Equinix Inc. is collaborating with several energy companies working to develop innovative approaches to generate reliable and sustainable electricity that can support the needs of Equinix data centers worldwide. The effort is part of Equinix’s diversified portfolio power strategy to help mitigate potential power constraints in the future by expanding traditional power arrangements with utilities, combining new on-site power generation technologies and exploring next-generation nuclear energy, the company said.
According to a report from the International Energy Agency, the world’s electricity consumption is projected to grow 4 percent annually through 2027 due to unprecedented electrification, data center expansion driven by AI, and a resurgence in industrial manufacturing. “This rising demand can put a strain on utility providers to generate enough power and is already putting pressure on aging electrical grids to distribute it. To help meet demand and support continued growth, the world’s energy grid will require new sources of electricity,” Equinix officials said.
As part of its strategy, Equinix is funding and supporting advanced transmission system upgrades with utility partners, including new substations designed to enhance grid reliability and emergency backup solutions during power interruptions. The company is also investing in power solutions such as fuel cells and natural gas while adding capacity resources to the grids where it operates.
“Access to round-the-clock electricity is critical to support the infrastructure that powers everything from AI-driven drug discovery to cloud-based video streaming,” said Raouf Abdel, EVP of global operations at Equinix. “As energy demand increases, we believe we have an opportunity and responsibility to support the development of reliable, sustainable, scalable energy infrastructure that can support our collective future. By working with our energy partners, we believe we can support the energy needs of our customers and communities around the world by helping to strengthen the grid and investing in new energy sources.”
Equinix sees safe, efficient and reliable nuclear energy as a promising solution to help power data centers and the broader grid. On that front, the company is working with Oklo, Radiant, ULC-Energy with Rolls-Royce SMR, and Stellaria.
Equinix also believes advanced fuel cells can be used for scalable, efficient and cleaner on-site energy. The company has been using fuel cells for more than 10 years in collaboration with Bloom Energy, officials said.
“Equinix is committed to being part of the creative and sustainable solutions that help address the world’s growing energy needs. As data centers continue to provide the crucial infrastructure powering AI and the global economy, it is essential to develop and deploy the energy infrastructure required to power them,” the company said.
