Generating on-site power takes time, in theory a better way would be to just upgrade existing energy grids to push more power through to data centers. This leads us to grid upgrades and ultra-high voltage (UHV) networks. Grids are being constantly upgraded but it’s never really been a major concern for the tech industry. Sure the hyperscalers run their own data centers and there are wizards that manage them. But generally your 200MW data center power budget was fine to run your Intel Xeon at 1500W at absolute peak power. Now the problem moves outside the data center to the pipes outside. Before your problem was technical, now your problem is political. Call the lobbyists. Anyway, one doesn’t just upgrade the grid and build UHV networks. Getting more power through the cables is a challenge. But also these data centers are often far from traditional power sources necessitating efficient long-distance power transmission. Also, we aren’t just building a new coal plant here. New data centers will need to incorporate renewables too for which grids across the world haven’t yet managed to fully onboard. So what to do? Answers: HVDC (High Voltage Direct Current) transmission systems, grid-scale energy storage, and superconducting power cables.
Opportunities
HVDC (High Voltage Direct Current) transmission systems
Grid-scale energy storage
Superconducting power cables
Others
Dynamic Line Rating (DLR) Technologies
- Flexible AC Transmission Systems (FACTS): FACTS devices use power electronics to enhance controllability and increase power transfer capability of AC transmission systems. They can provide rapid voltage control, improve system stability, and optimize power flow, which is particularly beneficial for managing the variable loads associated with AI data centers. See ABB (Switzerland), Siemens Energy (Germany), GE Grid Solutions (USA).
- Advanced power flow control devices: These devices, such as Unified Power Flow Controllers (UPFCs) and Thyristor Controlled Series Capacitors (TCSCs), offer precise control over power flow in transmission lines. They can redirect power flow from congested lines to underutilized ones, effectively increasing the overall transmission capacity of the grid. See Smart Wires (USA), Hitachi Energy (Japan/Switzerland):
- Wide Area Monitoring Systems (WAMS): WAMS employ Phasor Measurement Units (PMUs) and advanced communication networks to provide real-time, synchronized data on power system conditions across large geographic areas. This technology enables better situational awareness, faster response to disturbances, and more efficient grid operation. See Schweitzer Engineering Laboratories (SEL) (USA), NR Electric (China), Vizimax (Canada).
Grid-Scale Energy Storage W/ Peep Siitam of Energiasalv