Nick Lawrence, Chief Product Officer of Ceres
Globally, electricity grids are facing increased strain due to the combination of rising demand, aging infrastructure and the need to integrate renewable energy sources.
When a new opportunity needs a reliable, constant, power source, developers are facing issues with either slow grid connections (up to 10 years in the UK) or long project delays associated with traditional solutions (7-8 years).
Data centres, which are dependent on large-scale GPU arrays, consume a lot of energy. According to the UK National Grid Electricity System Operator, data centre electricity consumption is set to increase to just under 6% of the UK’s total consumption by 2030. However, data centres are essential to countries who want to remain competitive in the age of data and AI. The challenge extends beyond powering the AI infrastructure; it involves the need of doing it quickly and in an environmentally friendly manner.
The urgency of connecting these data centres to an energy source, preferably a clean and sustainable one, is also at odds with the slow ‘time to power’ associated with traditional, electric grid connections. AI data centres require swift, flexible energy solutions that can keep pace with their rapid development timelines.
Solid Oxide Fuel Cell (SOFC) systems are a clear solution to this urgent need. They are both capable of running efficiently on natural gas and can be manufactured at scale in dedicated factories and delivered onsite in a faction of the time compared to other options. They are also modular, so have redundancy built-in, and generate power directly where it’s used and so don’t incur any electricity transmission losses.
Whilst one of the chief advantages of SOFCs is their fuel flexibility, being able to operate on a variety of fuels, including biogas, ammonia, and hydrogen, they were originally developed to operate efficiently on natural gas. We believe that by providing solutions that can use existing fuels such as natural gas today, whilst providing fuel optionality for future, presents a very strong use case for the industry.
Natural gas is not only widely available and is supported by extensive transmission networks, but also offers a cost-effective way to rapidly meet the energy demands of AI data centres.
A natural partner
Natural gas is an ideal partner for SOFC, with benefits on many levels. With extensive national transmission networks already in place, natural gas can be quickly and efficiently distributed to where it is needed most.
Importantly, the design of SOFCs allows for easier and lower-cost carbon capture, making them a more attractive alternative to gas turbines, even when powered with by natural gas.
The global supply of natural gas is abundant. Securing a reliable energy source for the long term and its transmission ensures significantly less energy loss during transport compared to electricity, which experiences substantial losses due to its conversion process. While its cost-effectiveness enhances its appeal, particularly for energy-intensive operations such as AI data centres.
Advancements in Ceres’ SOFC technology are driving down production costs, increasing scale and reducing environmental impacts. As manufacturing processes improve and economies of scale are achieved, the cost of producing SOFC units decreases. This is then met with the relative low cost of natural gas supply.
The affordability of natural gas as a source of energy is even more advantageous for systems and processes that, like data centres, require a constant, uninterrupted power supply to maintain 24/7 operations. The continuous and reliable power output of SOFCs meets the non-stop demands of global digital infrastructure, ensuring that data centres can function effectively around the clock.
This is why tech giants like Google or Microsoft have been exploring the use of SOFCs to power their facilities, increasing energy efficiency and decreasing reliance on grid electricity through research and pilot programs. In the case of Microsoft, the company has been exploring fuel cell technology since 2013 and, in 2020, it made part of their commitment to become carbon negative by 2030.
Equinix, which owns and operates over 260 International Business Exchange data centres worldwide, has also deployed alternative energy sources, including SOFCs, in some of its 73 locations across the globe. In Europe, the company has fully incorporated fuel cell technologies to reduce its carbon footprint.
While SOFC technology is still in early adoption stages, these examples show that large tech companies are actively exploring its potential to create cleaner, more reliable energy solutions for their data centres. This movement aligns with the industry’s increasing focus on reducing energy consumption and increasing the use of renewable energy.
A cleaner future
SOFCs produce significantly fewer greenhouse gas emissions when compared to traditional power methods to further reduce the carbon footprint of the energy generation process.
Ceres is at the forefront of this technological evolution, working to enhance efficiency and reduce the costs of SOFC technology. Through strategic partnerships, and a commitment to research and development, Ceres is set to introduce advanced SOFC solutions that promise to be transformative for powering AI data centres. These developments will provide a cost-effective and environmentally responsible way to meet the burgeoning energy needs of the digital age.
This article appeared in the June 2025 issue of Energy Manager magazine. Subscribe here.