Tech giants aim to repurpose old power plants to meet data center demand
The increasing demand for AI is causing leading tech companies to explore alternative solutions to power their data centers. Microsoft in particular is considering the potential use of nuclear energy to meet these needs.
However, the challenges facing companies like Microsoft, Google and Amazon go beyond securing affordable and green energy sources. They also grapple with the problem of identifying suitable locations for new data centers that provide the necessary infrastructure, including sufficient power and connectivity.
As traditional locations become saturated, tech giants are increasingly considering unconventional locations, such as repurposing old industrial facilities and decommissioned power plants.
Not without problems
The Financial Timesquoting Adam Cookson, head of land transactions for the EMEA data centre advisory group of real estate company Cushman & Wakefield, says: “Many data centre markets are becoming ‘very constrained in terms of land and power availability’, which in turn [has] “Interest in smaller markets and more ‘complex locations’, such as old power stations, was stimulated.”
Camilla Hodgson, who was the author of FT piece, notes: “Coal-fired power plants are being decommissioned in parts of the US and Europe, but may have features that a data center campus would need. For example, industrial sites are typically designed for high power consumption and may be supplied with power transmission infrastructure and be close to a water source.”
Of course, converting such sites is not without its challenges, especially when it comes to reconnecting to the electricity grid. However, repurposing old industrial sites is increasingly seen as a more viable option than building new facilities from scratch.
According to the article, Microsoft plans to build data centers at the sites of the decommissioned Eggborough and Skelton Grange power stations near Leeds, England. Construction at Eggborough is expected to begin in 2027. Amazon is reportedly planning a project at the site of the old Birchwood power station in Virginia, US.
