AI infrastructure: The utility’s role in scalable, reliable data center power

Securing clean, reliable and sustainable power at scale has become one of the most urgent and complex challenges facing the data center industry. Between 2015 and 2019, data center workloads tripled. During that time, energy efficiency initiatives — including improved resource management, advanced cooling technologies and automation — helped balance the growing demand. However, those efforts alone won’t suffice as artificial intelligence (AI) applications dramatically increase power requirements in the coming years.

Experts project that data center power demand will surge 160% by 2030, more than doubling the sector’s current electricity consumption. This immense growth will be driven mainly by AI workloads, which require extraordinary computational power and massive amounts of electricity.

To better understand how the industry is responding to the evolving power landscape, Bloom Energy surveyed approximately 100 data center leaders, including hyperscalers, colocation developers and GPU service providers. Their insights reveal a significant shift in priorities: access to reliable power is now their primary concern when it comes to site selection.

These insights are captured in Bloom Energy’s 2025 Data Center Power Report, which highlights five key trends reshaping how data centers plan, build and power their operations.

Trend 1: Power availability unseats fiber as the top factor in site selection.

In 2024, proximity to high-speed fiber optic networks — essential for delivering the low-latency, high-throughput connections modern applications demand — was the leading site selection priority. This year, however, access to power eclipsed all other factors. A striking 84% of respondents ranked power among their top three considerations, far ahead of proximity to customers, network connectivity, local regulations or weather risks.

The shift is driven by a simple reality: sites with immediate or guaranteed access to scalable power enable developers to bring AI infrastructure online more quickly. In competitive markets where power scarcity creates bottlenecks, the ability to secure power quickly offers a significant competitive advantage.

Trend 2: Data center developers and utilities aren’t on the same page when it comes to power availability timelines.

The survey uncovered a notable misalignment between data center developers and utilities regarding power availability timelines. In key markets, there can be a one- to two-year gap between developers’ expectations for power delivery and when utilities can realistically provide the necessary capacity. This disconnect creates friction in a market where time to power is critical.

Utilities are increasingly accelerating time to power with onsite power generation solutions, such as fuel cells. Fuel cells allow utilities to position themselves as strategic partners for data center operators by quickly providing clean, resilient electricity, without impacting affordability for other ratepayers. For example, American Electric Power (AEP) is partnering with Bloom Energy to deploy fuel cells to meet the immediate power needs of Amazon Web Services (AWS) and Cologix data centers in Central Ohio.

“These onsite solutions enable data centers to begin operations quickly while utilities work to build the next generation of grid infrastructure,” said Natalie Sunderland, chief marketing officer at Bloom Energy.

Trend 3: Power-intensive AI chips will drive the development of mega-scale data centers.

The size and power demands of data centers are growing exponentially to keep pace with the increasing complexity of AI workloads. A few years ago, 30 MW data centers were the norm. Today, a single data center typically requires 200 MW — one-fifth the capacity of a typical nuclear power plant — and that number is climbing as data centers grow larger and more complex.

For instance, Nvidia’s latest rack-scale system may require up to 120 kW each, so the power demands of a fully populated data center would be enormous. Industry leaders anticipate median data center size will reach between 250 MW and 300 MW by 2030 and between 350 MW and 400 MW by 2035. This explosive growth puts unprecedented pressure on energy infrastructure and grid capacity.

Trend 4: Data center developers are increasingly concerned about grid availability and looking to establish their own generation capacity.

Given increasing worries about grid availability, more data center developers are exploring onsite power generation. Survey results show:

• 38% of data centers expect to adopt onsite power generation by 2030, with that number rising to nearly 50% by 2035.
• 27% of data centers are projected to rely entirely on onsite generation for their primary power by 2030 — a dramatic increase from just 1% a year ago.

This trend highlights the need for reliable, scalable onsite power solutions. Industry leaders like Equinix are already embracing this shift, with Bloom Energy’s fuel cell systems providing more than 100 MW of electricity across Equinix’s U.S. data centers.

Trend 5: Reliability, cost, and sustainability continue to drive onsite power architecture decisions.

When selecting onsite power solutions, survey respondents identified reliability and cost as their top priorities, along with meeting sustainability goals. Fuel cells have emerged as a leading choice because they effectively balance these requirements.

Although fuel cells may have higher upfront capital costs, their operational advantages, particularly in terms of fuel efficiency, offset those initial expenses over time. When considering the total cost of ownership, including capital, operating, and environmental compliance costs, fuel cells become highly competitive. Moreover, they match or exceed the reliability of traditional onsite power solutions.

Additionally, their cleaner emissions profile accelerates permitting and deployment. Solid oxide fuel cells (SOFCs) generate electricity through a combustion-free, high-temperature electrochemical process, producing no nitrogen oxides (NOx) and sulfur dioxide (SO2), even when operating on natural gas. This makes them ideal for data centers in regions with strict air quality regulations. Additionally, fuel cells require no additional water during normal operation, an important advantage in drought-prone areas where water permits can be difficult to obtain.

“Once the cost-effectiveness of fuel cells is understood, developers find that these systems check all the boxes: fast time to power, high reliability, and compliance with increasingly stringent environmental standards,” Sunderland said.

Fuel Cells: Powering the Future of Data Centers

For onsite power generation at the scale required by modern data centers, few options are cost-competitive. Nuclear power shows promise, but small modular reactors (SMRs) are still in development, and conventional facilities have long lead times that are incompatible with the rapid deployment of AI infrastructure. Gas turbines face similarly long timelines, while reciprocating engines such as diesel generators, though quick to install, often fail to meet environmental standards.

Fuel cells stand out as a uniquely effective solution. Bloom Energy’s SOFC Energy Server® power systems can be deployed behind or in front of the meter in various configurations and contracting models. With over 1.5 GW of installed capacity, leveraging over $6 billion in project financing, Bloom’s modular architecture enables rapid, scalable deployment with proven reliability and efficiency.

“In today’s environment, fuel cells are gaining traction because they combine scalability, reliability and high performance,” Sunderland said. “Most importantly, they are a relatively cost-effective solution, making them an ideal choice for utilities and data centers alike.”

To learn more, download Bloom Energy’s 2025 Data Center Power Report or contact Bloom Energy.