Published: 17 July 2024
Data centers solely reliant on power from a grid-based supply will fail; evaluating alternatives, including on-site power generation, is a priority. Product leaders making data center decisions can use this research to adapt to volatile energy pricing structures for GenAI and other applications.
Power supply issues will determine data center pricing because power shortages will force data centers to not only bid against other users for access to electricity, but also install additional on-site power-generating equipment to guarantee 24/7 operations.
Future power and utility plans are already a central factor in deciding where to build data centers.
Data center operators will install significant on-site power generation and storage to enable continuous operation when available utility power is reduced or fails. This is more than traditional backup power — on-site generation must be able to provide extended or continuous runtime when needed.
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