Data center business models
Powering data centers
Optimal Energy Solutions For Data Centers




Challenge your business model – build partnerships for investment in an optimal energy solution



Modern data centers needs extremely reliable and affordable power supply at all times. Traditionally, data center owners were not involved in generating their own power, though emergency diesels were a necessary nuisance that had to be handled locally.

With the Wärtsilä solution, a gas engine power plant is designed to be operated to meet an individual data center’s own needs, providing a competitive advantage in place of using local electricity supply. These generation assets can be owned and operated by an independent power producer or local utility, enabling them to sell power or backup capacity. This solution also allows the data center operator to replace any capex related to backup power generation through regular fees for backup capacity, thus deferring the expenditures.

Thanks to the high efficiency of the gas engines, they provide power to the data center at lower price than grid electricity. In addition, switching to natural gas can significantly reduce the carbon footprint of a data center. The fast start up gas generation improves the system efficiency, reliability and lower electric network emissions by enabling integration of the renewables such as wind and solar power.







BUSINESS MODEL 1:
MERCHANT PLANT + EMERGENCY POWER

Business_model1_data_centers

• An independent power producer (IPP) or the data center operator builds a gas engine power plant at the data center site.
• IPP sells electricity to the market on merchant basis. Data center purchases electricity from the market.
• Data center operator and IPP sign an emergency supply contract. In case of grid failures, the data center receives emergency power from the engine power plant.

Benefits
- No need to buy and maintain emergency diesel power generators.
- Gas engines provide back-up power with less emissions than would be caused by testing and operating diesel equipment.
- No investments in unused assets – equipment used for emergencies is also serving other purpose.


BUSINESS MODEL 2:
MERCHANT PLANT + EMERGENCY POWER

Business_model2_datacenters

 • IPP or data center operator builds a gas engine power plant at the data center site.
• Power plant serves as the primary source of power for the data center, providing the required redundancy. The redundancy capacity is used to sell electricity to the market.
• Optional heat recovery systems are used to generate cooling power for the data center. Waste heat can also be sold for local district heating.

Benefits
- Power for the data center is generated from natural gas at competitive cost and with low environmental footprint.
- Data center operator gets more flexibility in choosing the site. Strong power grid is no longer a requirement.
- Avoid investing in emergency-only diesel generators.
- Using of heat recovery for data center cooling may reduce electricity demand.
- New source of revenue – selling electricity and heat to the market. 


BUSINESS MODEL 3:
MERCHANT PLANT + EMERGENCY POWER

Business model 3

• The data centre is built on a site where no suitable grid connection is available.
• The IPP or data centre operator builds a gas engine power plant at the data centre site. 
• The power plant serves as the only power source for the data centre. 
• If a grid connection becomes available in the future, the power plant may be used like Model 1 or Model 2. 

Benefits
- Easier to choose a site for the data centre – grid connection availability is no longer a constraint. 
- Faster data centre development – construction of a gas engine power plant takes less time than arranging and building a high-capacity grid connection. 
- Using gas engines makes any additional back-up power system unnecessary.






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