The idea of colocating data centers with behind-the-meter generation is picking up steam, including large projects in Memphis, Texas, and Utah developing significant on-site capacity, mostly from combined-cycle gas plants. The main argument is speed to power. Building your own generation allows data centers to sidestep the challenges involved in grid upgrades, transmission, and permitting. 

But when does a good idea jump the shark?

In this episode, Shayle brings Brian Janous back on the show to talk about why a data center might not want to colocate generation. Brian is co-founder and chief commercial officer at data center developer Cloverleaf Infrastructure. He makes the case for relying on alternatives instead, like batteries, grid-enhancing technologies (GETs), advanced conductors, and a range of other non-generation options to take advantage of untapped capacity in the existing grid. Shayle and Brian cover topics like:

Whether 24/7 loads actually needs 24/7 power and why utilities solve for peaks, not 24/7 needs 

The constraints of colocation, including gas constraints, added complexity and cost, and permitting challenges

The complexity of multiple-party solutions involving VPPs, GETs, and other alternatives vs. the relative simplicity of single-party generation 

Why both Shayle and Brian are skeptical of on-site nuclear

Resources:

Catalyst: The case for colocating data centers and generation  

Latitude Media: AEP, Dominion argue there’s no such thing as ‘isolated’ colocation for data centers  

Catalyst: Explaining the ‘Watt-Bit Spread’  

Catalyst: The potential for flexible data centers  

Credits: Hosted by Shayle Kann. Produced and edited by Daniel Woldorff. Original music and engineering by Sean Marquand. Stephen Lacey is our executive editor.

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