A recent study has revealed that renewable energies like wind, solar, and battery-supported microgrids can power datacenters more affordably than small modular reactors (SMRs). With data centers increasingly reliant on energy due to AI advancements and rising electric vehicle demand, operators are exploring alternatives to traditional power sources. Nuclear options like SMRs have been considered, but the Centre for Net Zero (CNZ) suggests renewable microgrids offer significant cost benefits. According to CNZ, employing a 120 MW microgrid setup with offshore wind, solar power, and gas for backup would reduce operational costs by 43% compared to an SMR. These findings are grounded in CNZ’s research, a UK-based institute advising bodies like the International Energy Agency. The UK faces some of the highest energy costs globally; nevertheless, the study’s conclusions likely apply internationally. While SMRs take a decade to become operational, microgrids are buildable within five years, providing a more immediate solution. CNZ estimates that renewables can satisfy 80% of a large datacenter’s annual energy needs, primarily through offshore wind, supplemented by gas and battery storage. Over time, increased battery storage could further reduce gas dependency, illustrating the evolving viability and cost-effectiveness of renewable energy for datacenters.