Data centers—whether enabling edge computing or supporting hyperscale applications—are the backbone of our digital economy, powering AI, machine learning, and high-performance computing. However, their energy consumption is projected to skyrocket in the coming years, creating challenges for utilities and grid infrastructure.
As global energy demands surge, regulators like the National Telecommunications and Information Administration (NTIA) and the Department of Energy (DOE) are grappling with how to meet these needs while fostering growth, resilience, and security. In September, these agencies issued a Request for Information (RFI) to explore the economic and security policy considerations critical to sustainable data center growth.
In response to the RFI, Laura Schepis, NEMA’s Executive Director of Regulatory and Industry Affairs for the Grid, emphasized how unprecedented demand is driving opportunities for innovation:
“Most data center energy demand stems from server consumption and cooling. Data centers have significant opportunities to deploy demand-based grid flexibility and energy-efficient solutions, such as broadening operating temperature limits, scheduling AI model training for off-peak hours, and using power-cycler software to power down idle servers when possible. Time-of-use rates enhance the opportunities to deploy these types of tactics and technologies.”
Among the most promising advancements in data center technology is liquid cooling, which directly addresses the thermal management needs of high-performance systems. Compared to traditional air cooling, liquid cooling at the chip level is far more efficient at dissipating heat, enabling data centers to reduce energy consumption by up to 30%-40%, improve reliability, and increase performance.
Liquid cooling is so new to the data center industry that it is accelerating a fundamental paradigm shift, making tighter collaborations and partnerships of the utmost importance.
Under the leadership of CEO Beth Wozniak—Chair of NEMA’s Board—nVent is advancing liquid cooling technology through a new collaboration with NVIDIA to deploy scalable solutions for high-density data centers. The two industry leaders are focused on customized systems that optimize thermal management for NVIDIA-powered facilities while streamlining design and implementation processes.
nVent Director of Product Management for Data Solutions, Jason Matteson, highlighted his company’s role in driving progress as data centers race to update their infrastructure:
“From architecting to maintaining and monitoring, we are focused on leaning into being a solution provider, not just an equipment provider.”
nVent’s focus on comprehensive solutions extends to broader industry collaboration. The company actively contributes to consortiums such as the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), an international society of heating, refrigerating and air-conditioning professionals, and the Open Compute Project (OCP), which works to streamline data center design through open-source standards . nVent also uses NEMA’s electrical enclosure ratings to ensure sufficient water and air separation. By addressing the design of rack construction, enclosures, manifolds, connectors, and hoses, nVent is helping to standardize and scale infrastructure to meet the surging demand for data center capacity.
Looking ahead, NEMA is proud to sponsor the Green Building Initiative’s second annual Better Buildings: Data Center Seminar next year. This event will bring together data center designers, owners, and operators to share innovative strategies for improving the sustainability and resilience of data centers during a time of unprecedented demand.
As data centers continue to expand their role in the digital economy alongside the rise of AI, they bring both significant challenges and transformative opportunities. The electroindustry is leading the way by developing cutting-edge technologies and advocating for policies that promote harmony between data centers and energy systems. NEMA looks forward to continuing its work with regulators, manufacturers, and industry stakeholders to drive progress toward a connected, electrified, and sustainable future.