When to colocate data centers with generation - Latitude Media

Brian Janous from Cloverleaf Infrastructure challenges the growing trend of co-locating data centers with onsite power generation in this Catalyst podcast episode.

While data center operators increasingly turn to behind-the-meter generation to bypass grid interconnection delays, Janous argues this approach may be jumping the shark. He contends that alternatives like batteries, grid-enhancing technologies, virtual power plants, and advanced conductors can unlock untapped grid capacity more efficiently. The conversation explores whether 24/7 loads truly need 24/7 power generation, examining the constraints and costs of colocation versus multi-party grid solutions.

• Speed vs. optimization trade-off: Onsite generation offers faster deployment but requires significant overbuilding for redundancy, making it expensive compared to grid alternatives
• Grid capacity misconceptions: Utilities solve for peak demand periods, not 24/7 generation matching, creating opportunities for flexible solutions and demand response programs
• Orchestration challenges: While grid-connected solutions may be more cost-effective and sustainable, they require complex coordination across multiple utilities and stakeholders
• Nuclear skepticism: Both hosts question the logic of onsite nuclear for data centers, citing timeline mismatches and availability concerns despite broader nuclear optimism