Escaping the grid: Data centers tap into the future of onsite power
Spearheaded by the proliferation of technologies like generative AI, 5G and augmented reality, data center demand across the globe has increased dramatically over the past decade.
The Rocky Mountain Institute found that virtual power plants (VPP) — a decentralised network of small energy assets such as solar panels or smart thermostats that are co-ordinated with software — could be utilised by data centres to meet much of their energy needs by shifting demand during peak periods.
To address this, we developed a companion report titled, Virtual Power Plant Profiles and Inventory. This goal of this report is to better understand the challenges and opportunities to scaling VPPs from the utility, solution provider and regulator perspective.
Instead of waiting years for natural gas plants to be built or to interconnect solar or wind assets to the grid, VPPs are available to help data centres meet demand now. If data centres and other large loads invest directly in VPP programmes, that could insulate households and small businesses from higher electricity prices.
Investment in Software Solutions Support VPP Integration: Successful VPPs use software solutions, such as distributed energy management system (DERMS) and Advanced Distribution Management Systems (ADMS), to seamlessly integrate DER deployment into grid operations.
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