On-Site Power Generation
for the AI Era
Why Behind the Meter?
The Grid Problem
4-7 year interconnection timelines in PJM and ERCOT — AI companies can't wait half a decade for power
226 GW interconnection queue in ERCOT alone — 73% of which is datacenter load. Utilities are overwhelmed
Grid T&D charges rising 5-7% annually — on-site generation eliminates transmission and distribution costs entirely
Single points of failure — grid-dependent facilities are vulnerable to utility outages and congestion
The BTM Advantage
12-24 months to operational power — modular containerized solutions can deploy in as little as 12 months
Sub-$0.04/kWh achievable — operators already securing below-4-cent electricity through gas-to-power
99.99%+ uptime targets — on-site generation with N+1 or 2N redundancy meets hyperscaler SLAs
Modular scalability — add capacity incrementally from 5 MW to 500+ MW as demand grows
Gas-Fired Power Technologies
Combined-Cycle Gas Turbines
The gold standard for large-scale BTM power. Combined-cycle systems use waste heat from the gas turbine to drive a steam turbine, achieving up to 64% efficiency — nearly double simple-cycle. Ideal for 100+ MW baseload applications with continuous AI training workloads.
Capital cost: $2.2-2.5M per MW. Heat rate: 6,960 Btu/kWh. Major suppliers include GE Vernova, Siemens Energy, and Mitsubishi Power. Chevron and GE Vernova have partnered on a 4 GW deployment program through 2027.
Reciprocating Gas Engines
The fast-response workhorse of BTM power. Reciprocating engines achieve over 50% electrical efficiency with superior part-load performance — critical for variable AI workloads. Units start in under 5 minutes and maintain high efficiency even at 25% load.
Leading platforms include Jenbacher J920 FleXtra (10.6 MW per unit), Caterpillar G3520K (2.5 MW), and Wärtsilä modular systems. Meta's Socrates South project deploys 15 Caterpillar engines alongside multiple turbine configurations for 200 MW total.
Modular / Containerized Systems
Factory-built, rapidly deployable power in standard containers. VoltaGrid delivers 20 MW per containerized node scalable to 200+ MW. Rolls-Royce mtu 4000 Series offers 45-second fast-start capability with 84,000 hours between overhauls.
The fastest path to power — containerized solutions can deploy in 12-18 months with incremental expansion matching demand growth. Standard ISO container dimensions simplify logistics. Crusoe Energy pioneered this model, securing $11.6B to scale from 2 to 8 AI campus buildings.
Next-Generation Power Conversion
Solid Oxide Fuel Cells
Operating at 800-1,000°C, SOFCs use a solid ceramic electrolyte to convert natural gas directly to electricity without external reforming. Bloom Energy leads this market with 1.5+ GW deployed across 1,200+ sites globally. Electrical efficiency of 50-60% with CHP total efficiency reaching 85%+.
Rapid deployment behind-the-meter, fuel flexibility (natural gas direct input), and virtually zero NOx/SOx emissions make SOFCs a compelling complement to gas turbines for datacenter applications.
Molten Carbonate Fuel Cells
MCFCs operate at ~650°C and are optimized for utility-scale datacenter power. FuelCell Energy leads this space with their 1,250 kW and 2,500 kW systems — both capable of running on natural gas, biogas, and hydrogen blends up to 40% with no efficiency loss.
FuelCell Energy's partnership with SDCL Connect targets up to 450 MW of deployment for data centers. Their 100 MW Inuverse project in Korea begins 2027 for the country's largest datacenter complex.
Proton Exchange Membrane
PEM fuel cells operate at low temperatures (~80°C) using high-purity hydrogen, delivering quick startup and fast response times ideal for variable loads. Microsoft demonstrated a 3 MW PEM system with 48-hour continuous operation for datacenter backup power.
Currently best suited for backup and complementary power rather than primary baseload. Microsoft's Dublin partnership with ESB deployed a 250 kW green hydrogen system as the first hydrogen fuel cell supplying a European datacenter.
How BTM Power Works
Redundancy Configurations
N+1 Configuration — minimum for critical datacenter loads. All generation sized so one unit failure doesn't impact service
2N Configuration — two fully independent power systems, each supporting full load. Maximum availability for Tier III-IV
Islanded operation — complete grid independence during peak stress. Inverter-based controls manage voltage and frequency
Grid-connected hybrid — BTM supplements grid with islanding capability during outages. Fastest interconnection approval path
Integrated Cooling & Heat Recovery
Waste heat capture — combined-cycle and fuel cell systems generate significant recoverable heat for facility cooling
Absorption chillers — powered by waste heat, reducing mechanical cooling requirements and improving PUE to 1.09
Co-located generation — on-site placement reduces transmission losses and captures heat closer to generation point
District heating potential — excess heat can supply adjacent commercial or residential systems (e.g., Meta Odense: 100K MWh/year recovered)
Choosing the Right Solution
| Parameter | Combined-Cycle Turbine | Reciprocating Engine | SOFC Fuel Cell |
|---|---|---|---|
| Capacity Range | 100-400+ MW | 2.5-10.6 MW/unit | 100 kW - multi MW |
| Electrical Efficiency | ~60% | >50% | 50-60% |
| Startup Time | 30-60 minutes | <5 minutes | Hours (hot standby fast) |
| Capital Cost | $2.2-2.5M/MW | $0.7-1.5M/MW | $3-5M/MW |
| Deploy Timeline | 18-36 months | 15-24 months | 12-24 months |
| Part-Load Efficiency | Moderate | Excellent (to 25%) | Good |
| Emissions | Standard (CCS possible) | Standard | Near-zero NOx/SOx |
| Best For | Large baseload (100+ MW) | Variable loads, fast ramp | Clean power, quiet ops |
| H2 Ready | Blends available | Yes (Jenbacher) | Yes (direct NG or H2) |
The Path to Clean Power
Carbon Capture & Storage
90-95%+ CO2 capture rates now achievable. ExxonMobil is building a 1.5+ GW facility with over 90% capture. Google partnered on a 400 MW plant piping CO2 to deep saline aquifer storage.
Hydrogen Transition
All major platforms are hydrogen-ready. Jenbacher engines run on H2 blends today. FuelCell Energy systems accept 40% hydrogen with zero efficiency loss. Future-proofed for decarbonization.
Hybrid Renewable Integration
BTM gas provides 24/7 baseload reliability while co-located solar and wind reduce net emissions. Battery storage bridges intermittency. The hybrid model delivers both reliability and ESG progress.
The Nuclear Age
Light-Water SMRs
The most mature path to new nuclear. NuScale's 77 MWe module is the only SMR with full NRC design certification, with a 6 GW deployment agreement through ENTRA1 and TVA. GE Hitachi's BWRX-300 claims 60% cost reduction versus traditional reactors, with Ontario construction approved in 2025.
Light-water SMRs carry the lowest technology risk — they use proven reactor physics scaled down into factory-fabricated modules. Standard Power has committed nearly 2 GW of NuScale capacity for datacenter campuses in Ohio and Pennsylvania.
Advanced Reactors
Next-generation designs using molten salt, liquid sodium, and high-temperature gas coolants to achieve higher efficiency and inherent safety. Kairos Power's fluoride salt-cooled reactor secured a 500 MW deal with Google — the world's first corporate multi-SMR power purchase agreement, with first power by 2030.
TerraPower's Natrium sodium fast reactor (345 MW per unit) anchors Meta's historic nuclear commitment — two initial units plus rights for six more totaling 2.1 GW by 2035. X-energy's Xe-100 high-temperature gas reactor is progressing through DOE demonstration at Dow's Texas site.
Microreactors
Factory-built reactors in the 1-75 MW range designed for rapid, modular deployment. Oklo's Aurora Powerhouse (75 MW) anchors Meta's 1.2 GW advanced technology campus in Ohio, with early site work starting in 2026 and potential power generation by 2030.
Radiant Energy's Kaleidos (1-5 MW) has a 2028 deployment agreement with the U.S. military. NANO Nuclear's KRONOS MMR (45 MW high-temperature gas reactor, acquired from USNC) targets industrial and datacenter applications. The smallest footprint of any generation technology.
Hyperscaler Commitments
Meta — 6.6 GW total — the largest corporate nuclear deal in history. Oklo (1.2 GW), TerraPower (2.1 GW), and Vistra (existing capacity)
Google — 500 MW with Kairos Power — first corporate multi-SMR PPA. Initial 50 MW reactor via TVA by 2030, scaling to full fleet by 2035
Microsoft — 835 MW from Three Mile Island — 20-year PPA with Constellation Energy to restart TMI Unit 1 (now Crane Clean Energy Center) by 2028
Amazon — 1,920 MW from Talen Energy — $650M Susquehanna campus acquisition plus new SMR exploration in Pennsylvania
Path to Deployment
NRC licensing advancing — NuScale design certified, Kairos Hermes received first advanced reactor construction permit, TerraPower environmental approval issued
HALEU fuel supply scaling — DOE committed $2.7B for domestic enrichment. Centrus delivered 920+ kg by mid-2025; Nusano targeting 350 MT/year by 2029
First deployments 2028-2030 — Oklo targeting late 2027, Kairos Hermes 2 by 2030, GE Hitachi Darlington by 2029, TMI restart by 2028
Factory fabrication model — standardized modular construction targets cost reduction through serial production, with nth-of-a-kind units approaching conventional nuclear economics
Ready to Deploy Behind-the-Meter Power?
From site assessment and technology selection to engineering, procurement, and commissioning — Sourcerock delivers turnkey BTM power for datacenter developers and hyperscalers.