Data Centre Microgrids and Dispatchable Capacity

This white paper discusses the role of dispatchable capacity in data centres and the potential of microgrids in addressing the energy demands of the European data centre industry. It outlines the challenges faced by data centre operators, including increasing power demands and lengthy grid connection delays. The paper presents microgrids as a viable solution, enabling data centres to generate their own power and thus alleviate pressure on the grid. It details how combining renewable energy sources, grid balancing engines, and energy storage can optimize microgrid performance, supporting the energy-intensive needs of data centres. The findings suggest that the microgrid market in Europe is poised for significant growth, driven by local energy communities and the need for flexible energy solutions. The paper emphasizes the importance of recognizing the benefits of sharing dispatchable capacity with the grid to support the transition to net zero and enhance the competitiveness of Europe in the AI sector.