Data center energy demand drives grid investment and microgrid growth

The rising energy demand from data centers and industrial electrification is driving significant shifts in infrastructure investment and power generation strategies.

Duke Energy has implemented a new billing model that requires large technology companies to contribute to the capital costs of grid expansion. This move aims to prevent the costs of building infrastructure for hyperscale and AI training sites from being passed on to residential consumers through general electricity tariffs.

In response to grid connection limitations and shortages in equipment like gas turbines, companies such as 2G Energy are focusing on local solutions like microgrids. 2G Energy reports a surge in orders for data center projects, with current orders already exceeding double its total 2025 production capacity. The company aims to significantly increase its revenue and EBIT margins through 2028 by leveraging available gas engine technology to meet the growing demand for decentralized power.