A❤️453-word🧡under💛2.5-minute💚read.
An interesting trend is developing in AI and its power-hungry data centers. With data centers, time is of the essence. Yet speed is not historically a strength of the utility industry. That leaves two choices: seek locations outside of the U.S. or build your own power plants.
The “DIY” power plant option is gaining momentum, at least with the investment community. A recent Axios article outlined investors betting that hyperscalers would prefer to build in the U.S., but need a solution to grid connection delays. The article mentioned investments in three companies:
▶ Mainspring Energy
▶ Caban
▶ Scale Microgrids
What exactly do these companies do?
Mainspring Energy builds linear generators that employ a piston-like motion to generate electricity. The company promotes its generator as fuel-flexible (allowing for low CO2 emissions) and highly efficient.
If need be, its generators can run on fossil fuels, but are hydrogen and ammonia-ready. They can also be coupled with renewables and battery storage to run as backup or primary power.
The technology doesn’t require bearings or lubricating oil which minimize maintenance costs. As an ex-field service tech, I appreciate that feature.
Mindspring’s technology allows data centers to build their own 24/7 power while also achieving emission goals.
Caban advertises its technology as “reimaging how we power the planet.” It’s a catchy slogan, but the technology isn’t revolutionary. What’s revolutionary is that the company is applying the SaaS model to power generation. In Caban’s case it’s EaaS – energy as a service.
Caban basically “rents” energy storage systems. Its claim to fame is a battery pack that is meticulously designed, manufactured, and test in the United States. Peel away the marketing hype an it’s a lithium-ion based battery system with a few unique bells and whistles, and some “secret sauce” software that facilitates the “as a service” aspect.
The key to this model is that it requires no upfront capital. Money isn’t much of an issue for major hyperscalers. Still, they might view Caban as a low-risk short-term option. And there may be a market of smaller data center operators.
As its name implies, Scale Microgrids offers a microgrid option also with a $0 down option. The company will build, own, and operate the microgrid for its customers. The one difference with this strategy is that microgrids work in conjunction with a grid connection and can act as a “backup generator” if the grid were to go down.
Mainspring Energy is the most interesting of the three. However, all are worth watching, as is the DIY data center powering approach.
I’d like to see the U.S. be the global leader in AI, and in general, I don’t believe that the utility industry is well equipped to ensure that happens.
#datacenters #microgrids #mainspringenergy #caban #scalemicrogrids #ai
#DIY #Hyperscalers #Energy #Central
