Why We Need A New Solution For Powering Data Centers

Diesel generators and uninterruptible power supply (UPS) systems have been the status quo for data centers for decades.

But these systems are unsustainable for several reasons: 

The electric grid is becoming less reliable.


According to the 2025 US Department of Energy report, power plant retirements plus load growth increases the risk of power outages by 100x by 2030.

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Power plant retirements plus load growth increases the risk of power outages by 100x by 2030.1

Generators can’t keep up with power demands. 

Many diesel generators in the marketplace are nearing end of life, without adequate capacity or performance to keep up with power demands.

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AI cooling needs 40% of data center power—UPS systems can’t keep up.2

Traditional systems make throttling issues worse.

Generators only cover critical loads and operators set “power cap” policies that slow servers or drop tasks whenever power might be lost.

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Variable loads also put excessive strain on generators, leading to derated systems and decreased capacity over time.

Traditional systems are prone to failure.

More frequent run time and variable loads can degrade performance of generators and shorten the lifespan of UPS batteries.

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27% of data center operators experienced a generator-related failure from 2020-2023.3

Generators take up too much space.

“Grey space,” or mechanical and electrical support inside the building, can make up nearly 50% of modern data center designs.4 Outside, generator yards and step-up transformers can take up a significant portion of the total real estate.

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Up to 50% of a data center's interior is now dedicated to mechanical and electrical “grey space.”

They create environmental concerns.

Diesel generators emit carbon dioxide, nitrogen oxide and sulfur oxides, leading regulatory agencies (including the US EPA) to limit run time to 100 hours at full load per year.5

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EPA limits diesel generator use to 100 hours annually at full load, citing CO2, NOx, and SOx emissions.
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Virtual Utility®:
Scalable, Sustainable
On-Site Power

With AI and cloud computing demanding more power than ever before and our economy depending on it, it’s time to rethink the way we power data centers.

As the first utility-grade network deployed at your site, Virtual Utility® is a next-generation microgrid created for power-intensive data centers.

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Diesel + UPS
Response time
Instant
20 seconds or more for full building load
Load pickup
Full
Critical only
Runtime
100 hours / year for the diesel generator (per US EPA)
100 hours/year (per US EPA)
Controls variable current, voltage + frequency from grid
Yes
No
Requires utility interconnection agreement
No
Yes
Battery lifespan (most common chemistry)
Lithium iron phosphate - rated for 6,000 cycles
Lead acid - rated for 1,500 cycles
Power efficiency
99% at full load
40% at 80% total load capacity6
Carbon footprint
Reduced by 90% compared to diesel generators
Increased regulatory controls
Space requirements
Significantly less than diesel generators
Could be up to 50% of building space and 20-40% of land
Designed to integrate with renewable sources
Yes
No
Continuously monitored by software
Yes
No
Enables participation in utility incentives 
Yes
No
Tax credits available
Yes - up to 50% via the Federal Tax Incentives Bill
No

Rethink power with a system built for the future of data centers.

It’s clear data centers need more than backup power—they need resilient, scalable and space-efficient power that eliminates distortions and load-shedding. Virtual Utility® delivers continuous uptime, reduces emissions by 90% and requires no interconnection agreement. Take the first step to future-proofing your data centers.

Estimate your costs and savings with our 2-minute Virtual Utility® calculator.

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