May. 21, 2025
by Data Center Dynamics
Data centers are transforming from passive energy consumers to active participants, driving the future of power reliability and sustainability.
With capacity demands rising – driven by the rapid growth of AI and other high-density workloads – data centers must rethink their energy strategies. This shift incentivizes data centers to move beyond passive energy consumption, evolving into active energy participants that shape, support, and stabilize the grid.
Grid-interactive microgrids represent a transformative shift, empowering data centers to actively engage with the broader energy ecosystem. In a conversation with DCD, Ryan Spivey, senior sales engineer for data centers, and Joaquin Aguerre, director of strategic portfolio at PowerSecure, shared their insights on how grid-interactive microgrids, AI-driven optimization, and advanced digital tools are transforming power management. Spivey emphasizes:
“A robust energy strategy is needed to manage the AI workloads and demands, characterized by very volatile load profiles. This is causing unprecedented power density demands, creating challenges for the grid as these infrastructure spaces are built out.”
Isolated power players
A microgrid is an intelligent system that integrates one or more energy resources, working together to support a connected load, such as the data center itself. As Spivey explains:
“These self-contained electrical networks seamlessly integrate both generation and consumption. So, you have these interactive energy sources connected to the load, allowing them to not only generate power but also draw from the utility – and vice versa, in a bidirectional flow.”
The flexibility offered by microgrids makes them particularly attractive for modern data centers by enabling participation in demand response and economic dispatch programs. Whether operating in parallel or island mode, the microgrid can adapt to meet the specific needs of the data center at any given time.
Turning backup power assets into revenue-generating resources
Traditional backup power systems, though critical for resilience, often remain idle, waiting for outages rather than actively contributing to value creation. The energy revolution represents a broader transformation, where backup assets are no longer passive insurance policies, but active tools for both resilience and revenue.
Aguerre expands on this, noting that both data centers and utilities share a common need for access to firm, fast-responding energy resources – resources that can come online within seconds during grid capacity constraints or emergencies.
This flexibility not only enhances resilience but also supports decarbonization efforts by enabling utilities to leverage grid-interactive microgrids – such as those installed by data centers – as distributed energy resources (DERs). These DERs help integrate renewables and reduce reliance on carbon-intensive peaker plants. Spivey highlights the strategic value of this integration:
“Being able to integrate emerging tech like DERs is a big play. Being able to seamlessly integrate those into the actual data center system design strengthens reliability and enables participation in energy markets.”
As permitting challenges for traditional Tier II diesel generator backup systems grow, grid-interactive microgrid solutions offer a reduced carbon alternative to address the increasing permitting challenges. This is particularly vital for AI and machine learning workloads, which demand unprecedented power density and responsiveness.
This shift reflects a broader industry trend toward sustainable, grid-supportive infrastructure, where even traditional backup assets are now expected to meet stricter environmental standards while also enhancing both operational reliability and financial performance.
This article was originally published by Data Center Dynamics and can be viewed in its entirety here.