Meeting the Growing Power Demands of Data Centers in the Age of AI

The rise of artificial intelligence (AI) and other technological advancements has driven an unprecedented surge in data generation and processing. This has increased the demand for large-scale data centers, which power AI algorithms, support cloud computing, and enable real-time analytics. However, their rapid expansion presents a major challenge: soaring energy consumption.

The Rising Demand for Power

Across the U.S., data center expansion is straining the power grid. Pennsylvania already hosts 71 data centers, with more on the way. Virginia, where data centers consume nearly 25% of the state’s electricity, offers a glimpse into Pennsylvania’s potential future. As data centers grow, energy demand will rise, forcing utilities and policymakers to rethink energy infrastructure.

Without proactive measures, both data centers and consumers may face rising energy costs and grid instability.

Four Paths Forward

There are four primary approaches to addressing this challenge:

Expand Energy Generation and Plan for Data Center Development – 

Ensures sufficient energy supply and stable consumer electricity costs while supporting economic growth.

Keep Generation the Same but Continue Developing Data Centers – 

The power grid will become strained, leading to disruptions in electricity supply for both data centers and consumers, ultimately impacting the reliability and resiliency of the power system.

Expand Generation but Do Not Plan for Data Centers –

Overbuilt electricity infrastructure raises costs without maximizing economic benefits.

Fail to Expand or Plan for Data Centers –

Regions without investment in energy and data center infrastructure risk falling behind.

Innovative Solutions to Meet Growing Demand

To address the increasing energy demands of data centers while maintaining sustainability, innovative energy solutions are required. Cordia, an energy solutions provider, is at the forefront of deploying distributed generation (DG) to help data centers generate their own power. 

Cordia has been operating in Pittsburgh since 1969 and currently has approximately 40 MW of dispatchable behind-the-meter distributed generation, and 701,000 lbs/hr of steam and 14,234 tons of chilled water in the state, with the interest and capacity to rapidly expand to up to 100 MW or more to support the growth of data centers. By leveraging these resources, Cordia can help ensure that data centers have access to reliable, efficient power solutions without overburdening the existing grid.

Key technologies include:

Microgrids – Localized grids that enhance reliability and reduce transmission losses.

Combined Heat and Power (CHP) Systems – Captures and reuses waste heat to improve efficiency.

Leveraging decentralizing power generation, technology can enhance grid stability while ensuring that data centers can grow without overburdening existing infrastructure.

Data Centers as Energy Assets

Rather than being seen solely as power consumers, data centers can also serve as energy assets. Innovative solutions enable them to repurpose excess heat for nearby facilities. For example, a data center near a stadium could transfer heat to warm the venue, while the stadium’s cooler air could help regulate the data center’s temperature. This symbiotic relationship optimizes energy use and reduces waste.

The Path Forward

The collaboration between data centers, energy providers, and policymakers will be crucial in addressing the growing power demands of the digital economy. By leveraging distributed generation, energy storage, and advanced cooling technologies, data centers can continue to expand without overloading the grid.

At Cordia, we are committed to working to implement sustainable, efficient energy solutions that support the evolving needs of data centers. Through strategic planning and technological innovation, we can ensure that the rise of AI and digital infrastructure does not come at the cost of economic stability or environmental responsibility.