Yann Fromont, deputy president of T&D Europe, outlined the core challenge during the event in Brussels: while power generation has increased, the primary issue lies in electrification and grid investment.
“We have enough power generation,” he said, referencing the growth of renewables and nuclear energy in Europe. “The issue we are facing is return on investment. We are investing in power generation, but there's not enough people paying for it. Electrification of homes, buildings — it's not happening at the right place.”
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Data centres, Fromont noted, could be instrumental in addressing this imbalance by bringing a return on investment to the sector. However, their potential remains underutilised due to rigid operational models and a lack of incentives to integrate into demand response programs.
François Sterin, chief operating officer at Data4, expanded on why data centres have historically been limited in their ability to provide flexibility to the grid.
“End users expect super-stable operations,” he said. “Any participation in demand response programmes poses an operational risk such as potential outages, reputation concerns, and SLA violations.”
He further pointed to financial and technical challenges: “These programmes require energy management teams to operate in standby mode with no clear priority for compensation. Plus, grid programs differ across countries, making them complex to navigate.”
Despite these obstacles, Sterin acknowledged a shifting landscape. "These limitations are coming back into focus as data centres look at different strategies to accelerate deployments," he added.
With data centres already housing substantial backup power infrastructure, like generators and uninterruptible power supplies (UPS), the panel discussed whether these assets could be leveraged to support grid stability.
Chad McCarthy, CTO and co-founder at nLighten, outlined his company’s exploration of alternative backup power solutions.
“We've been working on this since 2022 in Germany, using gas generators instead of diesel due to lower emissions and better pivoting potential,” he said. “We're also seeing hydrogen-compatible gas generation, but affordability remains a key challenge.”
Chris Pennington, director of energy and sustainability at Iron Mountain Data Centres, highlighted a project in the US designed to enhance grid services through battery storage.
“In New Jersey, we’re constructing a 12 MW grid-supported battery at a 13 MW data centre,” he explained. “Rather than relying on diesel generators or modifying cooling loads, we’re using a dedicated energy storage solution. By collaborating with third-party experts, we can optimise how and when we engage with the grid. But the right solution in one market doesn’t necessarily work in another — it’s about context.”
The AI factor
The soaring rise of AI workloads is adding new dimensions to the conversation.
As AI models demand intensive computing power for both training and running inference, the technology is impacting data centre’s once-coveted role as being a dream customer for power provides.
“In one country with 80% renewable energy, a grid operator told me they actually don’t like our predictable baseload anymore,” Sterin shared. “For the first time, we’re competing with industries that are more flexible than us.”
AI training presents a unique opportunity, he continued, referencing a recent Duke University study that found AI workloads could be curtailed by 25% for brief periods without significant operational impact.
“This could unlock 75 MW of additional capacity—enough to power a substantial new data centre project. The challenge is integrating this into existing frameworks.”
Pennington was among the panellists more sceptical of the flexibility benefits of AI workloads.
“Yes, AI training is interruptible to a degree, but companies investing billions in hardware will want to maximise its use,” he said. “That’s why energy storage remains the more practical way to create grid flexibility.”
Beyond AI’s impact, Sterin called for innovation in energy management at the facility level.
“Today, we’re essentially just ‘dumb users’ of electricity,” he admitted. “But to be part of the solution, we need new systems that enable seamless switching between power sources, better integration with grid programs, and smarter deployment of backup assets.”
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