News & Insights
GUIDE: Power options for data centers
Power availability has become one of the largest constraints in data center development. In many regions, utility interconnection timelines now extend several years due to rapid demand growth from cloud computing and artificial intelligence infrastructure. Developers are increasingly evaluating hybrid power strategies that combine grid connections with onsite generation, storage, and renewable energy resources to accelerate deployment timelines while managing long-term goals.
Salas O’Brien’s comparison guide examines the power options data center developers are actively evaluating today, highlights which technologies are realistically deployable in the near term. It explores the tradeoffs that matter most during early planning. Power solutions for data centers have to be layered to meet timelines. This guide creates a framework to facilitate the conversation.
GUIDE: Power Options for Data Centers
Contributors: Jamie Landers, PE; Alan Watson, PE; Fred Miller
This guide outlines the power options data center developers are actively evaluating. The goal is to clarify what’s practical, what’s conditional, and what requires long-range planning. Developers already know:
Power is the gating issue.
The question is how projects move forward inside those constraints. Strategies fall into two broad categories: 1) generation that can be colocated with the data center; and 2) power delivered through the grid.
Selection of on-site power generation sources or grid connectivity bring different implications for schedule, capital planning, operational control, emissions, and long-term flexibility.
Some options are available now while others are emerging and being deployed based on geography, utility posture, and regulatory context. Power strategy shapes not only schedule, but the life of the facility.
Power decisions are system decisions.
There is no single right answer for data center power; this comparison explores the practical advantages and constraints of each option to support layered and evolving approaches.
How hyperscalers evaluate power strategy early
At hyperscale, power decisions shape portfolio velocity and capital deployment. The question is which tradeoffs remain acceptable when repeated across dozens of sites.
What drives the decision
Time to capacity dominates. The ability to deliver large, predictable load blocks on schedule outweighs most other variables, especially when paired with solutions that can be replicated across regions without introducing operational variance.
Where programs break down
Risk concentrates when portfolios depend on future transmission upgrades, overestimate the scalability of emerging technologies, or defer power decisions too late in site sequencing. Each of these introduces friction that compounds across markets rather than remaining isolated to a single project.
What works at scale
Successful programs screen sites by viable power pathways, plan for phased power models that preserve long-term optionality, and manage risk at the portfolio level to avoid shared dependencies that can stall multiple sites at once.
Salas O’Brien helps data centers with power strategy
We can help enterprise clients, developers, and hyperscalers find the right mix for their context and make a plan for speed to market or transitions over time.
To talk about your data center project, reach out to [email protected].
Jamie Landers, PE
Jamie Landers is a market leader in energy and utility systems and helps clients identify opportunities to reduce operation costs, improve reliability, and deliver new services. He is well-known in the industry for his ability to drive progress and resolve problems. Jamie serves as a Senior Vice President at Salas O’Brien. Contact him at [email protected].
Alan Watson, PE
Alan Watson is a senior electrical engineer and subject matter expert with 20 years of experience in electrical power and SCADA systems. He brings deep expertise across power generation, renewable energy, and microgrids, utility interconnection, and medium-voltage system design. Alan’s background includes commissioning and field start-up for system integration, switchgear installation, and communications networks, and he is known for providing trusted technical leadership on complex, large-scale electrical systems. Alan serves as a Principal at Salas O’Brien. Contact him at [email protected].
Fred Miller
Fred Miller leads at the intersection of commercial strategy and technical delivery in mission-critical environments, focusing on resilient, sustainable, and cost-optimized infrastructure across AI/HPC, hyperscale, colocation, enterprise, and edge data centers. Fred serves as a Project Executive for Mission Critical Business Development at Salas O’Brien. Contact him at [email protected].