Importance of Microgrids for Data Centres

As widely documented, datacentres consume 1–1.3% of global electricity demand (240–340 TWh annually), while here in Ireland datacentres account for 26% of energy consumption. With AI-driven workloads, demand is rising sharply, making low-carbon, resilient power solutions essential. Microgrids with batteries and hydrogen fuel cells can help as we tackle this problem. Not only can they be incredibly energy efficient, but they will also help reduce carbon footprint and provide more reliable uptime during grid instability.

These microgrids and on-site energy storage allow data centres to balance renewable energy supply with demand, ensuring resilience, reliability, and sustainability. Batteries provide fast-response backup, while hydrogen fuel cells offer long-duration, low-emission power.

Microgrids

• Definition: A microgrid is a localised energy system that can operate independently or in conjunction with the main grid.

• Benefits:

  • Resilience: Keeps data centres running during grid outages.

  • Flexibility: Integrates multiple energy sources (solar, wind, batteries, fuel cells).

  • Cost control: Reduces exposure to electricity price fluctuations and grid limitations.

• Design features:

  • Scalable to match growing demand.

  • Redundant power and fuel systems

  • Low emissions and noise, making them suitable for urban or sensitive environments.

    
    

On-Site Energy Storage with Batteries

• Lithium-ion batteries: Widely used due to high efficiency, fast response, and declining costs.

• Role in data centres:

  • Provide Uninterruptible Power Supply (UPS) during outages.

  • Smooth out fluctuations in renewable energy generation.

  • Enable peak shaving (reducing demand during high-cost grid periods).

• Limitations:

  • Best for short-duration backup (minutes to a few hours).

  • Require careful thermal management to avoid degradation.

    
    

Hydrogen Fuel Cells

• Emerging technology: Hydrogen fuel cells are being tested as sustainable backup and even primary power sources for data centres.

• Advantages:

  • Zero emissions at point of use (only water and heat as byproducts).

  • Long-duration backup compared to batteries.

  • Scalable for large facilities with high energy demand.

• Challenges:

  • Hydrogen infrastructure is still limited (pipelines, storage, green hydrogen supply).

  • Costs remain higher than traditional diesel generators.

  • Requires safe handling and storage protocols.

• Use cases:

  • Companies like Microsoft and Equinix have piloted hydrogen fuel cells for backup power.

  • National Renewable Energy Laboratory (NREL) has studied their integration into data centres.

    
    

In Conclusion

• Data centres consume 1–1.3% of global electricity demand (240–340 TWh annually).

• With AI-driven workloads, demand is rising sharply, making low-carbon, resilient power solutions essential.

• Microgrids with batteries and hydrogen fuel cells help operators:

  • Reduce carbon footprint.

  • Ensure uptime during grid instability.

  • Transition away from diesel generators toward cleaner alternatives.