From the grid to the gate: Powering the third energy revolution

Harnessing renewable energy to meet the growing power demands of AI-driven data centers

7 OCT 2025 | Technology and innovation

Robert Taylor, sector general manager of power design services and power delivery, and Henrik Mannesson, sector general manager of energy infrastructure, authored this blog.

A paradigm shift is happening right in front of our eyes. In the 18th and 19th centuries, Great Britain used coal to power the Industrial Revolution, propelling the transition to machine manufacturing – the first energy revolution. Then came the second energy revolution, in the United States, when the oil boom of the 20th century fueled unprecedented advancements in vehicles and electricity.

Today, the rapid growth of artificial intelligence (AI) is ushering in the third energy revolution: the generation, conversion and distribution of the energy needed to power the massive amounts of data we’re consuming. How to generate the necessary energy required to power data centers and how to efficiently move that energy down the power path – from the grid to the gates of the processors – is quickly becoming the most exciting challenge of our times.

Changing distribution levels

As the computing power required by AI data centers scales, data centers architectures are undergoing a major change. Typically, servers stack on top of each other in data center computing racks, with power-supply units (PSUs) at the bottom. Alternating current (AC) is distributed to every server rack where a PSU converts it to 48V and then down to 12V. Point-of-load converters in the server then take it down to the processor gate core voltages.

With the advent of generative AI and the subsequent addition of more servers to process information, racks now need significantly more power. For example, entering a question into a large language model (LLM) requires 10 times the amount of power as entering the same question into a search engine. These increased power levels are pushing power architectures to the limit.

A sidecar setup in a data center

Because of this, data center operators are reimagining ways to move the AC to direct current (DC) conversion out of the server rack altogether to create space for more power and more servers in a single computing, or IT, rack. One such approach moves the PSUs into their own separate rack (called a sidecar) that sits beside the IT rack. The ultimate goal, however, is to have a separate power room that will distribute the high-voltage DC across the entire server hall. 

Meeting power demands with solar energy

As data centers require more power to support growing and evolving workloads, renewable energy might just be the answer. Solar is becoming an increasingly viable and affordable energy source in many parts of the world. Coincidentally, data center customers are committing to 100% renewable energy within their companies, and this commitment must be reflected in the data centers they use. Solar can not only help data center customers meet their sustainability goals, but also offers a fast way to deploy more energy generation. 

Semiconductors are at the center of the solar power conversion process, making these technologies key to meeting data center power demands. Efficient power conversion and accurate sensing technologies are crucial to making solar a reliable source of energy for the grid.

Energy storage to maximize solar output

Even though data centers operate every hour of every day, solar energy is only available during day time. So how will solar energy help power data centers when the sun isn’t shining? That’s where battery energy storage systems (ESS) become a critical piece of the puzzle, making sure the energy is available and can be used at any time when needed.

Batteries are already an essential component of the grid, effectively storing and releasing large amounts of electricity throughout the grid, and now they’re being used specifically for data centers. Battery management systems within an ESS directly monitor battery cells and assess the amount of energy within, measuring the voltage and determining the state of charge and state of health of the battery to help ensure there is necessary power available.

In the age of artificial intelligence, data is the new currency, and it’s more valuable than ever. As such, something must power – and sustain – it. We used coal to kickstart factories, and oil to advance automobiles; and now, renewable energy can help us address the growing power needs of data centers in the future.

Related company blog posts

Building tomorrow's innovations with today's edge AI-enabled devices
11 Nov 2025 | Technology and innovation

Building tomorrow's innovations with today's edge AI-enabled devices

Edge AI technology is making devices more efficient, accessible and accurate – and that’s only the beginning

From the grid to the gate: Powering the third energy revolution
07 Oct 2025 | Technology and innovation

From the grid to the gate: Powering the third energy revolution

Harnessing renewable energy to meet the growing power demands of AI-driven data centers

Beyond the mask: How DLP® technology is enabling new computing solutions with advanced packaging
30 Sep 2025 | Technology and innovation

Beyond the mask: How DLP® technology is enabling new computing solutions with advanced packaging

The movement toward advanced packaging within the semiconductor industry requires a parallel evolution in lithography — and DLP technology is the key to achieving it.

View all

Media contact

Reporters and editors can contact TI’s media relations team at: mediarelations@ti.com
To contact another group at TI, please visit the TI Contact Us page.