Could a New Kind of Power Supply Help Make Data Centers Grid-Friendly?

As the demand for data centres continues to surge, concerns are mounting over the ability of the US power grid to accommodate these energy-intensive facilities. ON.energy is developing an innovative medium-voltage uninterruptible power supply (UPS) that uses artificial intelligence to manage energy flows, helping data centres stabilise their power consumption and maintain operations during grid disturbances or blackouts. This AI UPS aims to smooth out rapid fluctuations in power demand, which are characteristic of hyperscale data centres, thereby reducing stress on the grid and enhancing overall reliability. To rigorously test this novel technology, ON.energy has partnered with the National Laboratory of the Rockies (NLR), which has created a unique testing environment capable of simulating both a data centre and a power grid. The NLR’s Advanced Research on Integrated Energy Systems (ARIES) platform allows the AI UPS to be evaluated under a variety of realistic scenarios without risking disruption to actual power infrastructure. This dual-simulator setup enables detailed examination of how the system handles sudden energy spikes, voltage irregularities, and other grid anomalies, providing critical insights into its performance and resilience. The scale of energy consumption by data centres is staggering, with individual facilities using as much power as a small city. Unlike other large energy users, data centres can experience rapid and unpredictable swings in demand, posing challenges for grid stability. ON.energy’s AI UPS is designed to mitigate these issues by acting as a buffer, ensuring that the grid experiences a more consistent load even when data centre power needs fluctuate dramatically. This capability is particularly important as hyperscale data centres become central to supporting artificial intelligence, machine learning, and essential services across sectors such as finance, healthcare, and defence. Industry experts at NLR highlight the significance of this testing capability, noting that few facilities worldwide can replicate such complex interactions between data centres and power grids with high controllability. The successful demonstration of the AI UPS’s ability to manage fast, high-capacity surges in power demand could pave the way for smoother integration of future data centres into the grid. By meeting increasingly stringent grid connection requirements, this technology has the potential to accelerate the deployment of new data centres while minimising their impact on surrounding communities and critical infrastructure. Looking ahead, the AI UPS will remain at NLR’s Flatirons Campus for ongoing evaluation, with plans to explore its response to a wider range of grid disturbances, including faults and extreme weather events. The collaboration between ON.energy and NLR represents a promising step towards creating more grid-friendly data centres, which are essential for supporting the growing digital economy without compromising power system stability. If successful, this approach could serve as a model for utilities and data centre operators worldwide seeking to balance rapid technological growth with sustainable energy management.