As grid interconnection timelines have stretched and electrical equipment shortages have deepened, an increasing number of data center developers are exploring a strategy that would have seemed unusual just a few years ago: generating a meaningful share of a facility's power onsite, rather than relying entirely on grid connection.
The "Bring Your Own Power" Logic
The rationale is straightforward given current grid constraints. If high-voltage transmission interconnection can take three to five years to secure in some markets, while medium- or low-voltage onsite generation can potentially be deployed considerably faster, developers facing time-sensitive demand commitments may find it more attractive to generate power locally — at least for an initial phase — rather than wait for full grid interconnection to materialise. This is sometimes referred to in industry discussion as a "bring your own power" approach, and it has driven notable growth in interest around onsite natural gas generation, fuel cells, and other behind-the-meter generation technologies.
Why Fuel Cells Have Gained Particular Attention
- Fuel cells can generate electricity at medium or low voltage directly, avoiding the need for the high-voltage transformers that represent one of the most acute supply chain bottlenecks discussed elsewhere in our analysis
- They offer relatively clean, quiet operation compared with combustion-based generation, which matters for facilities sited near residential areas where noise and emissions are genuine community concerns
- Major fuel cell suppliers have reported substantial order growth specifically tied to data center demand, reflecting the strategy's growing adoption among large infrastructure developers
When the bottleneck shifts from money to physical equipment availability, "buy more power" stops being a useful strategy — "generate some of your own" becomes a genuinely competitive one.
Microgrids as an Integrated Energy Architecture
Beyond standalone onsite generation, some developers are pursuing fuller microgrid architectures — combining onsite generation, battery energy storage, and a grid connection into an integrated system capable of operating with some degree of independence from the broader grid while still benefiting from grid connection where available. This approach can offer genuine resilience benefits alongside the primary motivation of accelerating time-to-power, since a well-designed microgrid can continue operating through certain categories of grid disturbance that would otherwise affect a purely grid-dependent facility.
This Is a Complement to Grid Connection, Not a Replacement
It is worth being precise about what onsite generation and microgrid strategies actually achieve. For most large AI facilities, full grid independence is neither economically practical nor operationally desirable — onsite generation typically serves as a way to accelerate initial energisation or add resilience and flexibility, complementing an eventual grid connection rather than permanently replacing it. Developers should evaluate onsite generation explicitly as a bridging or complementary strategy, with a clear plan for how it integrates with grid connection once that connection is ultimately secured.
Evaluating Onsite Power as Part of a Broader Energy Strategy
DATAPERT advises clients on evaluating onsite generation and microgrid strategies within a comprehensive energy strategy, alongside our broader data center development advisory. Start a project to discuss an energy delivery strategy for your next facility.
