Ensuring the availability of energy is essential for datacenter operators, who must become energy producers to remain viable in a future where utility grids can’t meet their growing demand. According to Bob Johnson, VP analyst at Gartner, the ongoing AI boom is driving the construction of data centers faster than the current infrastructure’s capability to provide sufficient power. New electricity generation projects are underway, but these will take time to activate and won’t cater to the immediate needs of upcoming data centers.

The reliance on power from the grid is decreasing, with Gartner forecasting that only 40% of new facilities will solely use electricity from the grid by 2028. It’s crucial for datacenter tenants to demand clarity from operators regarding their power strategies and to understand how these choices affect their service pricing.

By 2036, it is anticipated that nearly 40% of new data centers will utilize on-site power solutions fueled by emerging clean technologies, which are not yet commercially viable. Options like small modular reactors and the potential of fusion energy, as indicated by initiatives such as Microsoft’s fusion energy acquisition, highlight possible pathways.

Currently, hydrogen fuel cells produce significant greenhouse gases as they depend on natural gas. However, the emergence of ‘green hydrogen,’ generated from renewable-energy-based electricity, represents a cleaner alternative.

Regardless of the chosen method, datacenter operators will serve as pioneers in the use of new clean power technologies, with the associated costs being passed on to early adopters.

Every SaaS and IaaS user may feel the financial ripple effects, as energy availability and costs become more significant components of service pricing.

Gartner stresses the importance of incorporating energy sustainability into the due diligence criteria for cloud services to ensure access to power during limited availability. This forward-thinking approach is essential as the industry navigates this transition.