Data centers requiring nearly 100GW of additional power capacity will be added to the market by 2030. As infrastructure races to scale and evolve so it can power AI and the digital economy, delivering stable and reliable electricity is becoming a far greater challenge.

AI workloads and energy-intensive GPUs are driving unprecedented electricity demand, with hyperscale campuses now drawing hundreds of megawatts, roughly equivalent to the power usage of a small city of around 300,000 people.

At the same time, the grids supporting these facilities are undergoing fundamental change. As wind and solar replace conventional power generation, networks are losing the natural inertia and fault strength that historically maintained stable voltage. The result is a growing challenge: how to address surging demand through a less stable grid?

In trying to find an answer to this challenge, data center operators are rethinking how they secure reliable power. Once confined to transmission networks, synchronous condensers are now being deployed at data center grid connection points to strengthen local networks, enable grid access, and optimize microgrid performance, making them an increasingly critical enabler of reliable hyperscale expansion.

Data centers are becoming grid-scale loads

Global electricity consumption from data centers is projected to rise sharply this decade as AI and cloud adoption accelerate. New hyperscale developments frequently exceed 250+ megawatts, and multi-campus clusters are pushing demand even higher. These facilities operate less like traditional commercial facilities and behave more like major industrial installations connected directly to the transmission network.

At the same time, AI-driven computing can introduce rapid variations in load as clusters of GPUs ramp up and down during training and inference workloads. These fluctuations can affect voltage stability and reduce fault strength in local grids.

When combined with the declining inertia of renewable-heavy grids, these dynamics create a new challenge for data center operators: how to maintain stable and predictable power conditions for critical digital infrastructure?

Moving beyond traditional resilience strategies

Historically, data center operators have invested heavily in uninterruptible power supply (UPS) systems, multiple grid connections, and backup diesel or gas generation. These technologies are essential for maintaining uptime during grid failures, but they are designed primarily to respond to disruptions rather than prevent instability in the first place.

As power systems become more dynamic, operators are increasingly looking beyond these traditional layers of protection, and one technology gaining renewed attention in this context is the synchronous condenser.

Synchronous condensers have long been used in transmission networks to stabilize electricity systems. They provide instantaneous reactive power, mechanical inertia, and strong fault current capability, which are all essential characteristics for maintaining voltage stability and reliable system protection.

Today, these systems are increasingly being deployed at data center grid connection points.

At ABB, we are seeing rising demand from hyperscale operators and utilities to integrate synchronous condenser systems as foundational infrastructure for resilient data center expansion.

Enabling connection and microgrid performance

Synchronous condensers are not only resilience enhancers, but they can also act as connection enablers for large data center developments.

Fast-varying hyperscale loads can destabilize voltage, weaken fault levels, and complicate protection coordination within surrounding networks. In some regions, this can make synchronous condensers a prerequisite for grid connection approval.

By delivering instantaneous reactive power and rotational inertia, synchronous condensers stabilize the grid at the point of connection and strengthen the surrounding system’s ability to absorb large load variations. Their high fault current capability also improves protection stability, ensuring that faults can be detected and cleared reliably.

Additionally, synchronous condensers enhance data center microgrid performance by absorbing rapid load changes, strengthening protection stability, reducing generator stress, and mitigating harmonic risks. These systems deliver improved power quality and operational resilience for dynamic computing environments.

Proven technology and shared responsibility for a changing energy system

One of the advantages of synchronous condensers is that they are not experimental technology; they represent a proven, mature solution that has long been deployed across transmission networks to stabilize renewable-heavy grids.

As hyperscale data centers grow into influential participants in the electricity system, responsibility for grid reliability is shifting from a utility-led model to a shared one, and synchronous condensers are purpose-built for exactly this transition.

By integrating synchronous condensers in their power systems, data center operators can secure their own uptime while actively contributing to voltage control and system strength to the wider grid, supporting renewable integration and broader network resilience.