Future-Proofing Data Centers Through On-Site Power and Distributed Carbon Capture

The past few years have marked a time of unprecedented growth for data centers. Across primary U.S. markets, the number of data centers surged in 2024, including rapid development beyond traditional markets and into rural areas in Appalachia, Western states, and the South. While this growth has been necessary to facilitate the AI boom, behind this momentum lies a pressing concern — the growing power demands of these facilities competing for electricity, combined with the often contradictory sustainability demands of customers. 

The Rocky Mountain Institute 2024 report, “Powering the Data Center Boom with Low-Carbon Solutions”, highlights that most data center hubs are either running out of grid capacity or facing challenges supporting the electricity consumption growth led by data centers.

Data centers must rapidly find solutions beyond traditional efficiency and cooling improvements. But utilities and the transmission infrastructure are not set up to bring online clients that seek gigawatts of power, especially when it comes to clean power with a 99.9% capacity factor. Hence, we see the re-emergence of nuclear power,  agreements outside of traditional utility structure, and renewed interest in onsite power generation. In fact, a recent survey by Bloom Energy shows that 30% of data centers are planning to use onsite power as a primary source of electricity.

Combined Heat and Power (CHP) systems and fuel cells provide reliable onsite power that can operate independently of the grid. Additionally, because CHP systems convert chemical energy into electrical energy with fewer losses, these technologies offer attractive onsite energy efficiency. However, whether such a system consists of fuel cells, RECIP engines, or turbines, the primary power generation source is usually natural gas. While CHP solves the problem for reliability and onsite power generation, it still faces an obstacle where the data center developer requires low or zero emissions. 

To address this challenge, there’s no better option than integrating CHP and fuel cell systems with distributed, modular, and stackable carbon capture technologies. By combining distributed carbon capture (DCCS™) with alternative power sources, data center operators can achieve significant reductions in greenhouse gas (GHG) emissions, thereby aligning with global climate objectives and the commitments of key customers, while addressing electricity consumption needs onsite. 

Distributed carbon capture technology is designed to operate concurrently with CHP or fuel cells,  trap the CO2 before it is emitted into the atmosphere, and turn the captured CO2 into a useful industrial product, mineralize it into rock, or sequester it underground. 

Distributed carbon capture solutions provide multiple advantages over the traditional stationary amine-based carbon capture systems. This type of technology does not require chemical solvents that create toxic water challenges, or 150-foot-tall towers that require height permitting. The systems use solid sorbents to trap the CO2 in a series of stackable 6-foot vessels. 

Additionally, because these system are containerized, fully modular, and stackable, they can easily be expanded as the needs of data center facilities grow by adding additional trains. Finally, the systems are already pre-designed for use with different types of fuel cells and engines, with the entire package offering a cost-competitive solution in virtually any geographic region.

The synergistic integration of onsite power and carbon capture enables data center operators to future-proof their facilities against regulatory uncertainties and customer pressures for sustainability, while ensuring a predictable supply of high-capacity factor, automated onsite power supply. This solution can be combined with other options like small nuclear reactors, utility power, and renewable energy power purchase agreements. 

There is finally a pathway for data centers to address both power needs and decarbonization, while maintaining full control over power supply - without compromising reliability, cost, or sustainability.