Control Your Destiny (with BYOG) or Someone Else Will
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The dynamics around securing power for data centers are evolving quickly, and developers are finding project timelines at the mercy of shifting policies and evolving grid constraints. However, for projects that want to secure certainty, new approaches to onsite generation can turn challenge into opportunity, helping projects move forward while supporting the reliability, affordability, and community priorities policymakers increasingly expect.
The wisdom of former GE Chairman and CEO, Jack Welch, rings true for the data center environment today. Welch was known for pushing leaders to anticipate change and act decisively rather than waiting for outside forces to determine their path. Data center developers face this fundamental choice: wait for increasingly constrained power infrastructure and policy clarity to determine their timelines or take a more active role in securing the power their projects require.
Treating new data centers as massive, must-serve loads raises legitimate reliability and cost concerns for the grid and host communities. A bring-your-own-generation (BYOG) approach reduces pressure on the grid by pairing large-load demand with dedicated generation, and it’s the definitive path forward for leading data center developers.
The policy challenge
Driven by rising community concerns, policymakers are demanding greater accountability from data centers for grid reliability, local resources, and ratepayer affordability. Within the past several weeks, we have seen sweeping actions across the country:
- Texas: Governor Abbott recently directed the Public Utility Commission of Texas and ERCOT to conduct a comprehensive audit of all data centers in the interconnection queue. The audit follows a letter outlining directives for data centers to fully fund needed infrastructure to lower residential ratepayer costs, add electric capacity, protect local water resources, and mitigate local community impacts.
- Pennsylvania: Governor Shapiro signed an executive order requiring large loads (>25 MW) to bring new power supply and cover grid costs. Data center fast-track permitting and tax incentives are now tied to meeting previously-announced GRID Requirements which include: transparency and community engagement requirements; workforce and economic development support; ratepayer protections like BYOG and funding required infrastructure upgrades; and mitigation of environmental and community impact, including use of zero-emissions storage or lower-emitting backup generation.
- New York: Governor Hochul signed an executive order placing a temporary moratorium on the development of data centers until state agencies assess the potential impacts of data centers on state energy demand, water use, air quality, impact to disadvantaged communities, and noise levels. In the meantime, the state will develop a Community Investment Framework for data centers to invest in local public schools and services and will address cost allocation and rate design for data center interconnection and infrastructure needs.
- Washington, D.C.: The White House expanded its Ratepayer Protection Pledge to include over 300 organizations. This pledge requires companies to “build, bring, or buy” their own energy. The goal is to ensure existing customers do not subsidize the infrastructure required for data center growth.
The result has been a marked uptick in uncertainty around grid interconnection timelines and service adequacy around the country.
BYOG helps large-load customers overcome grid constraints and accelerate speed to power. ERock’s modular RockBlock™ systems provide scalable, onsite generation that can serve near-term power needs while supporting a path to long-term interconnection.
The BYOG solution
For data center projects looking to control their own destiny amidst regulatory delay, a BYOG strategy is emerging as a “no-regrets” strategic imperative. Even amidst the policy uncertainty, messaging out of Texas, Pennsylvania, New York, and the White House all support the concept of data centers that buy, build, or bring their own generation to cover their demand and give back to the grid to support broader energy affordability and reliability. ERock’s RockBlock™ onsite generation solution puts that concept into action, allowing data centers to align with responsible development practices under a range of scenarios.
ERock supports large loads through three critical phases:
- Bridge power: Our systems act as the primary power source prior to transmission interconnection. This accelerates speed to power for the customer until utility service is ready. It is not permanent off-grid power but rather a transition until grid connectivity is available, either firm on non-firm.
- Flex power: Facilities can shift their load to our onsite assets during capacity shortfalls or reliability concerns. This reduces overall strain on the grid. This also allows load to connect to the grid while increasing utilization of existing infrastructure, helping drive downward pressure on ratepayer costs.
- Backup power: Our onsite generation solutions provide 99.999% reliability as a cleaner alternative to traditional diesel backup.
Additionally, to strengthen relationships with host communities, data centers must deploy technologies that address local externalities like emissions, water use, noise, and visual impact. RockBlock™ systems incorporate several features designed around these considerations:
- Water-free operation: Unlike other thermal generation technologies, ERock’s natural gas reciprocating engines do not use any water.
- Lower emissions: Our generators meet the strict CARB-DG emissions standard. ERock technology reduces NOx and carbon monoxide emissions by 99% compared to Tier 2 diesel.
- Quiet operation: ERock’s proprietary design features built-in noise attenuation to minimize sound impacts, allowing operation alongside facilities like nursing homes and grocery stores in and around residential communities. Coupled with a low-profile design, our systems are out of sight, out of mind.
Control your destiny
Data center developers that secure the right onsite power solutions today can control development timelines, protect project feasibility amidst shifting regulations, and build lasting community trust. BYOG gives developers greater control over when and how projects move forward while creating a path that can adapt as grid conditions and policy requirements evolve.