Getting Creative with Behind-the-Meter Power for Data Centers | GPC Infrastructure

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The rapid acceleration of artificial intelligence has created an unprecedented surge in demand for data center power, forcing operators to rethink traditional approaches to energy infrastructure. In Austin, Texas, industry experts highlight that while the grid was already struggling to meet needs from electrified homes and electric vehicles, the influx of massive new loads from AI-driven data centers presents a unique challenge. Grid operators are now compelled to step back and carefully evaluate how to integrate these large-scale users without overloading the complex American electrical system. This pressure has sparked a shift in strategy, moving away from solely relying on existing grid capacity and instead encouraging stakeholders to explore innovative solutions that address both technical and logistical constraints. To meet this growing demand, companies like GPC Infrastructure are turning to "behind-the-meter" power generation, a concept that involves building dedicated power plants directly at the data center site rather than depending entirely on the public utility grid. Although co-locating energy-intensive projects with their own generation sources is not a new idea, the current scale and specific challenges of AI loads have revitalized interest in this approach. By focusing on the midstream system to secure gas resources for these private power plants, operators can bypass long utility timelines and create reliable, localized energy solutions. This method allows facilities to generate their own electricity while maintaining the flexibility to eventually connect back to the grid, effectively leaving it in a better state than they found it by reducing strain on public infrastructure. Beyond solving immediate engineering and financial hurdles, these behind-the-meter solutions play a crucial role in fostering positive community relations and securing the social license to operate. Industry leaders emphasize that supporting local communities is paramount, and generating power onsite allows data centers to give back to the grid rather than just drawing from it unconditionally. This approach involves deep collaboration with partners across technical, financial, and commercial sectors to solve complex problems that arise during development. Furthermore, the industry is witnessing a democratization of information, where access to knowledge and resources is expanding, enabling more stakeholders to participate in shaping the future of digital infrastructure. Ultimately, the defining factor for the future of the digital infrastructure industry will be the ability to balance rapid growth with responsible stewardship of energy resources and community well-being. The current landscape is characterized by a collective effort to regain trust and ensure that expansion does not come at the expense of grid stability or local interests. As more people solve problems and innovate within this space, the sector stands on the brink of significant movement toward sustainable and resilient power models. The excitement surrounding these developments suggests a promising future where creativity born from constraints leads to breakthroughs that benefit both technology giants and the communities they serve.

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Welcome to JSA TV where we're live at Data Cloud USA in sunny Austin, Texas where we're covering the stories, news, and innovations from the digital infrastructure space. Today with me I have Connor Stone, manager of corporate development for DPC Infrastructure. Connor, nice to have you today. >> Thank you for having me. I'm glad to be here. >> we always love it when you can join us. So as AI accelerates data center development, how is the growing demand for power challenging the way operators think about it how and where they build? >> Yeah, it's it's a great question. I mean, so we're in the beautiful Austin. I'll use a Matthew McConaughey quote, looking back to look forward. I think seven, eight years ago grid operators were looking at power needs moving forward and this was all before this AI boom was on the front page of every single newspaper in in the country and just through electrification of homes, EVs, you name it. There was an incredible power need and coinciding with that was this addition of all of these renewable resources, right? So we had solar, you had wind, you had battery storage. And all of those are fantastic resources but come with their own challenges and so grid operators, you know, they have a very difficult job, right? The the electric grid in the US is one of one of if not the most complex system on the planet and you know, they had to sort through a lot of those new resources. They had to take a step back and say, okay, well, how are we going to integrate these into the system and I think what we're seeing now is similar. You're having a lot of data centers, large energy users come to the grid and say, okay, well, we want to interconnect and the RTOs are saying and the grid operators are saying, let's take a step back and see how we can do it. So, I think what you're seeing is people getting creative, right? And that's that's kind of where GPC comes in. We do behind the meter solutions for, you know, generation for data centers. And, you know, one thing we're doing is typically people have looked at the grid, where's power capacity, where can we plug in our data center, where can we plug in our large load. And what we're finding is it's actually for now makes more sense to to look at the midstream system. So, where can we find gas for our solution? So, you're just seeing people get creative. >> Yeah, I I constraint builds creativity, right? >> That's right. [laughter] >> So, with those good constraints and long-haul utility timelines challenging that growth, what role do powers onsite and behind the meter power solutions play in meeting that demand? >> Yeah, absolutely. So, we'll stay on the theme of like looking back, right? So, for about, you know, the last five or six decades, we've been co-locating large energy-intensive projects with their own generation, right? And so, you know, what what GPC is proposing and and kind of our peers in the industry are proposing is actually not new. It's It's been around for a while. It's a different flavor of of generation, of a way to power these large, you know, energy users. But, what we're so excited about and, you know, is a challenge is some of the problems associated with this type of AI load. So, we're working together, you know, with our partners. And at the end of the day, we think this solution is is really exciting because we get to solve problems with our partners. So, whether that's technical on the engineering side, whether that's on the finance side, whether that's on the commercial side, there's all sorts of problems, you know, to solve, but that's what gets us up in the morning as as GPC. And also, I think, you know, a kind of a shiny star for us in the future is once we have these power plants built for these facilities, I think what's exciting to us is the potential to plug them in to the grid, right? It's like the old trailhead saying goes, leave the trail better than you found it. I think this is a good opportunity to build these power plants and actually leave the grid better than we found it. So, we're excited about that. There's a lot of movement in this industry, a lot of movement in this space, a lot of people solving problems, and that's what we're excited about. >> Yeah, and that's got to be great for communities when you can give back to the grid, right? >> Of course. And community engagement is, you know, number one on our mind. I know it's number one on y'alls Mary, so so, you know, we want to we want to make, you know, a clear message that we're there to support the community. And we think this behind the meter solution is is one. >> Yeah, definitely. All right, so with in one word, what factor will define the future of digital infrastructure industry? >> Yeah, I think I think right now it's kind of a regaining maybe our social license to operate. And I think, you know, we try to do that at GP CR. I know the partners we work with are working very hard to get the right messages out there. And then I think also the democratization of information, right? People having access to knowledge. It's not something we've we've had. You saw it kind of with the, you know, with the rise of the internet, but now it's it's taken it a step further. So, I'm excited for people to have access to all of these great resources on the knowledge side and work side. And yeah, we we just couldn't be more excited about, you know, the the years to come in this industry. >> Wonderful. Well, congratulations on all the amazing things happening for you guys, and thanks for joining me today. >> Thanks for having me. >> Of course. All right, thank you to viewers for tuning in, and stay curious, stay connected, and happy networking.