A significant discussion point at the MetroConnect conference in Fort Lauderdale this week revolves around the challenges of securing power solutions from local utilities for data center expansion. A regional data center operator attending the conference informed Inside Towers about their frequent predicament: “The local utility will not commit to providing the required power to our site until we present a valid tenant agreement. Conversely, our prospective tenant, often a hyperscaler, will not commit to a lease agreement until we can assure them that power is already available at the site.”
On-site power generation emerges as a potential interim solution for data center operations to get started while local utilities develop the necessary power delivery infrastructure. This development period can range from several months to several years. Options like wind and solar farms are viable, depending upon the availability of adjacent land. Small modular reactors are being considered but informed sources suggest they could take 7-10 years to develop. Currently, mobile gas turbines present a viable and cost-effective solution.
Duos Technologies Group (NASDAQ: DUOT), through its subsidiaries Duos Edge AI and Duos Energy, is deploying mobile gas turbines at data centers. Enclosed in a container roughly the size of a bus, each turbine uses fuel from nearby gas lines to generate 20-35 MW of continuous power, which is supplied behind-the-meter to the data center. Multiple turbines can be combined to meet the site’s overall power demand requirements.
Duos Energy, in partnership with Fortress Investment Group, recently signed an agreement to manage 850 MW of mobile gas turbines acquired from APR Energy. The New APR Energy’s mobile gas turbine fleet offers a rapid and flexible alternative that can accelerate a data center developer’s project timeline and scalability.
New APR Energy, with support from Duos Technologies Group, is deploying four mobile gas turbines to provide over 100 MW of dedicated behind-the-meter power to a major U.S.-based AI hyperscaler, with installation expected by mid-March.
In December, Duos Edge AI and Duos Energy announced a partnership with Pampa Economic Development Corporation and Pampa Energy Center to develop high-density data center (HDDC) parks in the Texas Panhandle. Partnering with Fortress Investment Group, Duos Energy will ensure reliable energy for these HDDCs by providing up to 500 MW of natural gas self-generation, with redundancy provided by wind turbine generation and alternative fuel sources.
Duos Edge AI states it is optimizing project timelines, streamlining operations, and delivering tailored infrastructure solutions to support Pampa’s four 50 MW HDDCs, with the first expected to be operational by the end of 2025.
“The U.S. faces a significant challenge in alleviating the current data center demand shortfall and building data centers using alternative energy sources,” said Doug Recker, President and Founder of Duos Edge AI. “This collaboration addresses these challenges while setting a new direction for the Texas Panhandle, positioning Pampa as a future leader in the high-density data center sector.”
By John Celentano, Inside Towers Business Editor
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