The Growing Demand for Data Centers and the Role of High-Reliability Components in Ensuring Infrastructure Resilience

INTRODUCTION

Data centers are essential infrastructure for today’s digital world, powering everything from cloud services to artificial intelligence. According to Lawrence Berkeley National Laboratory, U.S. data center load growth is projected to double or triple in the next few years, rising from 176 TWh in 2023 to 325-580 TWh in 2028. These projections are in line with findings from the U.S. Department of Energy’s article, "Clean Energy Resources to Meet Data Center Electricity Demand." The article highlights a dramatic rise in electrical demand, as shown in the figure below.

Figure 1. U.S. Electricity Demand (1970-2035)

As the demand for digital services grows, the need for reliable energy distribution in these applications is critical. Transformers and switchgear are at the core of the power distribution systems that supply these data centers, and ensuring their dependability is essential. Transformers and switchgear require high-quality components to assure consistent performance in the delivery and protection of the distribution system under extreme duty cycles and in some cases, harsh environmental conditions.

This paper explores the importance of transformers and switchgear in data centers and highlights the significance of high-reliability components, particularly epoxy bushings, in ensuring equipment durability and performance

THE IMPORTANCE OF HIGH-RELIABILITY COMPONENTS IN TRANSFORMERS AND SWITCHGEAR

Data center applications present some unique challenges in comparison to typical residential or commercial applications, including:

• Duty Cycle: 24-hour operation in data centers tends to require higher continuous loads in comparison to typical cyclical loading in most residential and many commercial applications;
  
  
• Consistent operational performance: Data centers rely on consistent and calibrated power levels to maintain operations of the computing power and servers that provide digital services. Power interruptions or surges are harmful to data center computing power and a failure of a transformer or component could damage servers, leading to failures in data center operations and the digital services that depend on them; and
  
  
• Higher operating loads: As data centers evolve, the equipment requires ever increasing power to meet the needs of existing and future installations. New generations of microchips pack more transistors into a smaller space, leading to higher processing speeds and increased heat generation, which requires more energy to operate computing and cooling operations at optimal performance; this is especially true with advanced chips designed for demanding tasks like artificial intelligence, which need high computational power and therefore draw more electricity. These developments dictate that insulating components must operate at higher consistent current loads and temperatures.

These operational conditions dictate that transformers, switchgear and the components within the equipment must consist of high-reliability materials designed for these applications to prevent interruptions and failures. With all components are essential to the function of transformers and switchgear, insulating components including bushings, bus insulators, and other miscellaneous insulating elements, are essential to the longevity and protection of the system in various conditions. One of the most critical components of transformers and switchgear is the bushing, which allows electrical conductors to pass through grounded barriers, such as transformer tanks, while maintaining electrical insulation.

Epoxy insulating components are increasingly seen as the ideal solution for transformer and switchgear applications due to their superior electrical insulation properties, mechanical strength, and design flexibility. Epoxy insulating components ensure that transformer and switchgear equipment can operate for longer periods without failure, reducing the risk of downtime in data centers. Given the critical role this equipment plays, the quality of insulation components is paramount and directly impacts the overall reliability and lifespan of the equipment.

THE ROLE OF EPOXY BUSHINGS IN TRANSFORMER RELIABILITY

Epoxy bushings and insulators are some of the most important components in transformer and switchgear designs. These components allow electrical conductors to pass through the grounded transformer tank or switchgear structure while providing robust electrical insulation. The H-J Family of Companies is a leader in the production of epoxy components, offering diverse designs tailored to the needs of transformer and switchgear manufacturers.

H-J Epoxy Bushings and Insulators Features:

• Constructed using high-performance epoxy materials that provide superior dielectric and mechanical strength and environmental durability.
  
  
• More robust than traditional insulation types such as porcelain. They are less likely to chip, crack or degrade over time, making them ideal for continuous operation in demanding environments such as data centers.
  
  
• Epoxy formulations are available for enclosed or outdoor applications in continuous operation up to 155°C.
  
  
• Offer excellent surface tracking and hydrophobic properties.
  
  
• As a cast component, epoxy offers design flexibility and customizable capacity, allowing for more sophisticated component geometries to meet the needs of the application, such as the need for increased creep distances for contaminated atmospheres.
  
  
• The one-step casting process eliminates the need for assemblies as seen in porcelain bushings and insulators. The one-piece direct molding of epoxy insulation eliminates leak paths associated with gasketed assemblies. This feature is of primary importance in liquid-filled transformer applications.
  
  
• H-J manufactures all epoxy components in North America, maintaining local supply for most raw materials. This allows for shorter supply lines, reducing lead times and shipping costs. This commitment to nearshoring enhances product reliability and sustainability.
  

GOVERNMENT AND INDUSTRY COLLABORATION IN ADVANCING TRANSFORMER TECHNOLOGIES

In 2022, the US government authorized the Department of Energy (DOE) to utilize the Defense Production Act (DPA) to accelerate the domestic production of critical electric grid and clean energy components. While this program awaits funding from Congress, the DOE has also utilized other programs like the 48C tax credit to spur expansion and innovation in the domestic transformer supply chain.

The DOE has recognized the importance of high-reliability components, including epoxy bushings, in ensuring the resilience of the U.S. power grid. Collaborative efforts between the DOE, utilities, and manufacturers have led to advancements in transformer technology and its components. The DOE has played a key role in facilitating the development of high reliability transformers and components to meet the growing demands of data centers

CONCLUSION

According to a Department of Energy-backed study published in 2024, data center power demand will constitute up to 12% of total US electricity consumption by 2028, while data center power demands are estimated to grow 15 percent annually from 2023 to 2030. As this massive growth takes place, the need for reliable and high-performance transformer and switchgear equipment grows. Epoxy components produced by the H-J Family of Companies are essential in meeting the challenges posed by the rapid expansion of data center requirements. These quality components improve the overall durability, efficiency, and lifespan of transformers and switchgear deployed for these applications. The H-J Family of Companies is committed to continuous research and development e􀆯orts to expand our offerings to meet the ongoing evolution of these market needs.

REFERENCES

1. U.S. Department of Energy, 2024, “Clean Energy Resources to Meet Data Center Electricity Demand“, https://www.energy.gov/policy/articles/clean-energyresources- meet-data-center-electricity-demand
   
   
2. Lawrence Berkeley National Laboratory, 2024, “2024 United States Data Center Energy Usage Report“, lbnl-2024-united-states-data-center-energy-usagereport. pdf
   
   
3. National Renewable Energy Laboratory, 2024, “Major Drivers of Long-Term Distribution Transformer Demand“, https://researchhub. nrel.gov/en/publications/major-drivers-of-long-term-distribution-transformer demand
   
   
4. U.S. Department of Energy, 2024, "R&D Efforts to Address Transformer Supply", https://www.energy.gov/oe/rd-efforts-address-transformer-supply
   
   
5. McKinsey & Company, 2024, "How data centers and the energy sector can sate AI’s hunger for power," https://www.mckinsey.com/industries/private-capital/ourinsights/ how-data-centers-and-the-energy-sector-can-sate-ais-hunger-for-power
   
   
6. McKinsey & Company, 2024, “AI power: Expanding data center capacity to meet growing demand", https://www.mckinsey.com/industries/technology-media-andtelecommunications/ our-insights/ai-power-expanding-data-center-capacity-tomeet- growing-demand
   
   
7. U.S. Department of Energy, 2022, “DOE Actions to Unlock Transformer and Grid Component Production“, https://www.energy.gov/policy/articles/doe-actionsunlock- transformer-and-grid-component-production