Last week, Oracle CEO, Larry Ellison, told investors that the company would be constructing a data center that requires more than 1GW of energy. To meet this immense energy requirement, the company plans to power the data center with three small modular nuclear reactors (SMRs). While Ellison anticipated that analysts and investors would find this announcement “bizarre,” it really shouldn’t catch anyone in the data center industry by surprise. Finding available power to run increasingly energy-hungry data centers in the age of artificial intelligence (AI) has become a challenge for hyperscalers and colocation providers, alike. The need for more power has even forced some public utilities to backtrack on green energy goals and embrace less sustainable forms of energy simply to meet demand. With power at a premium, data center operators need to ensure that they’re using every single MW of commissioned power in their data center. However, for some lower density colocation and legacy data centers, there could be more commissioned energy available to offer, even if all of the current floor space is occupied.. Can this energy be utilized, or will it continue to be wasted? What are some ways data center operators can ensure they’re using every available electron from their power systems? To find out, we sat down with Steve Altizer, the CEO and President of Compu Dynamics.
The Modern Data Center Journal (MDCJ): What is stranded power?
Steve Altizer: For the purpose of this discussion, stranded power refers to generator-backed and potentially UPS-conditioned power that is available within a data center’s power infrastructure, but is not currently being utilized by paying customers.
For example, let’s say a fully-populated data center running low-density computing, storage and network gear has 20MW of commissioned power, but it’s systems are only delivering 50 percent of that capacity to the data center occupants. There’s no additional floor space within the envelop to bring in new customers, so 10MW of available critical power represents a significant lost opportunity for the colo provider.
I would call that remaining 10MW stranded power. It has no current path to utilization. And, because capacity levels in data centers do not change rapidly, it’s quite possible that this 10MW will remain unused for years to come.
MDCJ: Why would data centers be concerned about stranded power? Why is this a big deal right now?
Steve Altizer: There is an industry-wide power availability challenge facing the data center industry. The demands of our increasingly digital lifestyles coupled with the rise of new technologies like artificial intelligence (AI) have driven massive expansion in the data center industry.
“With power constrained across much of the industry, it’s obvious why a data center operator wouldn’t want to have stranded, or wasted, power in one of their facilities. That stranded power is effectively lost revenue…” – Steve Altizer
The increasing rack densities within AI data centers are also increasing the amount of power that individual data centers require. This means we’re building larger, increasingly power-hungry data centers faster than utilities and local governments can build energy infrastructure to meet those requirements.
This has driven quite a few interesting trends in the data center industry. We’re seeing data centers spring up in new data center markets where we have never seen significant data center construction before all because these markets have available land and power. That is how significant the power availability problem is in the data center industry.
With power constrained across much of the industry, it’s obvious why a data center operator wouldn’t want to have stranded, or wasted, power in one of their facilities. That stranded power is effectively lost revenue – money being left on the table in the form of available electricity that they cannot sell to customers.
MDCJ: What can data center operators do to unlock their stranded power?
Steve Altizer: There is a concept called power harvesting that involves identifying areas of the data center where there is stranded power and finding ways to put that power to work for the operator. One of the ways this can be accomplished is by adding useable square footage to data centers that have stranded power.
Compu Dynamics has developed modular solutions that enable data center operators to seamlessly expand their data centers. This delivers the extra floor space needed to take advantage of the stranded power in the data center.
These secure, purpose-built, modular solutions range from 1MW to 10MW and can be deployed more quickly than new greenfield data centers. They also give operators precise control over power density, cooling method, and every other aspect of their IT environment.
“There is a concept called power harvesting that involves identifying areas of the data center where there is stranded power and finding ways to put that power to work for the operator.” – Steve Altizer
MDCJ: Do you have examples of companies that have actually done this? What was the result?
Steve Altizer: We recently designed a two-story, medium-density, low-PUE modular expansion to a data center facility for one of our customers. This customer had a decade-old data center with 20MW of commissioned power. However, the data center was fully leased with low-density compute, absorbing only 10MW of critical power.
The modular solution designed by Compu Dynamics will deliver additional space with 2 MW of critical power and the option to deliver liquid cooling in the future. This will enable the customer to increase revenue significantly.
We are now working on a second single-story power harvesting design for this same client.
MDCJ: What does a data center operator have to consider when contemplating a modular solution like the one Compu Dynamics developed for its customers?
Steve Altizer: First, they need to identify a partner with experience designing and deploying modular, custom-built solutions, not pre-configured, one-size-fits-all container solutions. This is the only way to ensure that data center operators are getting a solution that meets their unique requirements. Not all data center requirements are equal, especially when adding capacity to an existing site.
“There is an industry-wide power availability challenge facing the data center industry. The demands of our increasingly digital lifestyles coupled with the rise of new technologies like artificial intelligence (AI) have driven massive expansion in the data center industry.” – Steve Altizer
Next, data center operators need to identify what they’re looking for in their modular solution. They need to identify how many cabinets they want, whether they’d like a caged or open environment, their desired rack power density, and any other preferences specific to that application.
Once they have identified their requirements and preferences, we can develop a modular concept that is completely customized to their needs. We can use modular factory-fabricated components to shorten lead times and potentially reduce overall cost. Our solutions will address all of their site constraints, system integration needs, budget limitations, timing requirements, and operational needs.
