The exponential rise in AI and crypto workloads has propelled data centers to the forefront of the global energy conversation. In response to these growing demands, Emerald hosted its latest multi-corporate Energy Sprint focused on “Energy Solutions for Next Generation Data Centers”. Through expert panels, corporate pain point mapping, and startup engagements, the Sprint unpacked one of the most complex challenges in the energy-tech landscape: powering the data infrastructure of tomorrow.
The Scale of the Data Center Challenge
Data centers consumed 415 TWh of electricity in 2024, and that figure is projected to soar to 945 TWh by 2030—almost double Japan’s current total electricity consumption. The physical footprint and power profile of these centers are equally staggering. While conventional data centers operated at 10–25 MW, modern hyperscale facilities push into the multi-gigawatt range, fundamentally challenging existing grid infrastructure.
Six Core Themes Emerged in the Emerald Energy Sprint
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Firm and Resilient Energy Supply
Data centers are evolving into power-hungry digital factories, and their 24/7 energy demands call for diversified, resilient energy portfolios. Participants emphasized:
- Geothermal, ocean energy, and SMRs (small modular reactors) as long-term, localized solutions.
- Microgrids and battery-supercapacitor systems to support grid resiliency and reduce reliance on diesel generators.
- AI-enhanced grid integration, as Transmission System Operators (TSOs) often deprioritize data centers under current dispatch rules.
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Cooling Innovations
Cooling is no longer a peripheral concern—it’s a central determinant of energy efficiency. Sprint contributors explored:
- Liquid immersion and direct-to-chip cooling, which drastically reduce power usage and raise waste heat temperatures to levels usable in industrial settings.
- Thermal inertia and storage as backup cooling strategies, especially for off-grid or urban deployments where space is limited.
- Suppliers voiced concerns over fragmented standards and the need to better anticipate where the cooling market is heading.
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Waste Heat Recovery
Participants championed waste heat reuse as a pathway to integrated urban and industrial energy systems:
- Projects like Fortum-Microsoft in Finland already heat over 200,000 households with data center exhaust.
- Heat pumps can amplify low-grade heat (25–35°C) to industrially useful temperatures (~150°C), enabling reuse in agriculture, food processing, and pulp and paper.
- One startup showed how modular data centers heat greenhouses in colder regions—a glimpse into circular, symbiotic energy loops.
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Data Centers as Flexible Energy Assets
Though data centers are capital-intensive, opportunities exist to make them grid-responsive:
- Temporal shifting: Non-latency-sensitive tasks like AI training can be offloaded to cheaper or greener energy windows.
- Geographic shifting: Workloads can be moved across facilities based on real-time grid conditions.
- Regulatory frameworks, such as those in Ireland, are already mandating that data centers contribute to grid flexibility rather than destabilize it.
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Centralized vs. Modular Architectures
There’s a growing debate between centralized hyperscale builds and modular deployments:
- Modular data centers can be co-located with energy sources, use waste heat locally, and be dropped into retrofitted urban spaces, reducing new construction pressure.
- Centralized data centers offer economies of scale but risk grid congestion and long permitting timelines.
- Experts stressed that data centers must be considered early in urban and energy planning, not retrofitted as afterthoughts.
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Foundational Technological Shifts
The hardware layer of data centers is undergoing a seismic shift:
- Silicon photonics, optical-electrical-optical (OEO) materials, and high-bandwidth interconnects are improving throughput while reducing energy loss.
- New cooling designs—like non-contact immersion racks—and rotational heat pumps capable of 100K temperature differentials are redefining thermal boundaries.
- Startups pitched systems that stack DC batteries to generate AC directly, optimizing space and resilience simultaneously.
Cross-Cutting Issues: Grid Stress, Cybersecurity, and Material Limits
Participants raised concerns about systemic limitations beyond technology:
- Grid bottlenecks and transformer shortages (50% of EU grid aging by 2030, 80% of U.S. transformers by 2050) jeopardize expansion plans.
- Cybersecurity gaps and lack of data center standardization threaten reliability and interoperability.
- Material constraints—especially copper—were flagged as looming barriers to rapid infrastructure deployment.
The Strategic Outlook
A clear message echoed across the Sprint: data centers must evolve from passive energy consumers to active nodes in the energy system. They can provide:
- Load-balancing and backup functions
- Localized heat distribution
- Demand-side management services
But this will require coordinated advances in policy, technology, and market design.
Emerald’s Sprint showcased how a multidisciplinary lens—spanning power systems, hardware, cooling, and city planning—can surface robust insights. As data centers become the backbone of the digital economy, they must also become engines of sustainable energy transformation.
To learn more about participating in Emerald Sprints, please contact Emmi Kaipio, Emerald’s Sprint Director.
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