Data centers are growing so fast that power grids can’t keep up. In 2023 alone, U.S. data centers used nearly 4.4% of national electricity, that percentage has risen in 2025, and remains on track to double by 2028. As artificial intelligence, cloud computing, and digital infrastructure expand the data center footprint, the race for reliable power is reshaping data center infrastructure strategies.
Amid the surge, hyperscale data centers such as those owned by AWS and Microsoft, are turning to onsite power generation using fuel cells, solar microgrids, modular gas turbines and even small nuclear reactors to guarantee uptime and predictable costs. Onsite power for data centers has evolved from a backup to a central strategy to maximize uptime and ensure operational efficiency, sustainability, and scalability far into the future.
The Pressure to Power Up Faster
Utility grid connections are taking longer than ever. In high-growth regions like Northern Virginia, Texas, and the Pacific Northwest, new data centers face interconnection delays of two to three years or more. Developers can build facilities faster than utilities can deliver power. One solution is to build data centers close to their power generation plant. A more complete solution is to build the power generation on the site of the data center. Onsite power systems using diesel or gas generators, modular turbines, solar or fuel cell microgrids can be installed in weeks to fill that gap.
These systems allow new data centers to go live in months instead of years, hence they are encouraged despite the temporary hit to profit margins. With AI workloads demanding immediate capacity, speed-to-power has become a decisive factor in this competitive market. Onsite generation gives operators the freedom to kickstart operations, avoid grid bottlenecks to scale rapidly, and maintain project timelines.
Redefining Data Center Resilience
A single outage can cost a data center millions in lost operations. Traditional diesel generators remain the most common backup option, configured in redundant N+1 or 2N systems to ensure continuous uptime. Power reliability remains a non-negotiable requirement of the cloud, hence a new wave of clean, efficient alternatives is emerging.
Fuel cells provide scalable, low-emission power that can run independently of the grid. The EPA now allows up to 50 hours per year of non-emergency generator operation, making limited grid support feasible. As power outages and grid congestion increase across the U.S., onsite power gives data centers the flexibility to island from the grid and maintain uninterrupted operations.
Clean Energy Mandates Push Onsite Innovation
Tech giants are pursuing on-site energy strategies that align with their corporate net-zero commitments. Equinix has deployed Bloom Energy fuel cells at 19 facilities, while Microsoft and AWS are testing hydrogen-based fuel systems. Amazon has also partnered on small modular reactor projects to supply carbon-free nuclear power to its campuses.
These projects illustrate the growing trend of integrating clean, self-contained energy systems as part of mainstream data center design. Onsite renewables like solar PV and battery storage complement these efforts, enabling hybrid systems that reduce emissions while maintaining reliability.
Microgrids and Modular Systems Are the Future
Microgrids integrate multiple energy sources, such as natural gas, solar, and battery storage, into one intelligent, controllable network. They can operate in parallel with the grid or independently, based on site needs. For data centers, this means greater control over cost, redundancy, and carbon footprint.
Vantage Data Centers recently announced plans to deploy more than one gigawatt of modular natural gas microgrid capacity across its U.S. campuses. These units can be installed in months, include advanced emissions controls, and run cleaner than conventional generation. Northfield’s custom transformers, engineered for smart grid compatibility, play a critical role in integrating these type of systems safely and efficiently.
Overcoming the Infrastructure Bottleneck
In the same vein as grid power, the key challenge in the onsite power revolution is equipment availability. Electrical power equipment shortages have become a global issue, with lead times stretching from months to years.
Northfield offers a faster path forward. With production lead times as short as 4 to 24 months for units up to 400 MVA and 500 kV, Northfield helps developers meet aggressive timelines without compromising quality. Each transformer is designed to ANSI/IEEE standards, built with European components, and tested under British-led quality control. For data centers racing to bring onsite power generation online, speed and reliability make all the difference.
Learn More
Northfield specializes in delivering mission-critical transformers on timelines few can match. With advanced quality controls, global manufacturing partnerships, and integrated logistics, Northfield helps data centers scale onsite generation quickly and reliably. Reach out to a Northfield team member to learn more.
Frequently Asked Questions (FAQs)
Why are data centers adopting onsite power?
Because grid connections are slow, unreliable, and increasingly congested. Onsite power provides speed, resilience, and control.
What types of onsite power systems are used by data centers?
Diesel and gas generators, fuel cells, microgrids, solar with battery storage, and in some cases, small modular nuclear reactors.
How do microgrids help data centers harness onsite power?
Microgrids integrate multiple energy sources and can operate independently from the grid during outages, improving resilience and reducing emissions.
What role does Northfield play in onsite power projects?
Northfield provides transformers of all types, such as those engineered for next generation grid systems, with the shortest lead times in the industry.
How fast can onsite power systems be deployed compared to utility grid connections?
Onsite systems can often be deployed in months, compared to the years it takes for utility grid connections.
