182. Broken grids and Datacenters load growth - Jun25

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Jun 9, 2025

Jereme Kent, an engineer leading One Power, discusses innovative approaches to America’s aging power grid. He reveals the struggles utilities face in adapting to modern demands from industries like data centers while handling supply chain congestion. Kent champions modular transformer designs for better efficiency and advocates for long-term power purchase agreements for renewables. He emphasizes the crucial role of behind-the-meter batteries in stabilizing energy supply, challenging outdated utility models toward a decarbonized, customer-centric future.

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ADVICE

Adopt One Transformer Design

Use a single standard transformer design with modular blocks to simplify and speed deployment.
Reject custom solutions that delay projects; standardized parts mean faster production and easier maintenance.

INSIGHT

Utility Spending Discourages Efficiency

Utilities design bespoke solutions to solve unique site problems but also because their financial incentives reward higher capital spending.
This discourages cost-cutting and innovation, locking the industry into expensive, slow custom builds.

ANECDOTE

XAI Data Center Exemplifies Standardization

The XAI data center in Tennessee was built fast using an inventory of standardized transformers and substations.
Standardized equipment enables rapid construction and flexibility to shift resources between projects.

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We have recently witnessed spectacular black outs: South Australia 2016, Texas Uri 2021, California 2020-21-25 and Iberia 2025. We are not even mentioning fragile grids in the Global South. We will do an episode on those blackouts later this year.

The U.S. electrical grid, now over a century old, struggles to meet modern demands. Utilities are slow to adapt, and supply chains are congested, posing challenges for accommodating new load developments like datacenters and AI while ensuring reliable, affordable power for existing customers.

Jereme Kent, an engineer with practical expertise, is tackling these issues head-on. As the leader of One Power (an Ohio-based industrial power company) Kent champions customer-centric, decarbonized power grids. One Power delivers innovative, renewable-focused energy solutions, empowering industrial clients to manage costs and emissions through on-site wind power, EV charging hubs, and other advanced infrastructure. This approach challenges the outdated utility model, embodying a "Utility 2.0" vision.

A key innovation lies in transformer design: shifting from bespoke to modular, standardized systems to enhance efficiency and scalability. Kent also highlights the advantages of renewable energy, noting that power purchase agreements (PPAs) for renewables can extend up to 20 years, compared to just three years for gas. Additionally, small behind-the-meter batteries play a critical role in stabilizing energy supply and optimizing costs.

Digital tools and software are another focus, where Kent offers unexpected insights, emphasizing practical, streamlined solutions over complex systems. He points to SMUD, a progressive utility in Sacramento, California, as a model for grid management. SMUD’s forward-thinking strategies have yielded impressive results, setting a benchmark for others to follow.

In the realm of transformer technology, Kent advocates for "dumb simplicity," inspired by the German motto “Stumpf ist Trumpf” (simple is best). Surprisingly, he notes that animal interference, such as birds, is a leading cause of transformer failures, underscoring the need for robust, straightforward designs.

To borrow from the Rolling Stones, “You can’t always get what you want, but you might just get what you need.” Kent’s pragmatic innovations are paving the way for a resilient, sustainable energy future.

We thank Abloco Energy, premier European lessor of mobile batteries, for supporting the show.