How EPCs and Developers Can Meet the Rapidly Expanding Data Center Sector’s Surging Energy Demands
- 24/12/02
- C&I,Innovation and Advance,Energy Storage,Business of Solar,Industry News
Amidst the post-election uncertainty in the solar sector, some certainties hold steady, particularly the rapidly surging energy demands of the expanding data center sector.
The Solar Energy Industries Association (SEIA) released its Solar Means Business 2024 report, tracking solar photovoltaic (PV) installations that support commercial activities at U.S. facilities, covering systems operating by the end of March 2024. Through Q1 2024, U.S. businesses installed nearly 40 GW of capacity, total corporate storage use exceeded 1.8 GWh, and companies expect 3+ GWh of battery storage to connect over the next five years.
A key takeaway from the report details how data center facilities are setting new benchmarks in energy demand, grid resilience, and sustainability, driven by exponential growth in artificial intelligence (AI) applications, cryptocurrency mining, cloud computing, and edge technologies.
For solar developers and engineering, procurement, and construction (EPC) firms, data centers offer a promising opportunity to position solar + storage solutions as the cornerstone technology for this rapidly growing, energy-hungry sector.
Let’s explore how advancements in PV technology and strategies—particularly n-type TOPCon modules and energy storage bundled in a total solar solution—have emerged that enable developers and EPCs to deliver energy procurement, resilience, and sustainability for the data center industry.
The Energy Challenge and Opportunity in the Rise of Data Centers
The U.S. data center sector is experiencing unprecedented growth, with nearly 24 GW of new data center capacity announced in the first half of 2024, more than the total announced in 2023. These complexes vary widely in size and energy consumption:
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Small centers: 1-5 MW
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Large “Hyperscale” centers: 100 MW
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Average capacity: Around 8 MW and rising
Notably, the rise of AI and machine learning technologies intensifies this energy challenge. AI workloads consume up to 10 times the electricity of standard operations, necessitating resilient and scalable power infrastructure.
This energy consumption means data centers are expected to account for 8% of U.S. electricity consumption by 2030—double its current share. When you factor in the large-scale electrification across the manufacturing and industrial sectors with the rapid growth in data centers, analysts forecast that total electricity demand could jump 20%.
This demand increase is notable since the country’s energy supply has remained flat following a decade of relative stagnation. At the same time, this demand surge coincides with the phasing out of coal-fired power plants, contributing to this potential market imbalance and significantly straining the grid. Black & Veatch’s 2024 Electric Report survey of utilities revealed that 45% of respondents do not have confidence or are not very confident in their forecasting for data center loads.
As data center operators face mounting pressure to ensure reliable energy supplies, manage costs, and achieve ambitious sustainability goals, on-site solar + storage systems can alleviate or even eliminate these challenges.
Why On-Site Solar + Storage Meets the Triple Demand of Data Centers
Three primary demands characterize the energy needs of data centers:
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Price certainty
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Uninterrupted power supply (UPS), and
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Sustainability
Solar + storage systems offer an integrated solution to all three.
Price Certainty: Generating power on-site minimizes exposure to fluctuating grid electricity prices, while battery storage further stabilizes costs by managing peak demand charges and arbitraging energy during high-rate periods.
Uninterrupted Power Supply: In regions prone to grid instability—such as Texas under ERCOT—solar + storage systems ensure data centers maintain operations during blackouts or extreme weather events. When configured into a microgrid, the system allows for seamless transitions between solar, storage, and grid power, delivering high reliability.
Sustainability Goals: Leading tech companies and data center operators are committed to achieving 100% renewable energy. Solar + storage systems play an essential part in achieving these goals by providing data centers with a direct, consistent, and cost-effective renewable energy source, with storage helping ensure that facilities can meet energy demands even when sunlight is unavailable.
Advanced PV Technology for Data Centers: The Case for n-Type TOPCon Modules
As we can see, the proliferation of data centers presents both a challenge and an opportunity for the solar industry. Solar developers and EPCs can position their companies as key partners in powering the digital future by focusing on innovative procurement solutions and high-efficiency PV technology like n-type TOPCon modules and storage solutions to deliver the performance, reliability, and resilience of energy systems that data centers need. In addition to the high efficiency, n-type TOPCon PV modules have emerged as the go-to option for unique advantages against extreme weather conditions and diverse operating environments.
The advantages of 3.2mm tempered glass and backsheet modules against hail, wind, and heat
In regions prone to severe weather events, such as Texas, where heatwaves and hailstorms are common and where data center development is thriving, n-type TOPCon modules with 3.2mm tempered glass and durable backsheet excel.
The tempered glass and backsheet protect against hailstones as large as 65mm in diameter. Additionally, n-type technology maintains high efficiency even in extreme heat, a critical attribute in areas like Texas, where high temperatures can significantly degrade conventional p-type solar panels. The n-type module’s lower temperature coefficient ensures stable and reliable performance, reducing the risk of energy output loss during peak heat.
The advantages of bifacial mono glass modules against cold and snow
In colder and snowier climates, like New England and Minnesota, bifacial monoglass n-type TOPCon modules demonstrate similarly excellent performance. The module’s robust mechanical design is engineered to endure heavy snow loads and prevent structural damage for long-term system reliability. Additionally, snowy ground covering can enhance the albedo effect of bifacial n-type TOPCon modules and reflect more sunlight to boost energy output. For example, Vertex N models deliver up to 85% back-side power gains compared to monofacial panels. Combined with a low-temperature coefficient, n-type modules are ideal for data centers in snowy and high-latitude regions.
The advantages of ultra-high power and efficiency to maximize land usage
Land availability often limits on-site solar + storage system installations for larger data centers with higher energy demands, particularly in high-sunlight areas like California and the Southwest. However, the high efficiency of n-type TOPCon modules maximizes energy yield per unit area. The ultra-high efficiency allows EPCs to optimize system designs, reduce land-use intensity, and improve the economic viability of solar installations for data centers in these regions.
The advantages of long-term durability and resistance to degradation
N-type TOPCon modules are proven for long-term durability and ultra-low degradation. Unlike conventional p-type modules, n-type TOPCon modules exhibit lower rates of potential-induced degradation (PID) and light-induced degradation (LID). This key feature ensures consistent performance over decades, reducing maintenance requirements and enhancing the overall energy output predictability. For data center operators, this level of reliability translates into significant operational savings and greater confidence in their renewable energy investments.
Streamlining Solar EPC Procurement for the Data Center Market
Solar developers and EPCs are uniquely positioned to help data center operators address their urgent energy challenges. However, meeting this sector’s energy-hungry demands will require adopting an innovative procurement strategy that prioritizes efficiency, scalability, and customer value. Bundling n-type TOPCon modules and battery storage within a total solar solution will be the differentiator developers and EPCs need to deliver a cost-effective approach to achieving their data center customer goals.
The TrinaPro total solar solution streamlines procurement of major components—modules, inverters, battery storage, and mounting structures—into a single package that reduces logistical complexities, accelerates project timelines, ensures component compatibility, and optimizes system performance. EPCs can minimize risks associated with supply chain disruptions and misaligned technologies, providing a streamlined pathway to project completion.
On-site solar + storage systems are not merely a response to the challenges of rising energy demand, grid instability, and climate goals — they’re the blueprint for a resilient and sustainable digital future.
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