Power is critical, and digital uptime is non-negotiable. Against this backdrop, data centers are under increasing pressure to secure rapidly deployable power solutions that remain resilient – often beyond the limits of the traditional grid.

With this in mind, behind-the-meter (BTM) generation is quickly moving from a contingency option to a strategic necessity.

According to Thomas Seeber, managing director of data center power solutions at Innio Group, high-speed gas generators are emerging as an attractive answer – increasingly considered a viable solution – marking an important development in the evolution of how critical power is planned, delivered, and scaled.

Behind-the-meter

BTM power, where electricity is generated directly on the facility operator’s side of the utility, rather than on the public grid, has become a region-specific constraint. Today, the ability to rely on the grid varies quite dramatically by geography, even becoming a bottleneck in many places.

In this way, BTM is becoming a determining factor in whether new data center developments can move forward at all. By generating power on site and operating independently of grid timelines, BTM solutions enable projects to move forward without multi-year delays for new grid connections.

“BTM solutions help operators reliably forecast power demand. They are scalable, so capacity doesn’t need to be delivered all at once. And without waiting for grid updates, there is no dependency on others – operators retain full control over their power supply,” says Seeber.

With AI and high-density computing reshaping power demand curves, data centers are scaling at a pace the grid simply cannot match. At the same time, infrastructure upgrades lag years behind demand, making speed the number one pain point for customers.

The faster power can be deployed, the faster data center capacity can be monetized. Resilience follows closely, as even where grid connections do exist, reliability is becoming less predictable as more large energy users place additional strain on networks.

Sustainability is the third critical consideration. As emissions targets tighten globally, BTM solutions must align with long-term decarbonization pathways. As Seeber explains:

“If you go with a BTM solution and there is no grid connection, it needs to fulfill sustainability goals. Low-carbon fuel solutions, like natural gas, clearly support those objectives when compared to conventional diesel solutions.”

Gas generators

Historically, engines and generators have been deployed mainly as backup power solutions – standing by for rare grid outages rather than operating as part of the day-to-day power strategy. That role is now evolving, and as Seeber points out, gas generators are increasingly being used in data centers.

Gas-based systems are well-suited to data center environments because they can deliver continuous, high-density power with fast start-up and high reliability.

When deployed as BTM solutions, they must also be dispatchable, flexible, and responsive – but unlike traditional backup systems, they are designed to run continuously rather than intermittently.

“Jenbacher gas generators are particularly well-suited for these applications because of their fast start and load-change behavior, which allows them to handle high load fluctuations,” says Seeber, adding:

“They are designed for excellent part-load performance, because a data center is rarely fully utilized at all times and typically operates at 50-70 percent of rated capacity.”

Moreover, while traditional backup generation typically relies on diesel, gas generators offer a lower-emissions alternative that aligns more closely with the tightening sustainability requirements without compromising performance.

Seeber points to their advantages in challenging operating environments: hot climates like Texas or the Middle East, where ambient temperatures can exceed 100°F (40°C). Under these conditions, gas generators can operate without de-rating or efficiency loss.

“They’re not just a backup plan anymore. They can serve as a core element of the power architecture – as a primary power strategy – particularly in regions where the grid lags behind demand,” he says.

A perfect fit

High-speed gas generators sit naturally within hybrid power approaches. A modern data center needs renewables to meet sustainability goals, battery storage to contain excess renewable generation, and engines to provide stability and dispatchability when intermittent sources fall short.

As Seeber explains, Jenbacher engines are purposefully designed to integrate into these hybrid ecosystems. Their fast ramp-up rate allows them to respond quickly to sudden load changes, enabling more seamless coordination with renewables and energy storage systems.

“They can run in parallel with the grid when a connection is available, or in fully islanded mode as part of a standalone microgrid. They also work efficiently across a wide load range – very important because data centers scale gradually. A modular system must be able to handle each step of that growth until full build-out is achieved.”

Hydrogen has become a central conversation in the journey to decarbonization over the past couple of years, commonly positioned as an interesting option for hybrid renewable power. Yet, the viability of its infrastructure to deliver that hydrogen to the required location is seemingly limited:

“Over the last year, industry experts have observed that the hydrogen infrastructure will not be built out at the scale originally expected. This observation aligns with the slow progress of electricity grid upgrades, which are not advancing as quickly as many stakeholders anticipated.”

That said, high-quality gas engines can already operate on hydrogen blends today. For risk-averse data center operators, this flexibility in fuel is key. Built-in redundancy, enabled by the ability to switch or blend fuels, adds resilience now while maintaining the potential for deeper decarbonization over time.

Keeping ahead vs keeping up

To some, on-site power generation has been viewed as a temporary workaround until the grid eventually catches up. But as time has progressed, that assumption is becoming harder to sustain. In many regions, the grid upgrades required to support new data center capacity remain five, ten, or even more years away. Seeber notes:

“Ten years could be more than the life cycle of a data center. This needs to be a strategic choice. If you wait ten years, the temporary solution may simply become the reality.”

This shift is prompting a broader rethink of the grid’s role altogether. With AI data centers placing unprecedented demand on public infrastructure, relying on the grid to supply 100 percent of power may no longer be the most resilient long-term strategy. Instead, the grid may serve as the supporting factor to on-site generation solutions.

Predicting the future remains difficult in an industry evolving at such speed. But what is clear is that data centers cannot continue to wait for the grid to catch up. Power strategies are no longer designed to keep up with the grid, but to keep ahead of it.

Watch the full DCD>Talks episode here.