Why data centers are thinking differently about energy

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Data centers are the backbone of our rapidly evolving global digital economy. With the rising demand for computing power, it's increasingly important to have reliable and sustainable energy sources. Over the past few decades, data center architectures have reflected the benefits of a sufficient and reliable power grid infrastructure.

Now, they incorporate on-site battery storage and backup power generation assets to ensure uninterrupted electrical supply during grid outages. The need to address energy availability, sustainability, and affordability challenges is intensifying for data center operators. As a result, they recognize a number of market forces they need to adapt to and look to the future.

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ESG and decarbonization are no longer an afterthought 

Data centers account for 1% - 1.5% of global electricity use and operators acknowledge their impact on the environment. They set their own company goals to meet and exceed environmental, sustainability and governance (ESG) initiatives set by governing bodies. To meet carbon accounting goals, data centers are under pressure from local governments to report to shareholders and stakeholders. Investors are also offering incentives for conducting carbon accounting. Companies use the following greenhouse gas (GHG) accounting classification in their operations.

  • Scope 1: GHG emissions from power generated by on-site assets. Data centers are looking to reduce energy-related scope 1 emissions. Examples of such technologies include hydrotreated vegetable oil (HVO) instead of diesel-fueled generators, standby battery energy storage, and natural gas or hydrogen-based technologies.
  • Scope 2: GHG emissions from the power consumed from the grid. These are the bulk of data centers' emissions. To combat this, data centers are making agreements to source renewable energy from wind and solar sources. This is a rapid method for them to decrease their carbon footprint. It's much faster than continuing to purchase power from thermal power plants.
  • Scope 3: GHG emissions from all other data center operations - from upstream suppliers to their downstream functions. An example is the GHG emissions associated with the production and delivery of their backup generators.

By accounting for scope 1, 2, and 3 emissions, data centers gain valuable insights into their environmental impact. This helps them identify areas of improvement and drive technology innovations and investments that can reduce their carbon footprint. As they continue to prioritize ESG initiatives, the industry will become increasingly sustainable and better equipped to address the energy and environmental challenges of the future.

Data center on-site energy assets are subject to tight emission regulations

Data centers usually choose diesel generators for backup power. Nonetheless, some local air quality authorities have more strict exhaust emissions regulations than national standards, such as EPA standards. These regulations aim to limit the environmental impact of data centers and their on-site energy assets are subject to these regulations that intend to limit their environmental impact. To achieve this, regulators may limit site emissions by reducing the number of operating hours allowed for on-site power generation.

To comply, data center operators and power asset manufacturers are taking steps to reduce their impact on local communities. Manufacturers are developing new engine control calibrations to reduce nitrogen oxide (NOx) emissions. They are also offering exhaust aftertreatment systems to further improve air quality. On the other hand, data centers are designing compliance strategies to adjust their operational and testing hours to meet these regulations. They might also incorporate new power generation technology and low-carbon fuel solutions to their portfolio. 

On-site solutions to electrical grid constraints

Data centers worldwide run over 18 million servers. These servers put significant strain on the local electricity grids. It’s an issue particularly evident in areas like Northern Virginia and Dublin, Ireland where data centers account for a large portion of the grid demand. To generate some of the electricity they consume with their backup generator sets, data centers may need to exceed their permitted operating hours. The Virginia Department of Environmental Quality has considered temporarily allowing this to address the issue. Similarly, in Dublin, the state-owned electric power transmission operator has imposed limits on how much electricity data centers can draw from the grid. This has led to the need for alternative on-site, prime power solutions.

On-site power generation can bridge the gap of grid congestion issues caused by increased electricity demand. Data centers can generate some of their own electricity using backup power generation assets. Right now, generator sets are a reliable, mature technology that produce loss of power from a small physical footprint. As hydrogen supply chains mature, other assets like hydrogen fuel cells can provide low-carbon power to facilities in the future. Data center developers understand this well and are evaluating generators and other new technologies for prime power, not just emergency power.

Monetization opportunities through grid support programs

Data center power assets have the potential to benefit the company and others by participating in grid support programs. Data centers can agree to operate their assets during peak electrical demand phases of the day. This could include running air conditioning units at noon in Texas in August, for example. They can then either feed this power back to the grid or use it to essentially take their data center off the grid.

Energy aggregators are also making it easier than ever to monetize from power generation assets. Aggregators sign up large numbers of small distributed power generation resources and commercialize them as if they were a virtual power plant. The Federal Energy Regulatory Commission's Order No. 2222 makes it easier for on-site gensets and other distributed energy resources to access wholesale energy markets in the United States.

By participating in grid support programs, data centers can help make the electrical grid more resilient and reliable while further benefiting their company.

Data centers are changing the way they operate due to market forces like regulations, decarbonization goals, and grid capacity. Fortunately, Cummins Inc. is committed to partnering with data centers. This partnership will help data centers achieve their ESG goals and thrive in a rapidly changing industry. These opportunities not only help data centers meet market demands but also contribute to a greener and more sustainable future.

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Cummins Inc.

Cummins, a global power technology leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company's products range from internal combustion, electric and hybrid integrated power solutions and components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, microgrid controls, batteries, electrolyzers and fuel cell products.

STEM Project Unites Children in the UK and Uzbekistan

Zoom call with West Park School and the Children's Home

If you ever doubted the ability of young minds to grasp what many adults would consider complex concepts, then you'll be amazed by the achievements of two groups of young children - one in a school in northern England, and the other 4,000 miles away in an orphanage in Uzbekistan.

With the support of Cummins, children ranging from six to twelve years of age have managed to bridge the language, culture, and time divide. They are collaborating with great success on building a basic electric racing car.

The story begins with a visit by Cummins to Rudmash Export Service, which has been representing Cummins in Tashkent, the capital of Uzbekistan, since 2018.

Rudmash has an impressive list of clients in mining, construction, gas, and power generation.

It is also a highly respected supporter of community initiatives, a key focus for Cummins.

During the visit, Amit Kumar, Cummins' Technical Territory Manager for the Commonwealth of Independent States (CIS) region, mentioned the work he was doing with local schools involving the Greenpower Education Trust in the UK.

Amit suggested that Rudmash might consider introducing local children to the fantastic learning opportunity that comes from building an electric car.

The Rudmash executive team loved the idea and reached out to their friends at the local orphanage (Children’s Home 22), about the proposed connection with children from West Park Academy – a primary school near Cummins' manufacturing plant in Darlington, England.

Students at the Children's Home working on the car
The children from Children's Home 22 building the car

Speaking through a translator, Rudmash Sales Manager Mr. Mavlonberdi Akhmedov said there was no hesitation from the orphanage. "Everyone was excited about it," he said. "When we showed them pictures of the car, the children's eyes lit up with interest.

"The only issue we encountered was not being able to involve the older children, but I think Amit has something in his mind for them. It will involve a similar collaboration with a UK school on a larger electric car that they can fit in!"

Over in Darlington, teacher Mr. David Fraser and his group of 9 to 11-year-olds were thrilled at the prospect of working with children from another country.

Students from West Park Academy
The children from West Park Academy

"Before our first session, I showed the children a map of Uzbekistan and explained how the time zones worked," Mr. Fraser said. "Tashkent is four hours ahead of us."

"When they started hearing a different language, they were a little hesitant although still excited. However, towards the end, once they got used to the translation pauses, lots of questions were being asked."

"They adapted very quickly, and every session with the orphanage has become more engaging. The children have greatly benefited from the relationship. It's been a great learning experience."

The car involved in the project is called the Greenpower Goblin G2. It comes as a flat-pack kit including chassis, wheels, steering, disc brakes, a 24V electric motor, and two 12V batteries.

Students at West Park Academy working on the car
The children from West Park Academy building the car

"The project is all about inspiring young children to take an interest in engineering in a fun and innovative way," said Amit Kumar, who earlier this year received special recognition at the North-East England STEM (Science, Technology, Engineering, and Mathematics) Awards for his years of dedication to STEM Education.

"The build introduces children to basic mechanics and electronics and might be the first step on the pathway to a career in engineering or another STEM field.

Mr. Fraser said the children soon started discussing aspects of the car such as frames, brakes, and steering geometry. There was a lively question-and-answer session on different materials that could be used to design and make the car's body. Their last session was about controls and driving.

"There are also other general discussions, as the children are eager to learn more about each other's countries," said Amit, who leads the sessions.

Students at the Children's Home looking at the car drawing
The children from Children's Home 22 talking about a drawing while on a zoom call

Rudmash service engineer Mr. Abdullayev Shakhzod said the children were enjoying the experience of working in teams.

"It's a fantastic new chapter in the history of a place that has a storied past. It was established in 1942 during the Second World War to care for evacuees from all over Eastern Europe. Children of over 40 different nationalities have been cared for by this children's home.

"The home is named Antonina Pavlovna Khlebushkina after the woman who ran it in the early days. She would be so proud of what is happening there today.

"As the summer vacation times differ in the two countries, the West Park school children have already finished building their cars, while the Uzbekistan car is about 40% complete.

"When the children return from their summer camp in September, they will start the rear axle, motor, and electrical components. Then they can take it for a drive," Amit said.

"Just before their summer term ended, the West Park children conducted a demonstration for their new friends in Tashkent. They set up a track and showcased driving the car on it. It was a great success."

Mr. Akhmedov, speaking through a translator, mentioned that the management team at Rudmash was considering how the project could expand beyond the children's home and into schools and youth organizations throughout Uzbekistan.

Mr. Akhmedov praised Cummins for their support of the project. "They have shown great responsibility at every stage and been very proactive, always striving to ensure things are done right.

"This is just the beginning for these children. It's already motivating them to learn more and develop their skills in broader technical applications.

"I would say that this project is not only important for the children's home but also for our city of Tashkent and the Republic of Uzbekistan, as it is nurturing an educational culture that is highly valuable. I can't thank Amit and Cummins enough."

Amit expressed that it's a privilege to help Cummins inspire young people about engineering and science from an early age.

How is the United States investing in clean energy?

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Our planet is facing a dire crisis: carbon dioxide concentrations in the atmosphere continue to soar above record highs. If gone unaddressed, the collective stress of climate change will produce an irreparable impact. Our health, energy, water, and food ecosystems are at risk. 

As it stands, there are many long-term effects of climate change. In North America, climate change is forecasted to cause decreasing snowpack in the western mountains. It will also lead to a 5–20% increase in yields of rain-fed agriculture and great intensity of heat waves. In fact, over the last five years, the United States has incurred roughly $120 billion a year in damages as a result of natural disasters caused by extreme weather and climate events.

Beyond natural catastrophes, climatic risks to the United States will have a cascading effect on the country's interconnected ecosystems. Reduced labor and overall economic productivity, and altered crop yields, will disproportionately harm lower-income and marginalized populations. These groups lack the resources to prepare or cope with extreme weather and climate events.

The world is investing in clean energy innovation

Combating the intensifying climate crisis requires a strategic combination of research and development (R&D), innovation, technology — and bold attempts.

Around the globe, countries are investing in clean energy to contribute to a livable planet now and for generations to come. In 2022, the US passed the Inflation Reduction Act, which includes a historic $370 billion investment to address the climate crisis. The Inflation Reduction Act provides tax credits and incentives to power homes, businesses, and communities with clean energy by 2030. The Act will increase investments in the fastest-growing power generation technologies, solar and wind. It will also advance cost-saving clean energy projects and protect two million acres of national forests. These initiatives are in addition to substantial tax credits and rebates offered to families and businesses in the United States.
Consequently, a stronger clean energy economy will contribute to overall economic growth and competition. As a result, there will be millions of new well-paying jobs for Americans to make clean energy.

It is possible to start decarbonizing now

Governmental policy strategies and investments in decarbonization technologies are part of the solution to produce increasingly cheap, dependable, and clean energy.

Strong communities and vibrant economies depend on a healthier planet. As a global power technology leader, Cummins is in a unique position to power customer success by leading during this energy transition. We intent to do so by providing customers with the right technology at the right time, understanding of their needs and applications.

We think of this journey to carbon neutrality in two distinct and complementary ways. First, by innovating zero-emission solutions and introducing them in markets and applications where the infrastructure, development and deployment are ready. Secondly, by advancing internal combustion engines through efficiency improvement and by running them on cleaner alternative fuels for a well-to-wheels solution.

Through Destination Zero, we are advancing low- and no-carbon platforms. This includes diesel and natural gas engines, hybrid, and electric platforms, as well as powertrain components, controls, and related technologies.

Join Cummins in powering a better tomorrow

Cummins environmental sustainability strategy includes goals timed for 2030. Progress toward the reduction of carbon emissions from company plants and facilities — in addition to our products — is in full swing. For more than one hundred years, we have brought technological solutions to market. As a power solutions leader, we will continue to power a more prosperous world for today and tomorrow. Are you ready to consider investing in new power solutions?

Traci Kraus headshot

Traci Kraus

Traci Kraus is a Director of Government Relations where she leads US federal advocacy for Cummins. She focuses on energy, climate, hydrogen, transportation and budget legislative and regulatory issues. 

Prior to joining Cummins, Traci worked for former U.S. Senator Russ Feingold.  She has a Master's in Public Administration from the George Washington University and B.A.s in Government and Politics and Communication from the University of Maryland in College Park. She is originally from Chicago, and now lives outside of Washington, D.C. with her husband, Aaron and two children Liam (8) and Sloane (5).

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