Onsite Power Generation

‍INDUSTRY CHALLENGE

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As demand for AI, HPC, and digital services accelerates, reliable and scalable power has become the most critical factor in determining data center viability. Hyperscale and colocation providers now require hundreds of megawatts of capacity, and traditional utility infrastructure often cannot keep pace due to delays, capacity restraints, or regional transmission congestion. In some markets, reliance on the grid alone is no longer feasible. Onsite power generation via natural gas turbines, fuel cells, reciprocating engines, or renewables with storage is becoming essential to meet performance, resilience, and sustainability expectations.

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APPROACH

LEDG works with property developers to perform comprehensive due diligence, often evaluating multiple sites at a time for future hyperscale campuses. One project involved a developer looking to build an 800MW campus and needing to determine the feasibility of 340-400MW of onsite natural gas power generation to support a mix of colocation and hyperscale tenants.

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LEDG leads multi-layered power and infrastructure analysis that includes:
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• Evaluation of existing utility capacity, substation proximity, and grid reliability,
• Coordination with regional utilities to assess timelines for grid expansion,
• Feasibility assessments of onsite power generation options, including gas turbines and combined heat and power (CHP) systems, also known as cogeneration, simultaneously produce electricity and thermal energy from a single fuel source such as natural gas, biomass, or coal.  
• Integrating onsite power generation electrical topology with developer's standard electrical design standards, ensuring interoperability and redundancy across all power sources,
• Analysis of backup power strategies, renewable integration potential, and battery storage options,
  Financial modeling aligned with sustainability and operational goals  

RESULTS

LEDG’s due diligence equips developers with a comprehensive report to evaluate and select viable sites capable of supporting high-density, high-reliability workloads. This analysis ensures each location can meet near-term power demands while offering long-term energy flexibility—enabling developers to scale site capacity and bring tenants online at their desired pace. The in-depth onsite power generation evaluation provides the data needed to compare locations across technical, economic, and regulatory factors, helping shape a winning investment strategy and go-to-market position.
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