Beyond SCADA: Managing Operational Complexity in the Data Center Era

The explosive growth of electricity demand is reviving a challenge not seen in decades—power availability. For years, organizations could rely on their utility to deliver the energy they needed, when they needed it. 

Today, that model is breaking down due to the accelerating power demand and the long lead times of utilities to build out power generation and transmission infrastructure to ensure a matching power supply. Organizations are now faced with powering some or all of their operations, often at scales once reserved for entire cities.

This shift introduces a new layer of complexity. Managing a microgrid as a primary source of generation 24x7 now requires capabilities once exclusive to utilities—forecasting variable loads, integrating large-scale batteries, and orchestrating diverse generation sources, including renewables, all while ensuring real-time coordination with the grid.

The catalyst is clear: the AI race and hyperscale data centers have driven electricity demand far beyond forecasts, straining grids worldwide. Power-hungry AI applications and advanced computing chips amplify this trend.

While short-term fixes like gas-fired plants will help, long-term solutions will span renewables, storage, and even small modular reactors. No single technology will suffice—and advanced microgrid control technology will be at the heart of this transformation, enabling both resilience and innovation.

New challenges require new solutions

For microgrids tied to the utility grid, coordination across the point of connection (POC) is essential. During periods of grid congestion, utilities may request increased microgrid output or even islanding to reduce demand. Large fluctuations must be synchronized to avoid disturbances—such as those seen in Northern Virginia, where uncoordinated actions triggered cascading issues across the regional grid. Real-time interoperability and secure communication protocols are no longer optional; they are foundational. Looking ahead, AI forecasting tools and advanced control systems will enable microgrids to actively support grid stability and participate in energy markets.

For companies—primarily hyperscale data centers—pursuing full independence from the grid, the challenge is even greater: balancing generation and load continuously, 24x7, 365 days a year.

The scale is staggering, with projects ranging from 500 MW to 10,000 MW. For perspective, San Diego set a record peak demand of 5,000 MW during a heat wave in 2024.

Meeting these demands on aggressive timelines means gas-fired generation—single-cycle and combined-cycle plants—will dominate initially, supplemented by renewables and batteries where feasible. Each resource brings its own operational complexity, requiring sophisticated orchestration and intelligent automation.

Over time, these islanded systems will evolve into hybrid architectures that combine predictive analytics, digital twins, and diverse generation sources to ensure resilience and sustainability.  While these systems operate independently today, their long-term vision—often five to ten years out—is to connect to the grid once interconnection requests are approved. This future integration will enable participation in energy markets and enhance overall resilience.

Why SCADA alone isn’t enough

Traditional SCADA systems for microgrids were built for monitoring and basic control—not for predictive analytics and forecasting, dynamic optimization, or real-time market participation.

Today’s microgrids demand far more, requiring functionality similar to what electrical utilities use. SCADA must evolve into an integrated energy management platform, augmented by AI, edge computing, and digital twins. This transformation turns SCADA from a passive dashboard into the brain of the microgrid—forecasting, optimizing, and coordinating across multiple assets and stakeholders. This evolution will be driven by three key capabilities: multi-resource optimization, advanced load management, and utility coordination.

Tomorrow’s microgrids

Tomorrow’s microgrids will orchestrate diverse resources—gas turbines, batteries, solar, wind, and emerging technologies like small modular reactors. Dynamic charge/discharge strategies for batteries, combined with real-time market participation, will unlock new revenue streams. This multi-resource optimization ensures resilience and sustainability, enabling hyperscale operators to meet aggressive timelines without sacrificing efficiency.

AI-driven data centers introduce unique load profiles—GPU-intensive tasks, cooling systems, and variable computational peaks. Microgrids of the future will leverage predictive analytics to anticipate these spikes and dynamically shift loads without compromising performance.

Advanced load management will include rescheduling non-critical processes, optimizing cooling energy, and integrating demand response strategies to maintain reliability while reducing costs. In the future, this may even extend to pausing energy-intensive AI training during peak grid stress—a strategy that could accelerate interconnection approvals for operators willing to offer flexibility.

As microgrids proliferate, coordination with regional utilities and system operators becomes critical. Secure, real-time data exchange will prevent disturbances during high-stress periods and support grid balancing. Microgrids will not only respond to utility signals but actively participate in ancillary services, reinforcing overall grid reliability and monetizing flexibility.

Together, these advancements position microgrids as intelligent platforms that enable resilience, sustainability, and the power-hungry AI applications driving tomorrow’s economy.

Microgrids are no longer optional—they are strategic assets. As power availability becomes a constraint and data center loads soar, SCADA systems must transform into intelligent, predictive platforms.

This evolution is critical for managing complexity at scales once reserved for utilities. The future of data centers depends on microgrids that think, predict, and act—because in a data-driven world, power is everything.