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Microgrids are Getting Big. Are They Still Microgrids?

Welcome to the era of the mega microgrid. 1 GWh bioenergy microgrid platform unveiled

by Elisa Wood

mega microgrid
Huawei Digital Power’s Red Sea microgrid. Photo courtesy of Huawei
August 15, 2025
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About a decade ago, microgrids experienced an identity crisis. Microgrid conferences often sidetracked into debates over what exactly a microgrid is and is not.

The Department of Energy soon quelled the debate by issuing a definition.

But the definition is again being called into question. And we can blame AI.

Microgrids used to be, well, micro. A 5-MW microgrid was considered sizeable. But now microgrids are being designed for data center hyperscalers that need hundreds of megawatts to serve AI. That’s not micro.

1 GWh bioenergy microgrid platform unveiled

An example landed in my mailbox this morning. Washington-based bioEnergy Development unveiled a 1 GWh microgrid platform designed for AI computing and crypto mining. Each microgrid contains modular waste-to-energy systems fueled by wood residues and cattle manure that produce dispatchable baseload power. The modules are typically configured into 1.5 MWh to 1 GWh microgrids.

Like many microgrid systems, this one offers speed to power, a coveted attribute in an era when utility-scale generation can take many years to develop and interconnect to the grid. It’s a technology that’s ready now, not exploratory. In fact, bioEnergy describes its system as a local, scalable alternative to “waiting years for centralized micro nuclear power generation.” It’s also 5-10% of the cost of micro nuclear, the company says.

The system contains stackable or mobile 40-foot containers built in a factory. They work by converting biowaste into syngas used to produce electricity for a behind-the-meter microgrid or to export to the grid.  Biochar and biocarbon are other byproducts, which the company says can be used for carbon sequestration and carbon replacement products. The system also produces soil amendment additives.

“AI and High-Performance Computing (“HPC”) need reliable, price-certain power now,” said Gary Bartholomew, bioEnergy chairman & CEO. “Our containerized bioreactors turn various biomass and residuals into watts at the source-solving grid constraints while cleaning up two of the hardest waste streams on the planet.”

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Other mega microgrid projects

Other mega microgrids are in the works, as well. Enchanted Rock was a company early out of the gate with a large microgrid project for Microsoft in San Jose, California. China’s Huawei Digital Power has built a 400-MW microgrid in Red Sea New City, Saudi Arabia, that uses solar plus storage.

Are these really microgrids? 

 I argue that they are. The DOE definition does not specify a size, but says only that they be comprised of “a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island mode.”

So yes, they are microgrids. A new kind: the mega microgrid.

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