February 18, 2025

Overcoming the Challenges to Securing Power for Middle-Market Data Centers

The rapid growth of data centers has shifted the focus from real estate availability to power access. While hyperscale data centers have secured their energy futures with large-scale investments, mid-market players face unique challenges in ensuring reliable, cost-effective energy supply.

Key Challenges and Solutions

  1. Developing an Energy Strategy: Mid-market operators must explore on-site generation, renewable partnerships, and strategic utility agreements to secure reliable power.
  2. Navigating New Approaches to the Stakeholder Ecosystem: Energy procurement now requires deeper collaboration with regulators, utilities, and investors, demanding internal expertise or strategic partnerships.
  3. Approaching Supply Chain and Capital Delivery to Minimize Delays: Equipment shortages and long lead times slow development. Forming buyers’ clubs and streamlining procurement can help mitigate delays.
  4. Deploying Best-in-Class Operations and Design to Maximize Efficiency from the Build: Efficient cooling and power management are critical. Water recycling, closed-loop cooling, and AI-driven optimizations enhance sustainability.
  5. Supporting the Specialized Talent Needs Required to Execute on These Strategies: The industry faces a shortage of skilled energy professionals. Investing in hiring and training is essential for long-term success.

How A&M Can Help

Alvarez & Marsal's team helps mid-market data center operators develop cost-effective energy strategies, navigate regulatory and utility challenges, and optimize supply chain management to mitigate delays. With deep industry knowledge and a proven track record, A&M empowers data center operators to secure reliable power, enhance efficiency and drive long-term growth. Read the full article to gain deeper insights into the changing landscape of data centers.

Read the Full Article Here

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