“It takes all sources of energy generation to support this demand.” 

The rise of artificial intelligence and cloud computing is driving an unprecedented demand for power. 

“Just a few years ago, a 100-megawatt data center was large,” said Chad Burk, senior vice president of power systems sales for Siemens Energy. “Now, 1,000-megawatt facilities are not uncommon.”

An “average” AI prompt may take as much as 10 times more energy than a web search. In 2023, data centers consumed about 4% of U.S. electricity, but the U.S. Department of Energy expects this figure to more than double to 9% by 2030.

This rapid growth is outpacing the power grid’s capacity. “In some cases, wait times to enter the interconnection queue exceed five years,” said Andreas Lange, head of project development and investment for Siemens Energy North America. “That’s leading to a shift toward energy-first siting strategies — building data centers away from urban areas, where power infrastructure can be developed more quickly.” As a result, there's a growing move toward on-site, hybrid power generation.  ​

Data Centers: Keeping You Connected Requires Unprecedented Power

Partnerships Driving Innovation

Because no single company can meet the data center energy challenges alone, Siemens Energy is building partnerships across industries. 

“We look to partners to bring new and exciting things to market with us,” Burk said.

The company recently announced a partnership with intelligent power management company Eaton to fast-track data center construction with reliable, grid-independent energy. The collaboration enables simultaneous construction of data centers and their on-site power generation, cutting time-to-market by up to two years. The standard 500-megawatt configuration for Siemens Energy features efficient SGT-800 gas turbines and battery backup. The reliable and redundant package eliminates the need for diesel generators and reduces carbon dioxide emissions by about half.

The company also works with NVIDIA, a global leader in graphics processing technology for gaming, AI, and data center applications, on digital twins of the power grid. These are virtual models that simulate power flow and optimize output in real-time. Siemens Energy and NVIDIA are also co-developing autonomous power plants, which can make operational decisions with minimal human input, improving efficiency and safety while addressing workforce shortages and meeting decarbonization goals.

The Shift Toward Hybrid Power

Siemens Energy is collaborating with “hyperscalers” — the biggest tech firms in the U.S. — to develop hybrid microgrid power systems that combine on-site gas turbines, renewable energy and battery storage to power data centers until grid connection becomes available. This is referred to as “behind-the-meter” power. 

“On-site microgrids enable the stabilization of local energy supply through baseload generation while facilitating the integration of renewable sources,” said Lange. “This makes them well-suited for large data centers expanding into more remote areas.” 

Because hyperscalers rarely want to own power plants, developers supported with Siemens Energy technology are stepping in with dedicated or co-located generation solutions — providing 24/7 on-site power that lowers energy costs and boosts reliability. 

Gas turbines remain the fastest path to reliable bulk power. “The increase in demand for large gas turbines has skyrocketed,” said Burk. He estimates recent sales are at least triple those of any time in the past 25 years. 

The company’s gas turbine platforms are engineered for fuel flexibility, allowing seamless switching from natural gas to low-carbon fuels such as hydrogen blends as markets and regulations evolve. 

-Chad Burk, senior vice president of power systems sales for Siemens Energy

A Role for All Parties in Easing the Energy Crunch

Siemens Energy is investing heavily in supply chains to accelerate the infrastructure needed to support data center load growth. This includes building a large new power transformer factory in North Carolina. Large power transformers are a critical technology needed to transmit power from the grid to data centers. Manufacturing them in the U.S. will enhance energy security, reliability and stability. Utilities are investing billions to expand grid capacity. Policy makers can help by streamlining permitting processes.

“Data centers are at the heart of society’s energy transformation,” said Burk. “They need reliable power now, but the systems we build today must also support a more sustainable, resilient grid for the future.” 

by Joy Drohan

Siemens Energy is leading efforts to deliver reliable and sustainable energy solutions for U.S. data centers

Balancing Speed, Reliability and Sustainability

The technology sector demands speed, reliability and a clear path toward sustainability. To meet these evolving needs, Siemens Energy offers a comprehensive portfolio that integrates gas turbines, energy storage, renewables and emerging technologies such as small modular reactors (SMRs).

In the near term, the focus is on delivering energy quickly and cost-effectively, primarily through Siemens Energy’s advanced gas turbine solutions, often paired with energy storage systems. Looking ahead, SMRs present a promising option for compact, emissions-free baseload power, making them an attractive component of future data center energy strategies. Siemens Energy is actively collaborating with nuclear developers to pair its steam turbines with next-generation reactors.

“It takes all sources of energy generation to support this demand,” said Burk.

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