The Marathon: Can Behind-The-Meter Data Center Power Solutions Endure The Decade In The US?

The report analyzes the evolution of US behind-the-meter (BTM) data center power from temporary bridge solutions to long-term infrastructure, emphasizing how duration shifts the economic viability of different power technologies.

Key Takeaways

• 1.The US data center market is transitioning from a 'sprint' (fast, temporary power) to a 'marathon' (long-duration, durable power) requiring different capital allocation strategies.
• 2.Economics of BTM power change significantly after year 10; gas engines show 'sawtooth' cost curves due to rebuild cycles, while combined-cycle plants become more efficient for long-term baseloads.
• 3.Regulatory environments are becoming a primary sorting mechanism, with states either enabling self-generation or imposing ratepayer protections against large-load impacts.

Table of Contents

• Summary
• Time changes the economics of behind-the-meter power
• The sustained cost of delivered energy
• Duration is splitting the behind-the-meter market into three strategies
• Bridge power
• Hybrid power
• Long-duration private power
• Geography will decide whether behind-the-meter remains a bridge or becomes infrastructure
• Regulation is becoming the sorting mechanism
• The marathon will reward reversibility

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