--- title: Xendee Whitepapers | A Guide to Meeting Energy Demand for Data Centers description: The exponential growth of data center energy demand, particularly driven by advancements in Artificial Intelligence (AI), has emerged as one of the most pressing challenges for energy infrastructure globally. image: https://xendee.com/hubfs/data-center-thumbnail.jpg --- [Skip to the main content.](https://xendee.com/guide-to-powering-data-center#main-content) [![XENDEE](https://xendee.com/hs-fs/hubfs/XENDEE.png?width=1094&height=140&name=XENDEE.png "XENDEE")](https://xendee.com?hsLang=en) [![Dark Logo](https://xendee.com/hs-fs/hubfs/Dark%20Logo.png?width=414&height=66&name=Dark%20Logo.png "Dark Logo")](https://xendee.com?hsLang=en) - Solutions - [DESIGN (Engineering Software)](https://xendee.com/design) - [DISCOVER API (Multi-Site Screening)](https://xendee.com/discover) - [OPERATE (Control Software)](https://xendee.com/operate) - [Modeling Services](https://xendee.com/modeling-services) - Use Cases - 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[Data Centers](https://xendee.com/data-centers) - [Developers/EPCs](https://xendee.com/epcs) - [OEMs](https://xendee.com/oems) - [Consultants](https://xendee.com/consultants) - [Government](https://xendee.com/government) - [Academic/Research](https://xendee.com/academic-research) ##### Engineering Software Feasibility and detailed modeling of distributed energy systems to meet financial objectives using Xendee’s sophisticated, standardized, and repeatable approach. [![Design-2](https://xendee.com/hs-fs/hubfs/Design-2.png?width=55&height=55&name=Design-2.png) DESIGN Pricing Professional Licenses](https://xendee.com/pricing/design?hsLang=en) - [DESIGN Academic Pricing](https://xendee.com/pricing/academic) - [DISCOVER API Add-on (Multi-Site Screening)](https://xendee.com/discover#demo) ##### Control Software Based on your project structure and needs, OPERATE pricing can be based on your cost savings, installed capacities, or we can develop a project jointly. [![operate](https://xendee.com/hs-fs/hubfs/operate.png?width=55&height=55&name=operate.png) OPERATE Pricing Validate Energy Savings](https://xendee.com/operate?hsLang=en#demo) ##### Technical Services Xendee experts can support you in data collection, tariff modeling, model setup and runs, optimization interpretation, results reporting, operational optimization, etc. [![MS-Icon-WhiteTransparent-128](https://xendee.com/hs-fs/hubfs/MS-Icon-WhiteTransparent-128.png?width=55&height=55&name=MS-Icon-WhiteTransparent-128.png) Modeling Services Explore Support Packages](https://xendee.com/modeling-services?hsLang=en#demo) ##### Xendee Corporation - [News & Press](https://xendee.com/news-press) - [Case Studies](https://xendee.com/case-studies) - [Cybersecurity](https://xendee.com/cybersecurity) - [Contact Us](https://xendee.com/contact-us) ##### Research & Innovation - [Publications](https://xendee.com/innovation) - [Industry Blog](https://xendee.com/insights/tag/insights) - [2026 Microgrid Report](https://xendee.com/2026-microgrid-market-survey) - [EV Report](https://xendee.com/industry-survey-report) - [Xendee Youtube](https://www.youtube.com/@xendee/videos) ##### Customers - [Our Customers](https://xendee.com/our-customers) - [Customer Webinars](https://xendee.com/insights/tag/webinar-series) ##### About Us - [FAQ](https://xendee.com/faq) - [Leadership Team](https://xendee.com/our-team) ##### Xendee University - [XU Week 2026](https://xendee.com/xendee-university-week) - [Modeling Courses](https://xendee.com/xendee-university) - [Modeling Videos](https://xendee.com/modeling-videos) ##### Join Xendee University 2027 Complete the form to get notified immediately when our call for speakers and registrations arrive for XU Week 2027. 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[![Design-2](https://xendee.com/hs-fs/hubfs/Design-2.png?width=55&height=55&name=Design-2.png) DESIGN Pricing Professional Licenses](https://xendee.com/pricing/design?hsLang=en) - [DESIGN Academic Pricing](https://xendee.com/pricing/academic) - [DISCOVER API Add-on (Multi-Site Screening)](https://xendee.com/discover#demo) ##### Control Software Based on your project structure and needs, OPERATE pricing can be based on your cost savings, installed capacities, or we can develop a project jointly. [![operate](https://xendee.com/hs-fs/hubfs/operate.png?width=55&height=55&name=operate.png) OPERATE Pricing Validate Energy Savings](https://xendee.com/operate?hsLang=en#demo) ##### Technical Services Xendee experts can support you in data collection, tariff modeling, model setup and runs, optimization interpretation, results reporting, operational optimization, etc. [![MS-Icon-WhiteTransparent-128](https://xendee.com/hs-fs/hubfs/MS-Icon-WhiteTransparent-128.png?width=55&height=55&name=MS-Icon-WhiteTransparent-128.png) Modeling Services Explore Support Packages](https://xendee.com/modeling-services?hsLang=en#demo) ##### Xendee Corporation - [News & Press](https://xendee.com/news-press) - [Case Studies](https://xendee.com/case-studies) - [Cybersecurity](https://xendee.com/cybersecurity) - [Contact Us](https://xendee.com/contact-us) ##### Research & Innovation - [Publications](https://xendee.com/innovation) - [Industry Blog](https://xendee.com/insights/tag/insights) - [2026 Microgrid Report](https://xendee.com/2026-microgrid-market-survey) - [EV Report](https://xendee.com/industry-survey-report) - [Xendee Youtube](https://www.youtube.com/@xendee/videos) ##### Customers - [Our Customers](https://xendee.com/our-customers) - [Customer Webinars](https://xendee.com/insights/tag/webinar-series) ##### About Us - [FAQ](https://xendee.com/faq) - [Leadership Team](https://xendee.com/our-team) ##### Xendee University - [XU Week 2026](https://xendee.com/xendee-university-week) - [Modeling Courses](https://xendee.com/xendee-university) - [Modeling Videos](https://xendee.com/modeling-videos) ##### Join Xendee University 2027 Complete the form to get notified immediately when our call for speakers and registrations arrive for XU Week 2027. [![operate-icon-solar](https://xendee.com/hs-fs/hubfs/operate-icon-solar.png?width=55&height=55&name=operate-icon-solar.png) Register for XU Week 2027 Secure Your Spot](https://xendee.com/xendee-university-week?hsLang=en#register) ##### [![XU-Week-Promo-Image-Mega-Menu-v2](https://xendee.com/hs-fs/hubfs/XU-Week-Promo-Image-Mega-Menu-v2.jpg?width=311&height=200&name=XU-Week-Promo-Image-Mega-Menu-v2.jpg)](https://xendee.com/xendee-university-week?hsLang=en#register) ##### Xendee Whitepaper Library: ### A Guide to Meeting Energy Demand for Data Centers with Distributed Energy and Future Small Modular Reactors ![data-center-whitepaper-thumbnail-image](https://xendee.com/hs-fs/hubfs/data-center-whitepaper-thumbnail-image.jpg?width=287&height=371&name=data-center-whitepaper-thumbnail-image.jpg)   ## Download the Whitepaper ##### The Data Center Power Surge: AI and Beyond The rapid growth of data center energy demand, driven by the rise of AI, poses significant challenges for energy infrastructure. By 2030, global data center power consumption is expected to rise by 160%, potentially accounting for up to 8% of U.S. electricity demand. AI servers, with their high computational power, consume significantly more energy—up to 10.2 kW per server—than traditional systems. Grid constraints, particularly in high-density areas like Northern Virginia’s "Data Center Alley," exacerbate the problem, with transmission bottlenecks and aging infrastructure delaying grid upgrades. Microgrids powered by Distributed Energy Resources (DERs) provide a viable solution, enhancing energy security, reliability, and power quality while reducing reliance on centralized grids. However, how you approach a Microgrid solution for a data center project is key to success. A phased approach leverages current DERs, such as renewables and CHP systems, to meet immediate needs while preparing for future integration of Small Modular Reactors (SMRs) as scalable, low-carbon baseload power. This strategy addresses short-term energy demands and ensures sustainable growth. Using Xendee’s advanced microgrid modeling platform and Mixed Integer Linear Programming (MILP), case studies in Santa Clara, CA, and Ashburn, VA, demonstrate optimized energy investments, OPEX reductions of 60-80%, and significant CO₂ emission cuts while ensuring long-term scalability. ##### Different Approaches to Powering Data Centers with Microgrids ![data-center-white-paper-image-2](https://xendee.com/hs-fs/hubfs/data-center-white-paper-image-2.png?width=800&height=609&name=data-center-white-paper-image-2.png) To illustrate the benefits of an effective multi-year strategy, this analysis compares three distinct approaches to addressing the rising energy demands of data centers: 1. **Utility-Only Case:** In this scenario, no investments in DERs are made during the project. Energy demands are met solely through existing utility infrastructure for the next 20 years. 2. **Utility with SMR only Case:** In this scenario, no significant investments in DERs are made prior to the availability of SMRs. Energy demands are met solely through existing utility infrastructure until 2035\*, when SMRs are deployed to provide power. This approach assumes reliance on grid electricity until SMRs are available, which exposes the system to increasing utility costs (also due to system upgrades) and potential carbon penalties as electricity prices rise. 3. **Multi-Year Approach:** This scenario strategically deploys CHP systems and other DERs, such as battery storage, starting in 2025 to meet immediate energy demands. By 2035, SMRs are introduced to supplement and enhance the existing DER infrastructure. This phased approach leverages DER technologies to minimize operational costs, reduce exposure to rising utility rates, and align with decarbonization goals. Please note that this approach also allows for other renewables such as photovoltaics (PV), or wind, but in the case analyzed, PV or wind was not economically attractive, and thus, not selected by the algorithm. Xendee’s platform supports this phased strategy by designing bankable Microgrid systems that lower costs, reduce CO₂ emissions, and enhance energy reliability and resilience. This ensures that DER systems installed today can seamlessly augment future SMR deployments, creating scalable, sustainable solutions for growing data center demands. ##### Results and Analysis Download the whitepaper to access the detailed analysis and results, which highlight the financial and environmental advantages of this strategic, location-tailored approach to DER and SMR integration. The illustrated approach aligns with decarbonization goals while ensuring financial viability, providing a flexible blueprint for sustainable, resilient energy infrastructure across varying regional conditions. ![data-center-whitepaper-thumbnail-image](https://xendee.com/hs-fs/hubfs/data-center-whitepaper-thumbnail-image.jpg?width=287&height=371&name=data-center-whitepaper-thumbnail-image.jpg)   ## Download the Whitepaper Solutions Solutions - [DESIGN (Engineering Software)](https://xendee.com/design) - [DISCOVER API (Multi-Site Screening)](https://xendee.com/discover) - [OPERATE (Control Software)](https://xendee.com/operate) - [Modeling Services](https://xendee.com/modeling-services) - Use Cases - [Data Centers](https://xendee.com/data-centers) - [Developers/EPCs](https://xendee.com/developers) - [OEMs](https://xendee.com/oems) - [Consultants](https://xendee.com/consultants) - [Government](https://xendee.com/government) - [Academic/Research](https://xendee.com/academic-research) Pricing Pricing - [DESIGN Professional Pricing](https://xendee.com/pricing/design) - [DESIGN Academic/Research Pricing](https://xendee.com/pricing/academic) - [DISCOVER API (Multi-Site Screening)](https://xendee.com/discover#demo) - [OPERATE Controller Pricing](https://xendee.com/operate?hsLang=en#demo) - [Modeling Services](https://xendee.com/modeling-services?hsLang=en#demo) Resources Resources - [News & Press](https://xendee.com/news-press) - Research & Innovation - [Publications](https://xendee.com/innovation) - [Industry Blog](https://xendee.com/insights/tag/insights) - [2026 Microgrid Report](https://xendee.com/2026-microgrid-market-survey) - [EV Report](https://xendee.com/industry-survey-report) - [Xendee Youtube](https://www.youtube.com/@xendee/videos) - Customers - [Our Customers](https://xendee.com/our-customers) - [Customer Webinars](https://xendee.com/insights/tag/webinar-series) - [Case Studies](https://xendee.com/case-studies) - [Microgrid Glossary](https://xendee.com/glossary) Xendee Corporation Xendee Corporation - Xendee University - [XU Week 2026](https://xendee.com/xendee-university-week) - [Register for XU Week 2027](https://xendee.com/xendee-university-week#register) - [Modeling Courses](https://xendee.com/xendee-university) - [Modeling Videos](https://xendee.com/modeling-videos) - [Cybersecurity](https://xendee.com/cybersecurity) - About Us - [FAQ](https://xendee.com/faq) - [Leadership Team](https://xendee.com/our-team) - [Contact Us](https://xendee.com/contact-us) [![Light Logo](https://xendee.com/hubfs/Light%20Logo-1.png)](https://xendee.com?hsLang=en) - [Terms of Service](https://xendee.com/terms) - [Privacy Policy](https://xendee.com/privacy-policy) © 2026 Xendee [X](https://twitter.com/xendee)[Linkedin](https://www.linkedin.com/company/xendee-corporation/)[YouTube](https://www.youtube.com/channel/UCRHNViGSj4_-ngI9Jb7pk0g) Return to top