The main barrier in the data centre industry right now is no secret. It’s widely known that grid and power constraints are the biggest blocker to data centre operations, with the wait for a grid connection spanning up to ten years. Primary hubs like Dublin, Frankfurt, and the Netherlands are experiencing moratoriums or restrictions to power.
AVK has always had a solutions-focused outlook. Our priority is problem solving with an innovative approach, providing a logical route around problems that block progress. The solution we’re proposing: Energy as a Service (EaaS). Energy as a Service will provide the one most important thing that data centre developers are searching for right now: Speed to Power.
What is Energy as a Service for on-site power solutions?
EaaS is a way that data centre operators can access power without experiencing the constraints of pursuing a traditional grid connection, resulting in years of stagnancy. Microgrid, BTM (behind the meter) technology provides a way to generate on-site power – an independent energy station that powers the data centre without requiring a connection with the grid service in that area. This offers grid independence for a higher level of resiliency and bypassing grid fluctuations in power. It also allows Speed to Power – a microgrid can be operational within 2-4 years as opposed to waiting up to a decade for a grid connection, allowing for increased operational years. The only problem: the upfront CapEx.
Traditionally, data centre operators have the financial responsibility in the equation, funding the construction and subsequent maintenance of the microgrid, whilst owning the asset. With Energy as a Service, the operator shifts from buying the equipment, to buying the outcome. EaaS allows customers to purchase only the power they receive, instead of the infrastructure generating it. So, who owns the infrastructure? That’s where AVK comes in.
Infrastructure funded, owned, and operated by AVK
Along with EaaS comes a data centre operator’s need for external funding. That’s where AVK is introduced into the process. We’re proud to now offer a funded service for on-site power generation for data centres via our new funding arm, AVK Capital. AVK Capital will fund and own, whilst Core AVK operates prime power with microgrid technology for data centres to become operational, up to eight years in advance.
It’s our contractual process that is the differentiator to our usual offering. The developer signs a Power Purchase Agreement (PPA) and pays per kWh as an operating expense. The data centre operator is therefore able to bypass the upfront investment as well as the asset ownership, alleviating the pressure on their books. AVK finances and owns the on-site power infrastructure directly. With this comes speed to power for the operator, as well as the financial freedom of having the CapEx disappearing from the balance sheet entirely.
What’s in it for you?
There are multiple benefits to accessing power using the route of Energy as a Service (EaaS). Let’s go through them.
Moving to your OpEx sheet
This structure has the biggest impact to your balance sheet. Suiting data centre developers of all sizes, from emerging companies to hyperscalers, removing the upfront investment that is required for BTM technology alleviates pressure and financial burden. Operating costs are a much less intimidating figure, meaning a developer can avoid debts and focus on making profit.
Bypassing ownership
Ownership of large technology assets comes with responsibilities; servicing and maintenance of the systems. Not only is this an additional monetary responsibility, but it is a requirement to ensure the technology is running at its optimal performance. This responsibility can be removed with our EaaS model – the assets are owned by AVK, meaning that maintenance requirements are off your to-do list.
Speed to Power
There’s no downplaying how valuable Speed to Power in data centre development is right now. With funded off-grid technology, data centre construction can begin much sooner without the years of waiting for a traditional grid connection. This means an operational data centre years before the alternative, meaning you can benefit from a faster route to profit.
Trusting AVK
We are the only power provider to be offering end-to-end power solutions, BTM solutions, and a funded option. Our extensive offering is something that we have enhanced over years of experience, and will be a true asset to your data centre operations.
Our end-to-end solutions are comprised of standby solutions, modular PowerPods, microgrid technology and ongoing servicing, along with fuel cells, battery technology and sustainable focuses such as managing carbon at source. There isn’t another company out there offering what we are, and it’s all informed and supported by our 37-year history in power solutions for data centres. All your power needs provided under one partner, with the skills and knowledge to bring innovation to your solution.
Our recent investment from Partners Group is allowing us to fund your power solutions, offering the Speed to Power that will give you the advantage in the market. If you’re interested, contact our team – we’ll start this process together.