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Data Center News > Blog > Security > The Pros and Cons of Behind-the-Meter Energy for Data Centers
Security

The Pros and Cons of Behind-the-Meter Energy for Data Centers

Last updated: July 15, 2025 9:24 am
Published July 15, 2025
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The Pros and Cons of Behind-the-Meter Energy for Data Centers
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Some knowledge facilities aren’t simply knowledge facilities. They’re additionally energy crops – or one thing near it. That’s the case for knowledge facilities that leverage what are often known as behind-the-meter vitality sources.

By eliminating or lowering the necessity to depend on the ability grid for electrical energy, behind-the-meter vitality can present key advantages associated to sustainability, price, and reliability.

Nevertheless, it additionally has some main potential drawbacks, together with the excessive funding price essential to implement behind-the-meter vitality sources for knowledge facilities.

What Is Behind-the-Meter Power?

Within the context of information facilities, behind-the-meter vitality is an vitality supply that’s devoted to a selected facility.

In different phrases, when an information heart makes use of behind-the-meter vitality, it connects to a close-by energy supply, resembling a geothermal system or photo voltaic farm, constructed to produce vitality simply to that knowledge heart. This permits the ability to supply vitality with out having to connect with the grid, that means the generic community of energy crops and transmission strains that present vitality for many buildings.

Importantly, behind-the-meter vitality doesn’t essentially imply that knowledge facilities are completely disconnected from the grid. Usually, they preserve grid connections as supplemental or backup energy sources. However in contrast to most grid clients, behind-the-meter knowledge facilities even have their very own native energy technology capabilities.

Associated:Energy Availability Now Drives Knowledge Heart Web site Choice

Behind-the-meter data center illustration

Knowledge facilities using behind-the-meter vitality options steadiness important upfront prices in opposition to long-term sustainability and operational reliability. Picture: Alamy.

The Attraction of Behind-the-Meter Power for Knowledge Facilities

When knowledge facilities can provide their very own energy, they acquire a number of advantages which might be particularly beneficial in a world the place knowledge heart vitality use seems to be sharply rising, and through which many knowledge heart operators are involved with sustainability:

  • Decrease danger of disruptions: Knowledge facilities with behind-the-meter vitality could also be much less liable to energy outages, particularly people who consequence from downed transmission strains on the grid.

  • Quicker energy hookups: It could possibly typically take new knowledge facilities months, and even years, to connect with the grid. Behind-the-meter vitality may help services come on-line, at the very least partly, with out ready on grid hookups.

  • Capacity to supply sustainable vitality: When knowledge facilities supply vitality from the grid, there isn’t any method to assure that their energy comes partly or totally from renewables as a result of just about all grids embody a mixture of “clear” and “soiled” vitality sources. However with a renewable behind-the-meter energy supply, an information heart can run on whichever gasoline kind it chooses to make use of when implementing its non-public energy supply.

  • Potential price financial savings: Though behind-the-meter vitality programs could also be pricey to construct and function, they will get monetary savings in the long term, particularly for knowledge facilities situated in areas the place grid vitality is dear or the place grid prices fluctuate.

Associated:Behind-the-Meter Power: Powering Knowledge Facilities for a Sustainable Future

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The Challenges of Behind-the-Meter Knowledge Facilities

Regardless of its advantages, a behind-the-meter vitality technique presents some main challenges for knowledge facilities.

The most important, in lots of instances, is the upfront capital required to construct a non-public vitality system. The prices can range broadly relying on the kind of vitality used and complete system capability. However to take geothermal for example, think about that the price of geothermal energy crops in the US ranges between about $3,000 and $6,000 per kilowatt. Primarily based on the midpoint of that knowledge, $4,500 per kilowatt, a geothermal plant able to powering a 100 MW knowledge heart would price round $450 million – a steep value even within the context of large-scale knowledge heart tasks.

A second problem is that behind-the-meter programs might not be able to producing almost sufficient vitality to energy an information heart on their very own. As an illustration, it takes about 7 acres’ price of photo voltaic panels to generate 1 MW of electrical energy. At that charge, powering a 100 MW facility would require greater than a sq. mile of house. (It will additionally price round $350 million, on condition that photo voltaic farms price within the ballpark of $500,000 per acre.) Knowledge facilities with out that a lot spare land would wish to accept a neighborhood photo voltaic plant that may provide solely a part of their vitality wants and depend on the grid to make up the distinction.

Associated:‘AI Greenferencing’ Mannequin Might Remodel Knowledge Facilities with Wind Energy

A 3rd problem, particularly for knowledge heart operators taken with behind-the-meter options due to their sustainability advantages, is that many renewable vitality sources are solely intermittently obtainable. Photo voltaic and wind solely work when it’s sunny or windy. The remainder of the time, knowledge facilities are caught counting on the grid.

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Does Behind-the-Meter Power Make Sense?

Thus, deciding whether or not it’s price investing in a behind-the-meter vitality answer for an information heart requires cautious analysis of the advantages relative to the drawbacks. Particularly, it’s important to investigate the extent to which the projected advantages shall be totally realized. It’s uncommon for an information heart to have the ability to depend on a behind-the-meter energy supply for all of its vitality wants, the entire time.

In some instances, there could also be extra sensible methods to enhance vitality sustainability and reliability – like investing in additional energy-efficient cooling programs or UPS units (which may hold knowledge facilities working throughout brief grid outages) and mills (which may present backup energy for longer intervals, however with the downside that they normally take a couple of minutes to begin up).

However for knowledge heart operators that need most management over the place their vitality comes from, there’s no substitute for behind-the-meter vitality.



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Contents
What Is Behind-the-Meter Power?The Attraction of Behind-the-Meter Power for Knowledge FacilitiesThe Challenges of Behind-the-Meter Knowledge FacilitiesDoes Behind-the-Meter Power Make Sense?
TAGGED: behindthemeter, Centers, Cons, data, Energy, Pros
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