DATA MANAGEMENT, COMMUNICATIONS & SECURITY Data centre connectivity simplified
Independent Distribution Network Operators (IDNOs) have a vital role to play in energising data centre developments. Dave Swadling, director of customer connection development at Eclipse Power explains how IDNOs are simplifying grid connectivity for hyperscalers and data centre operators
A
s critical building blocks of the digital economy, building and connecting data centres has to keep pace with the explosion in power-intensive workloads being generated
from cloud computing, IoT, machine learning and artificial intelligence. For some time, the expansion of data centres has been subject to a ‘perfect storm’ of converging events that present real challenges to growth – from planning barriers to demands for greater energy efficiency and sustainability. But the overriding issue for hyperscalers and data centre operators is grid capacity. Some 800 gigawatts of energy projects
are currently in the connections queue. Applications made to Distribution Network Operators (DNOs) or the National Energy System operator (NESO) today are being given connection dates that are 10 to 15 years in the future. This delay puts projects – and investment – at risk. When your business plan is centred on having X-number of megawatts (MW) or a volume of data centre capacity set up and running in a certain timeframe, being unable to connect to the grid for a decade is clearly a problem. Data centres are waiting longer than ever for larger power connections, at a time when we’ve effectively topped out the grid in terms of capacity. It’s a perfect storm. There are solutions to overcome these challenges, if you know where to look and who to work with.
Independence unleashes opportunity
Independent Distribution Network Operators (IDNOs) are perfectly equipped to unlock opportunities for data centre operators to connect to the grid. Introduced in 2004 to increase competition in electricity distribution, IDNOs, like DNOs, design, own, operate and maintain electricity networks in the UK. Also, like DNOs, they are licensed by Ofgem. Their independence means that IDNOs are
not restricted to a geographical part of the UK and can operate nationwide. This means they can be more flexible in interpreting the standards set by DNOs, which vary from region to region. Because IDNOs operate in a competitive market, they have to have more of a customer-focus than DNOs. They
can adapt and adjust to market challenges in a way that DNOs aren’t incentivised to do, and suggest innovative ways to simplify the complexities of getting connected to the grid. Naturally, IDNOs with experience of helping data centre customers connect to the grid will understand HV connections. The effective ones will offer additional advantages, like making a capital contribution, value engineering the grid connection and design expertise to match the substation footprint around the needs of a specific data centre site.
That said, often the less technical aspects of power projects have the biggest impact on a project’s viability. Successful IDNOs build strong relationships with stakeholders across the whole power ecosystem; the transmission and service operators, DNOs and National Grid, grid consultants, renewable developers, and more. They typically build a deep understanding of who to deal with among the different organisations, and importantly how to deal with them.
Really effective IDNOs provide the right support and guidance in an open and transparent way. Ultimately, the data centre operator needs to convince investment communities of the value and viability of their project. So, the IDNO needs to distil and
crystalise both the problem and solution in a language that makes it easy for the client to sell internally.
Unlocking the queue
Given the challenges of connecting to the grid, IDNOs like Eclipse can operate independently as ‘power brokers’ to unlock the queue. While there is no single solution to fit all situations, a customer-centric IDNO has the commercial drive to find solutions. IDNOs are ideally suited to finding the best solution and bringing the right people together. That can involve putting the investors together with the people who need to build data centres; the grid experts with the people who have the connections; the landowners who want to do something with their land options; the grid consultants and designers; the renewable generation developers. And bring all of this together to make as many projects viable as possible by taking advantage of what is already in the grid queue.
Essentially, IDNOs find the nuggets that are
already in the queue that are suitable for a data centre project. Many renewables projects in the connections queue are for battery storage. Ofgem, government and NESO forecasts point to the UK needing 200 gigawatts of capacity to support the energy transition. That means only a fraction of the 800 gigawatts in the pipeline will actually connect. Some of these will be looking to switch into data centre opportunities and use their place in the queue as an incentive. Additionally, data centres have large UPS battery facilities that can be used as export capacity to support the grid – essential as more variable renewable energy sources come online. So, the right power-broker in the form of an IDNO can help unblock the connections queue and also increase the penetration of renewable energy in the grid.
Bringing it all together
Data centres will continue to innovate to decarbonise and find new ways to work collaboratively with the grid. IDNOs are a common denominator within the highly complex equation, bringing it all together. It makes sense for data centre operators to have an IDNO inside their camp.
Opening the DNO market up to competition has given the sector a fresher, faster route to solving energy connectivity challenges. The transmission network is crying out for more competition to drive regulatory and industry change. This would enable more data centres and hyperscalers to connect to the network faster and more efficiently. It’s the natural next step that would revolutionise energy in the UK and further enable the digital economy.
26 BUILDING SERVICES & ENVIRONMENTAL ENGINEER SEPTEMBER 2024 Read the latest at:
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