These are the times that make energy innovators rub their hands together in anticipation. Problem and opportunity await them in almost equal measure. Their creative thinking is in high demand.
Today’s problem? It’s hard to build new, large-scale power. Renewables face loss of tax incentives and a hostile federal government. And all power plants — fossil fuel and renewables — encounter various development challenges that can take years to overcome.
Then there’s the opportunity: Demand for electricity is higher than it’s been in decades.
In short, the world needs more power but it’s hard to build.
Where microgrids fit in
Microgrids are emerging as a solution because they can be installed relatively quickly and avoid interconnection delays.
But microgrids are also changing — being reinvented for the times.
A new microgrid introduced by industry giants Eaton and Siemens offers a good example.
The companies came together after noting some troubling market activity. They saw data center developers rushing into long-term energy contracts in a kind of frenzy born out of a perception that power is becoming scarce. Some of the deals have raised eyebrows, such as the reopening of the Three Mile Island nuclear plant.
The modular, mega microgrid
With these problems in mind, Eaton and Siemens developed a gas-fired microgrid that fast-tracks development and construction by as much as two years. It’s built in a modular fashion, allowing blocks of power to be added over time as the data center’s business expands. And while it’s a microgrid by definition – because it’s built onsite and can operate independent of the grid or connected to it – it is not “micro” in size. Siemens and Eaton anticipate serving data centers that need as much as 1 GW.
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The Eaton/Siemens solution also moves beyond just providing power by offering modular development for the data center as well, so that the two sides can be built in sync.
Equally important, the microgrid is designed to be what Eaton calls “a good grid citizen.” It can provide services to the grid when connected. Not connected, it takes pressure off an overstrained grid, freeing up power for others to use. This could help data centers burnish their less-than-favorable reputation. Communities increasingly oppose new data centers in part because they fear they’ll drive up consumer electricity costs. A recent Heatmap Pro survey registered strong opposition to data centers among US voters. Power plants aren’t usually welcome by communities either, but even they fared better than data centers in the survey.
I learned about the Eaton/Siemens microgrid in a recent podcast interview with Juan Colina, data center IT segment leader at Eaton and Jim Mozell, senior director of strategic partnerships at Siemens Energy. The podcast will be released to the public on Spotify and Apple on Sep 17, 2025. It is already available to members of the Energy Changemakers Community who gain access one week before the public.
Check out these other energy innovations that have caught our attention:
- How Community Solar is Crossing Borders to Reduce Electric Bills
- 24 Beehive Microgrids Planned for North Carolina in Response to Last Year’s Hurricane Helene
- DERs and the Abundance Agenda: What Comes After Federal Funding Falls Short
- Solar on Wheels: How a Family-Run Startup is Transforming Driveways into Clean Power Stations
