Across the U.S., district energy systems are helping data centers meet the energy demands of a surge in artificial intelligence (AI) adoption and the increasing need for reliable data.
Data centers can benefit from district energy systems, which produce and distribute thermal energy in the form of steam, hot water, and chilled water. Thermal energy is produced at a central facility and distributed to connected buildings through a network of underground pipes, allowing building owners to forego the installation and management of onsite generation equipment. District energy has emerged as a powerful solution for data centers that are looking to reduce carbon emissions, drive efficiency, and ensure reliable service.
Benefits of district energy for data centers
District energy is an ideal solution for data centers that are powering U.S. cities towards a future of increased AI adoption, especially those focused on sustainability and operational efficiency.
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Speed to market: District energy systems accelerate speed to market by allowing data center developers to tap into cooling capacity more quickly, avoiding the delays of building new on-site generation. District energy has ready-to-go capacity that can get a data center to market up to 12 months sooner than implementing a local data center energy solution.
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Meet sustainability goals: Data centers connected to a district energy system will immediately benefit from any technology, efficiency, or carbon reduction strategy implemented at the system’s central facilities. Today, district energy systems like Vicinity’s are taking critical steps to eliminate carbon emissions in their operations, offering data centers a path forward to meeting their sustainability goals.
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Increased reliability: By eliminating the burden of onsite chillers, district energy offers safer and more sustainable energy source. Vicinity has a 99.99% reliability and a team of over 450 energy experts, allowing data centers to deliver data efficiently while we ensure 24/7 energy delivery.
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Scalability and cost savings: District energy systems produce thermal energy at a centralized facility, which is more efficient than individual systems. This can reduce energy consumption and lower energy costs. Additionally, district energy service can be installed quickly and scale to meet the growing demand for AI.
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Space savings: Buildings connected to a district energy system no longer need space for onsite boilers, chillers, water heaters, and cooling towers.
- Minimal disruption: District energy is less disruptive to data centers and businesses in the surrounding area. A data center operating near a district energy system simply connects to the existing underground piping network of the district energy system to resolve their cooling and humidification needs.
How can data centers leverage district energy?
District chilled water can provide primary cooling for space and equipment within data centers. District steam can also be used to humidify data center operations. Because of their built-in redundancy and backup fuel and water sources, district energy systems can manage load fluctuations and withstand extreme weather events.
District energy drives carbon savings and reduces strain on the electric grid
As the use of AI strains local utilities, district energy systems are being looked at to relieve pressure from electrical grids. Notably, district energy systems can recover heat otherwise exhausted by data centers and use that energy to heat a city. Waste heat recovery drives reductions in carbon emissions produced by data center operations and provides emissions free energy for city district energy systems.
Waste heat from a data center can provide a consistent heat supply, freeing up generators at the district energy facility to participate in demand response programs. Demand response involves shifting energy consumption during periods of peak demand or high electricity prices. District energy systems can adjust their operations in response to the needs of the electric grid, reducing the demand for grid electricity, lowering costs, and improving grid stability.
In particular, district energy systems can be paired with thermal storage systems to provide demand response capabilities.
- Charging during off-peak hours: The central plant can use stored, inexpensive, off-peak or surplus renewable electricity to create thermal energy. The energy can be stored in a variety of thermal storage mediums, from ice storage to lava rocks.
- Discharging during peak hours: During periods of high electricity demand or cost, the central plant can reduce its electricity usage by drawing on the stored thermal energy to meet customer needs.
In addition, district energy systems are often co-located with large-scale electrical infrastructure. Where applicable, district energy systems can create energy dense campuses to serve co-located or nearby data centers. This reduces the need for cities to build new, costly transmission infrastructure and leverages the large amounts of power produced at district energy facilities.
