Boom Supersonic, a company founded in 2014, is on a mission to create the world’s first commercial supersonic airliner. With the goal of significantly increasing the speed of air travel, up to twice the speed of today’s passenger jets, Boom Supersonic is also striving for a smaller environmental impact. The company has been dedicated to developing high-performance engine technology necessary for sustaining supersonic flight.
While Boom Supersonic has not yet unveiled its groundbreaking jet, it has recently discovered a new and potentially lucrative use for its innovative technology: generating electricity for data centers that power the artificial intelligence industry. Many data centers require flexible, continuous energy similar to that provided by combined-cycle natural gas turbines. These turbines efficiently generate electricity by burning gas to spin turbines and capture the associated heat for further turbine rotation. Despite being one of the most efficient options for dispatchable baseload power in terms of fossil fuel generation, the demand for these turbines is increasing, leading developers to explore alternative solutions.
In a significant move, Boom Supersonic secured a $1.25 billion deal with Crusoe, a developer constructing data centers for the artificial intelligence startup OpenAI. As part of the agreement, Crusoe will receive 29 jet-engine gas turbines from Boom Supersonic to be strategically positioned at data centers throughout the United States. This collaboration exemplifies the efforts of developers and tech companies to find power sources for the growing number of data centers across the country.
The expansion of natural gas capacity to meet the power needs of data centers is not confined to the United States alone. Globally, there has been a surge in new proposed natural gas projects, with over 1,000 gigawatts of gas-fired power in development worldwide. The United States is leading this trend, with a significant portion of the new capacity dedicated to powering data centers. However, the rush to build additional natural gas generation facilities poses serious environmental consequences, contributing to increased carbon dioxide emissions.
Despite initial expectations that AI facilities would primarily rely on renewable energy sources like solar and wind power, developers are increasingly turning to fossil fuels to meet the soaring demand for electricity. This shift towards natural gas generation for data centers is anticipated to add millions of metric tons of carbon dioxide to the atmosphere in the coming years, highlighting the urgent need for cleaner energy alternatives.
As the demand for computing power continues to grow, data center developers are facing challenges in securing sufficient electricity from traditional utilities. Consequently, many developers and tech companies are opting to generate power on-site to meet their energy requirements. This approach, known as “behind-the-meter,” has gained popularity among data centers, with at least 46 facilities utilizing this method to generate a combined capacity of 56 gigawatts.
Companies like Bloom Energy, specializing in behind-the-meter fuel cells for data centers, have witnessed a significant increase in demand for their products. The shift towards on-site power generation is no longer merely a contingency plan but has become a crucial business strategy for many companies. With states like Texas emerging as key players in this energy transition, the reliance on natural gas for data center power generation is expected to continue growing, underscoring the importance of exploring cleaner and more sustainable energy solutions for the future. Titus, a company specializing in providing power solutions for data centers, has announced a unique approach to powering their facilities. Instead of opting for traditional gas turbines, Titus will be using hundreds of smaller gas-powered generators called reciprocating engines. These engines, similar to those found in passenger cars, are better suited for managing transient loads, or rapid fluctuations in power demand commonly seen at data centers.
According to Jeff Ferguson, the president of Titus, the decision to use reciprocating engines over gas turbines was a strategic one. Not only are these engines faster to start up and stop, but they also offer better flexibility in managing power demand. While some experts argue that internal combustion engines like reciprocating engines are less efficient and produce more emissions compared to gas turbines, Titus believes that the benefits outweigh the drawbacks in this specific application.
The use of reciprocating engines for baseload power alongside solar and wind sources is part of a growing trend in the energy industry. In Texas, where nearly 58 gigawatts of natural gas power are in various stages of planning and construction, data centers are increasingly turning to microgrids powered by gas generators. These projects, like OpenAI’s Stargate campus and Meta’s data center, are designed to provide reliable power without relying on regional energy grids.
However, concerns have been raised about the environmental impact of these projects. Some critics argue that relying on gas-powered generators for baseload power can have negative consequences for the climate, especially if the waste heat is not captured and utilized. Projects like Project Jupiter in New Mexico, which aims to build a massive data center powered by gas turbines, have faced opposition from environmental groups concerned about carbon emissions and compliance with climate laws.
Despite the potential challenges, the demand for data centers and artificial intelligence products continues to grow, driving investments in new power infrastructure. As companies like Titus explore innovative solutions for providing reliable power to data centers, the industry is likely to see a shift towards more sustainable and efficient power sources in the future.
