The AI boom is driving an explosion in diesel generator capacity. (Latitude Media)
Data center diesel capacity nearly tripled from 20 GW in 2018 to 55 GW in 2024 as hyperscalers multiplied. For now, these generators are cheaper to run than batteries—around $300 less per kilowatt—but they’ll likely cost more in the long run.
Tech companies pitched these generators as a last-resort backup, but operators are increasingly firing them up outside of emergencies; for example, a quick switch to dodge grid disturbances can turn into hours of continuous use.
The dirty: The Tier 2 diesel generators used by many data centers comply with older EPA emissions standards—they lack modern soot filters and pump out ~9X more nitrogen oxides than current Tier 4 standards. These make up over 70% of Virginia's 27 GW fleet.