Equinix Inc., a digital infrastructure company, said it is working with energy providers to develop new ways of generating reliable and sustainable electricity for its global data centers.
The move comes as global electricity consumption is projected to rise by 4% annually through 2027, according to the International Energy Agency. Growth is being driven by increasing electrification, data center expansion fueled by artificial intelligence (AI), and renewed industrial manufacturing. This surge is adding pressure to existing power grids and utility providers.
“Access to round-the-clock electricity is critical to support the infrastructure that powers everything from AI-driven drug discovery to cloud-based video streaming,” said Raouf Abdel, EVP of Global Operations at Equinix.
Abdel added that as energy demand grows, the company sees both an opportunity and a responsibility to support the development of reliable, scalable, and sustainable energy infrastructure.
“By working with our energy partners, we believe we can support the energy needs of our customers and communities around the world by helping to strengthen the grid and investing in new energy sources,” he said.
Equinix said it is taking a diversified approach by supporting grid improvements, investing in onsite power solutions, and backing the development of advanced technologies. The company is funding transmission upgrades with utility partners, including the construction of new substations and emergency backup systems. It is also investing in fuel cells and natural gas to boost operational reliability while adding capacity to local grids.
Looking ahead, Equinix is focusing on advanced nuclear technologies that can provide stable and clean energy. These next-generation systems are designed with simplified features and enhanced safety measures, which the company believes can help power its data centers and support broader energy needs.
In 2024, Equinix became the first data center operator to sign an agreement with Oklo, a small modular reactor company, to procure 500MW of energy from its Aurora powerhouses. The company also signed a preorder agreement with Radiant for 20 Kaleidos microreactors, which are portable units that can be deployed quickly and integrated with onsite infrastructure. In the Netherlands, Equinix signed a Letter of Intent with ULC-Energy for a power purchase agreement of up to 250 MWe. ULC-Energy is partnering with Rolls-Royce SMR, which is developing a 470 MWe small modular reactor. In addition, Equinix announced a preorder power agreement with Stellaria for 500 MWe to expand its data centers across Europe. Stellaria is developing molten salt reactors that can recycle spent fuel and minimize waste.
Equinix is also expanding its use of fuel cells, which can provide cleaner onsite energy. The company has worked with Bloom Energy for more than a decade and plans to deploy more than 100MW of solid-oxide fuel cells across 19 data centers in six US states. The installations are expected to help reduce carbon emissions and water use.
Equinix said these steps show its strategy to prepare its infrastructure for rising global energy demand while supporting the growth of AI-driven applications.