Mexico's top land official rejected a gas pipeline meant to supply onsite fuel cells for Oracle's 2.5 GW "Project Jupiter" data center campus, part of Oracle and OpenAI's Stargate initiative.
- How widely is it covered?
- 1 outlet, average source rating 7.0/10.
- When was it last updated?
- 3m ago.
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Off-grid data centers aren't the panacea that some AI firms hoped
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