When Bob Downing, VP of sales for energy solutions at AVK, began his career, the data center industry was a far cry from what it is today. Reflecting on his start as an apprentice in uninterruptible power supplies (UPS), Downing recalls a marked lack of modern technology, with typical applications focused on military, government, and banking.

"These leviathans now serve the hyperscalers we recognize today. As the market has expanded and technology processing demands have grown, data centers have come online in unprecedented ways, evolving alongside the sustainability market.

"It's not just about being told to be sustainable; it's a constant evolution of education, learning from peers, and even inspiration from my family,” he explains.

What certainly stands out is the industry’s progress in delivering innovative and sustainable microgrid energy solutions – an achievement Downing attributes to the dedication and expertise of his team.

The tradeoff between sustainability and resilience

“When I started, there was no focus on sustainability – it was all about power and resilience,” Downing reflects. “Now it’s clear we need to develop and educate ourselves about sustainability. But sustainability is a term that's thrown around quite liberally. You need a blend of strategies and technologies to achieve it.”

Downing emphasizes that striking a balance between sustainability and resilience is key – while there are means to become more sustainable, they must also be practical and feasible, with clear commercial incentives for clients to adopt them.

The microgrid: A misunderstood concept

According to Downing, microgrids are often mistakenly associated with less desirable peaker plants. While both can act as energy sources during high demand, the key differences make modern microgrids a more appealing and versatile option.

Whereas peaker plants connect to the grid and export energy during periods of high (or, peak) demand, typically powered by fossil fuels like natural gas, a microgrid is a localized collection of energy sources that can operate either independently or in conjunction with the main electricity grid. Therefore, while microgrids can serve a similar role to peaker plants by providing power during peak demand, they can be designed to offer localized energy generation using a more diverse and sustainable energy mix.

Downing elaborates on the microgrid types AVK specializes in, differentiating them by introducing the term “energy centers,” which handle significantly larger power requirements:

“For a data center, you might have 340MW data halls requiring 120MW of power. To me, that elevates the concept from a microgrid to an energy center. Effectively, an energy center operates as a power plant.

"While the term ‘microgrid’ is suitable when discussing peaking plants supplementing energy, energy centers go beyond that. These are systems designed to deliver consistent, reliable power – data centers cannot operate on intermittent energy streams.”

AVK’s journey with microgrids

Downing emphasizes that AVK is more than just an installer, operator, owner, or designer of energy centers and microgrids, and that what truly sets AVK apart is its role as a trusted partner guiding clients through every step of the journey:

“We assist with the design, help navigate the planning and emissions requirements, and work to incorporate sustainable energy into the mix. For instance, if you have an energy center that’s entirely gas-powered, we aim to introduce solar and wind elements to create a more balanced, sustainable blend of energy.”

One-size-doesn’t-fit-all

When discussing AVK’s portfolio of products and partnerships, Downing’s philosophy is that one size doesn’t fit all:

“We're agnostic with regard to technology. When a client contacts us, we don't insist on using a specific system just because it's in our portfolio. Instead, we assess what the client needs and then decide the best technology to meet those requirements.”

To his point, Downing uses AVK’s partnership with MTU Rolls-Royce, one of the leading players in the energy solutions space, as an example.

Specifically, AVK uses Rolls-Royce platforms with high-speed engines for microgrids or standby energy centers. While these systems excel in certain applications, their operation can lead to maintenance challenges over time.

“For true energy centers – those designed to run continuously, 8,760 hours a year – it might be better to consider medium-speed engines. These engines, which turn slower and deliver higher power output, experience less wear and tear over time.”

These medium-speed solutions, sourced from Wärtsilä in Finland, are dual-fuel systems, supporting gas, HVO, and hydrogen, with the flexibility to enable fuel blending.

While fully zero-emission solutions are still on the horizon, engines capable of operating on hydrogen as soon as supply networks are ready represent a practical step forward.

Key drivers for transitioning energy generation from the grid to localized alternatives

When considering the implementation of a microgrid, energy center, or peaking plant, several critical questions arise: What is the driver? Why is this necessary? According to Downing, these are not decisions made impulsively, as energy centers are designed to address specific challenges and needs:

“The primary driver is often a lack of grid connection – the capacity is not available in the network. For example, if a client needs a high-power supply, such as 120MW, but the grid can only provide 20MW, an energy center can bridge that gap while waiting for additional grid capacity,” he explains.

“Secondly, we're moving towards more sustainable renewable energy, which is fantastic and where we should be going, but we've got to remember it's stepping stones. Renewable energy alone isn’t resilient – it’s intermittent. You may need an energy center to store and harness energy, and then activate generation when renewables aren’t available. It's about achieving the right blend.”

“Third, there’s the commercial aspect. Clients need a financial incentive. When grid electricity is more expensive, they can rely on their energy center, and when prices drop, the energy center can export to the grid for commercial revenue.”

“Finally, resiliency is key. You need that security that if there is a major grid problem, that energy center can run in island mode, disconnecting from the grid to supply continuous power. And then again, when paired with a blend of renewables, it's an even more secure system.”

These drivers reflect the needs and priorities of data center owners or operators, and it would be negligent to have a conversation around the benefits of transferring grid energy without pausing to consider the community that grid source impacts. Luckily, Downing underscores that whether managing a 100MW, 200MW, or 400MW facility, governance and accountability should be at the core of its energy strategy:

“Simply connecting a data center to the grid and offsetting emissions by purchasing carbon credits may look good on paper, but it lacks true accountability,” Downing points out.

“A dedicated energy center allows for direct accountability and transparent reporting of emissions and their energy mix. This enables the data center to communicate clearly with residents, the community, and the government how and where they maximize sustainable energy, what sources they rely on if sustainable energy is unavailable, and the carbon capture technologies implemented to further reduce or eliminate emissions.”

As Downing states, the ultimate goal, or nirvana, is integrating data centers into the community ecosystem. For example, the byproduct heat produced from running engines or turbines in the energy center could be harnessed to provide district heating for local communities, offering both environmental and societal benefits.

A multidisciplinary approach to service

With a well-considered mission and value proposition, AVK’s energy center solutions reflect a service that is not just about selling a product – it’s about delivering a comprehensive solution. Now that’s great and all, but who exactly is responsible for bringing this service to life?

Downing breaks down the structure of AVK’s sales and operations team, emphasizing their holistic approach to addressing the complex and ever-evolving challenges of microgrids and energy centers:

“Our sales team includes concept managers and design managers who go beyond the traditional sales role. They work closely with clients to create tailored solutions, starting with concept design. Once we agree on the approach with the client, the project moves on to the dedicated design and operations teams.”

Downing describes the multidisciplinary nature of AVK’s team which brings together experts from diverse backgrounds, including data center and energy storage specialists, medium voltage (MV) consultants, and civil engineers. It is clear that a variety of skills is critical to meeting the demands of sales, design, and operations, as both the size and expertise of the team continue to grow.

“In addition to our in-house team, we partner with independent energy center consultants for due diligence and collaborate with specialists in areas like planning, permitting, and emissions compliance,” Downing adds.

“Back when I started as an apprentice, things were simpler – understanding UPS systems was sufficient. Now, delivering energy solutions requires expertise across a wide range of disciplines, making teamwork and collaboration essential.”

AVK Academy: Building a more sustainable future

Since Downing began his career, initiatives like academies have significantly evolved, helping to bridge the gap between the data center industry and the opportunities available to today’s youth. Young people are now far more aware of the industry, which marks a significant shift from what existed – or didn’t exist – in the past.

“What we can't do is simply drain the talent pool. You can't keep relying on people who have been in the industry for 30 years. So, the Academy has become a way to bring in new talent.”

“AVK Academy focuses on industry knowledge – taking the skills learned at university, higher education, or school, and developing younger people who want to join the industry. It shows them that there's a career path and emphasizes knowledge sharing. Knowledge is power, and it’s essential to pass it on to the next generation. As current staff retire, they take their expertise with them, so we need to fill those gaps.”

The future of AI: Unchartered territory

It is clear to us all that AI is going to be a major driver of energy demand, but we don’t yet fully understand its implications.

For instance, when AI-driven processes experience peak demand, what will the corresponding power needs look like? This uncertainty makes planning and scaling energy solutions both exciting and complex.

“We don’t yet fully understand future power demands, especially with AI. I’ve heard that AI operates in bursts, with sudden spikes in energy needs. While we can design systems to accommodate these bursts, the real challenge is predicting where the power will be used and how,” says Downing.

Looking ahead, Downing explains that AVK’s focus is on hydrogen-ready systems, sustainable fuel integration, and emissions management:

“We closely monitor developments in the aviation and maritime industries, as their shift to sustainable fuels will influence our strategies. Small Modular Reactors (SMRs) show promise but are likely 10-15 years away due to technological and workforce challenges. Carbon capture is another critical area, though it needs substantial energy and viable use cases for the captured carbon.”

In the meantime, AVK will continue collaborating with partners to track the development of next-generation fuel systems. It is evident that these technologies are on their way, but it will take time for them to become market-ready and widely viable.

For more information, visit AVK’s microgrid and prime solutions page here.