industrial worker stands at an large electrical panel evaluating data center power demands
Planet

From redundancy to resilience:
rethinking power for a data-driven future

The energy challenge we can’t ignore.

Energy demand is rising at a rapid pace. In fact, by 2030, we may need to double – or even triple total data centre capacity in the U.S. As data centres, electric vehicles, robotics and AI continue to scale, the question isn’t how we keep up, but how can we get ahead because our current trajectory simply won’t be enough to power our current projected future.

It’s never been a better time to explore bold, sustainable and scalable solutions that can best support future needs of data centres, energy providers, and our planet too.

“For nearly a century, we've developed infrastructure based on the assumption that centralized power generation – often miles away – could reliably support mission-critical facilities through a 100- to 200-foot extension cord. But data centres are redefining that model. If we’re truly building mission-critical infrastructure, we can no longer accept that the most vulnerable point is the power line itself. The future demands that we co-locate power generation directly with compute – building energy and data infrastructure together, not apart. This shift isn’t just about resilience, it’s about sustainability, optionality, and long-term viability. Once the grid can’t supply all that’s needed – and that moment is coming – sites must be able to self-generate or diversify their power on-site.” Howard Berry, Principal, Director, Data Center Solutions

In short? Redundancy, resilience, and innovation are no longer optional – they're essential.

The power gap is real

As the graph below shows, compared to previous decades, our current energy usage is staggering – and only continuing to climb.

https://www.eia.gov/energyexplained/electricity/electricity-in-the-us-generation-capacity-and-sales.php

While capacity to support this growth is improving, it’s still not at a fast enough rate to meet the demands of an increasingly digital-first world. So, what do we do? What conversations should we be having now to help shape a smarter energy future? We need options, meaningful industry transformations, and better paths to more cost-effective, efficient and sustainable energy. In other words, we need a few ideas with powerful potential.

Power plays: ideas worth exploring

Here are a few concepts we think are worth exploring further to help find critical solutions to existing challenges.

1.

A national energy infrastructure initiative

Think of it like the 21st-century version of the Interstate Highway System – only, this time, for energy. A federally driven project like this could improve generation, transmission and access across the country, ensuring that power flows everywhere it’s needed most.

2.

Deregulating the energy sector

Could loosening federal regulations unlock innovation? In states like Texas, deregulated markets have already spurred needed competition and creativity. A broader shift could empower more players to enter the space and accelerate progress.

3.

Tapping into curtailment

In some regions, like Texas, renewable energy is generated but left unused due to lack of infrastructure. Aligning data centre development with these high-curtailment zones could turn wasted energy into opportunity.

4.

Reducing demand through efficiency

Individual efficiency gains could unlock access at an industrial scale. Consider this: if residential energy use drops – thanks to solar adoption or smart home tech – utilities could redirect that capacity to commercial users. Alternatively, focusing on technology innovations that reduce the amount of energy necessary to achieve current outputs could also be a great path forward. After all, if using energy was 50% more efficient, then energy availability theoretically doubles, bringing with it opportunity for conversations that can move beyond the need for energy generation toward broader impacts and utilization.

5.

Exploring alternative minerals and materials

Overreliance on diesel, lithium, or any single source creates risk. Diversifying materials and energy sources – especially toward renewables – can reduce costs, improve sustainability, and enhance resilience. The table below compares costs, emissions and the overall impact of various energy sources.

6.

Evolving our cities around the need for smarter energy

What if we built better energy solutions right where they’re needed most? Regional energy clusters – where generation and demand are co-located – could reduce transmission costs and improve efficiency. Smarter city planning, with energy at the core, could be one of the most powerful tools we have. How do we begin? Maybe through developing various microgrids into a node network, incorporating behind the meter solutions through natural gas, solar, hydrogen, nuclear and other generation technologies.

Comparing energy sources: cost, emissions and impact

Power source CO2 Emissions (g/kWh) Air Pollution Reliability Cost ($/MWh) Land Use Water Use Waste / Byproducts
Coal 820 High Very high 60 – 120 Medium High Ash, mercury, CO2
Clean coal + CCS 200 – 400 (if CCS works) Medium-high High 100 – 150+ Medium Very high CO2 storage, toxic sludge
Natural gas (CCGT) 400 – 500 Low Very high 40 – 70 Low Medium CO2
Nuclear ~12 Near zero Very high 90 – 130 Low High Radioactive waste
Hydropower ~24 None Very high 30 – 60 Very high Very high Disrupts ecosystems
Wind ~11 None Intermittent 30 – 60 High None Minimal
Solar PV ~45 None Intermittent 30 – 60 High None Panel waste (20+ years)
Geothermal ~38 Very low High 40 – 100 Low Medium Minimal
Biomass ~230 – 450 Medium High 80 – 120 Medium Medium CO₂, particulates
Diesel / oil 700 – 1,200 Very high Very high 150 – 300 Low Medium CO2, NOx, SO₂

Source: Compiled using AI, ChatGPT. Drawn from many publicly available life cycle assessment studies and comparative power generation analyses, such as the Intergovernmental Panel on Climate Change (IPCC), International Energy Agency (IEA), U.S. Department of Energy (DOE), National Renewable Energy Laboratory (NREL), World Nuclear Association (WNA), and the UNEP and World Bank.

The power of partnership

Solving these challenges will undoubtably require unprecedented collaboration – between public and private sectors, across industries, and even, perhaps, unlikely allies. But, we know, it’s well worth the conversation.

“We’re at a rare inflection point. Unlikely partners – across industries, sectors, and ideologies – have an opportunity to align to build and develop an omnichannel solution that is bigger than any single interest can accomplish. This strategy is centred on a series of shared goals: United States energy independence, investment attractiveness and national security. Total alignment is not required – just a shared sense of urgency and a willingness to collaborate. That’s how we will move toward a more resilient, sustainable future.” Carl Quesinberry, Senior Director, Avison Young Industrial Corporate Services

Regardless of where we start, we know that what we do next matters 

The momentum isn’t slowing. The demand isn’t shrinking. And the stakes couldn’t be higher. It starts with getting the right people in the right rooms to have the right conversations. And it continues with bold action, shared vision, and a willingness to explore every option.

Need help planning your next data center or energy strategy? One that considers both current needs and future opportunities? Let’s partner for a smarter, cleaner and more resilient future – together.

Howard Berry

    • Principal, Director, Data Center Solutions
    • CA License #01795693
    • Data Centers
Contact
Howard Berry

Carl Quesinberry

    • Senior Director, Avison Young Consulting Services
    • Consulting & Advisory
    • Strategic Consulting
Contact
Carl Quesinberry

Howard Huang

    • Market Intelligence Analyst
    • Data Centers
    • Life Sciences
    • Office
    • Market Intelligence
Contact
Howard Huang

Howard Berry

    • Principal, Director, Data Center Solutions
    • CA License #01795693
    • Data Centers
Contact
Howard Berry

Carl Quesinberry

    • Senior Director, Avison Young Consulting Services
    • Consulting & Advisory
    • Strategic Consulting
Contact
Carl Quesinberry

Howard Huang

    • Market Intelligence Analyst
    • Data Centers
    • Life Sciences
    • Office
    • Market Intelligence
Contact
Howard Huang

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