Data centre developers and operators require redundancy for high reliability, with some needing up to 99.999 percent reliability of power supply to ensure no outages disrupt their operations and services. Typical power plants provide 88-90% availability. Therefore, redundancy is required to meet the high reliability needs of data centres. Continuous and stable energy supply is crucial to avoid significant financial repercussions from outages, in the form of liquidated damages owed by the power plant owner.
To meet the stringent reliability requirements of data centres, the system must include sufficient redundancy. This means having additional units on standby, ready to ramp up instantly if a unit fails. In some cases, bridging technologies may also be necessary to ensure seamless transitions and maintain continuous power delivery. To help a client forecast behind-the-meter power requirements, we developed a high-level reliability simulation tool that evaluates the number of proposed generators, incorporating assumptions on scheduled maintenance and forced outages.
Using a Monte Carlo analysis, it assesses the likelihood of one or more generating units failing simultaneously, taking planned outages into account, and can be used to estimate reliability associated with a proposed configuration. Conversely, the tool can be used to find a configuration that meets a particular reliability requirement.
What factors are critical when selecting a site?
Environmental considerations play a critical role in data centre development, particularly when it comes to site selection and power infrastructure planning. Effective site analysis involves evaluating proximity to key infrastructure such as natural gas and water sources, transmission lines and fibre optic infrastructure, while also accounting for environmental constraints, regulatory requirements and land availability. Water availability determines the cooling options that are available to the data centre and thus is an important aspect in overall system efficiency. Factors like noise, heat generation, and air quality must be considered to ensure regulatory compliance and minimise community impact.
Permitting processes are supported by detailed matrices and schedules that help guide decision-making. Additionally, environmental teams often work closely with engineering counterparts to evaluate power generation options—including natural gas, hydrogen, battery storage, diesel and solar—to ensure reliable and sustainable energy supply. Collaboration between environmental and engineering teams streamline this process, enabling faster delivery of site assessments and development strategies.
In one case, we worked with a client to evaluate sites across multiple states for a new power plant to support a hyperscale data centre. Site evaluations were guided by several strategic factors, including proximity to a prominent CO₂ pipeline, availability of sufficient acreage, avoidance of non-attainment air quality zones, access to natural gas and water infrastructure, wetlands and other remediation zones, and the feasibility of transmission interconnection.
Based on these considerations, the recommended approach is to select the site that best aligns with both strategic and logistical priorities—particularly those related to environmental compliance and infrastructure access.
How are developers balancing speed with sustainability?
Speed to deployment has always been important, but today it is a top priority with the tech giants all vying for AI supremacy.
Some data centre developers are opting for behind-the-meter power plants for speed to market, but tying into the existing grid enhances reliability. We work with major Original Equipment Manufacturers (OEMs) to tailor generating options that are ideal for the specific needs of each data centre, ensuring both speed and reliability.
Developing strategic partnerships early on with environmental groups is crucial to fully understand land acquisition needs and minimise community impacts. Involving engineering consultants early in the process helps address reliability and meet the total megawatt requirements of data centres.
