News & Insights
How hyperscale data centers are coping with rising energy demands
Explore how hyperscale data centers are tackling rising energy demands by leveraging onsite power generation and by increasing energy efficiency.

What if you needed more power than the energy grid could deliver? For hyperscale data centers, this isn’t hypothetical; it’s a growing reality. As demand for digital services from AI processing to global streaming platforms explodes, these facilities are pushing the limits of what traditional energy infrastructure can support.
The challenge isn’t just about keeping pace with rising energy needs; it’s about innovating ahead of the demand curve while maintaining efficiency, sustainability, and operational reliability. For leaders in this space, the stakes couldn’t be higher.
The growing energy challenge for data centers
In the United States, the Electric Power Research Institute (EPRI) estimates that data centers could consume up to 9% of the nation’s electricity generation by 2030, more than double current levels.
This surge is largely attributed to the rapid adoption of AI technologies, which require substantial computational power. Goldman Sachs Research forecasts that data center power demand will grow by 160% by 2030, with AI being a significant contributor to this increase.
These projections match Salas O’Brien‘s experience with our mission-critical clients, underscoring the critical need for hyperscale data centers to explore multi-faceted power sources and to implement innovative energy efficiency measures to manage rising energy demands effectively.
Shift to multi-faceted power sources
The surge in power demand has forced data center owners to rethink their energy strategies, leading many to adopt a combination of solutions, including onsite power generation. The challenges of producing enough from any one source is driving the multi-layered strategy.
- Onsite generation. Hyperscale facilities are increasingly leveraging onsite continuous operating generation assets to create isolated power islands in areas which do not have access to sufficient electrical grid capacity. These microgrid systems are designed in many cases to operate on multiple fuel sources but primarily leverage natural gas to achieve the necessary energy density and resiliency for a data center. Supplemental renewable energy source alternatives and heat recovery are often considered within the energy portfolio to offset fuel usage and improve overall power usage effectiveness (PUE).
- Emerging onsite generation solutions. Generation technology is being designed with future hydrogen fuel blends in mind to assist in transitioning to reduced hydrocarbon fuel consumption. Fuel cells, capable of running either on natural gas or hydrogen, are providing an alternative to traditional generators and have a reduced emissions profile. Battery Energy Storage Systems (BESS) have become critical to the success of data center operations by providing short term ride-through capacity in place of traditional UPS and stabilize voltage and frequency fluctuations inherent in AI focused operations. Small modular reactors (SMRs) as a future on-site generation solution are particularly appealing for data centers as they offer scalability, extremely high energy density, and sustainable low-carbon operation.
- Partnerships. To supplement onsite solutions, many data centers are partnering directly with power plants and utility providers for innovative sourcing. This collaboration helps stabilize the grid while reducing operational costs. Partnerships bridge from power purchase agreements (PPAs) for renewable energy to more advanced partnerships to build co-located power plants next to data centers for sole-source supply.
By combining these approaches, hyperscale data centers are not just addressing immediate challenges—they’re pioneering new standards for efficiency, sustainability, and resilience. These innovative, multi-faceted strategies are setting a precedent for energy management that will influence industries far beyond digital infrastructure.
Reducing energy use through innovative technologies
In addition to diversifying energy resources, hyperscale data centers are optimizing to reduce their overall power consumption. Strategies include:
- Geothermal for cooling systems. Data centers require massive cooling capacity to manage the heat generated by their servers. Geothermal systems can provide efficient cooling through ground-source heat pumps. These systems leverage the stable temperature of the earth to transfer heat away from the facility, reducing the energy required for traditional air-conditioning systems.
- Direct liquid cooling (DLC) systems. Liquid cooling, which is significantly more efficient at removing heat from densely packed servers, works best at the chip level. By circulating directly around components, liquid cooling allows data centers to operate at higher densities without overheating.
- AI-driven energy management. AI systems analyze large volumes of operational data to identify inefficiencies, predict demand fluctuations, and optimize resource allocation in real time. Integrated with building management systems, AI can dynamically adjust cooling systems, balance workloads, and even forecast maintenance needs, all of which help minimize energy waste. While the potential of AI is significant, its adoption in facility management is still in its early stages as operators adapt to new approaches.
- Heat reuse technologies. Heat reuse technologies capture the waste heat generated by servers and repurpose it outside the facility. This waste heat can be redirected to heat nearby buildings, provide hot water, or support industrial processes, contributing to energy efficiency on a broader scale beyond just the data center.
- Hot/cold aisle containment. A common climate control strategy, hot/cold aisle containment focuses on improving energy efficiency within a data center by physically separating hot and cold airflows. This approach minimizes the mixing of hot air expelled by servers with the cold air used for cooling, reducing energy consumption needed to maintain optimal operating temperatures.
- Alternate water use strategies. Evaluating available wastewater or rainwater sources is becoming a key factor in data center site selection. While evaporative cooling plays a significant role in reducing PUE, it also places considerable demand on domestic water supplies. As a result, integrating sustainable water recycling systems to produce industrial or gray water is rapidly becoming a top priority for many hyperscalers.
By leveraging these technologies, hyperscale data centers work both sides of the power equation by reducing usage while increasing generation.
How Salas O’Brien can help
Salas O’Brien partners with hyperscale and AI data centers to tackle the challenges of rising energy costs, limited grid power capacity, and restricted water availability. Our team brings extensive expertise in designing energy-efficient systems, executing sustainable and reliable microgrid power islands, and implementing advanced cooling and AI-driven energy management solutions. Our data center design practices incorporate a focus on flexibility and modularity to minimize disruption caused by technology advancements in the industry. This philosophy allows our team to deliver strategies that improve efficiency, reduce costs, and support long-term growth.
Whether you’re expanding your facility, upgrading existing systems, or exploring innovative energy strategies, Salas O’Brien is ready to help. Reach out to our experts below to discuss how we can support your next project.
For media inquiries on this article, reach out to Stacy Lake, Director of Corporate Communications.

Vello Ehvert, P.Eng., PE, LEED AP, Uptime Accredited Tier Designer
Vello Ehvert has a global reputation for delivering innovative data center solutions by employing a manufacturing approach to engineering and advanced mechanical, electrical, and plumbing (MEP) systems. With over four decades of engineering, construction, and project management experience in the mission-critical sector, Vello continues to lead industry advancements in data center design and construction. Vello serves as Managing Principal, Mission Critical for Salas O’Brien. Contact him at [email protected].

Curt Williams, PE
Curt Williams has extensive expertise in mission-critical projects and is known for delivering precise, constructible designs within tight timelines. His relational and collaborative approach fosters strong, long-term client partnerships, enabling him to consistently support projects across multiple phases and needs. Curt serves as a Principal at Salas O’Brien. Contact him at [email protected] .