As the digital economy expands, data centres are emerging as essential infrastructure - powering everything from AI models and streaming platforms to financial systems and cloud services. According to McKinsey & Company, global data centre workloads are set to nearly triple by 2030, with AI driving much of this explosive growth¹.

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This growth will drive a parallel surge in energy demand. But while data centres are often seen as energy-intensive, they’re also perfectly placed to become part of the energy solution.

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PowerSync Technologies helps data centres transform existing energy assets into revenue-generating infrastructure—enabling participation in energy markets while maintaining uptime, resilience, and ESG performance.

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The Energy Demand Surge – and the Opportunity It Creates

The chart below from McKinsey forecasts a steep rise in energy-intensive AI workloads, which will require data centres to scale power consumption significantly between 2025 and 2030.

This surge places increasing strain on electricity networks, but it also creates a significant opportunity: data centres can monetise their batteries, UPS systems, and load flexibility to help stabilise the grid and get paid for it.

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How Data Centres Can Participate

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1.       UPS-Based Frequency Control

Large UPS systems can reserve a small amount of capacity (e.g., 60 seconds in a 15-minute UPS) to provide rapid frequency response. This leaves ~84% of UPS capacity available for its core role thus protecting IT loads while enabling revenue from FCAS markets.

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2.      Backup Generation for Capacity Markets

Diesel or gas gensets can be offered into capacity programs such as the Interim Reliability Reserve(IRR) or Reliability and Emergency Reserve Trader (RERT), earning standby payments and activation fees when the grid needs extra supply.

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3.      Cooling and HVAC Load Flexibility

Non-critical cooling can be briefly curtailed or pre-cooled to shift demand during high-price or contingency events, providing demand response revenue without risking thermal limits for server halls.

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4.      Battery Storage & Wholesale Arbitrage

If a site has battery storage in addition to its UPS, it can charge from the grid during low-price periods and discharge during high prices, capturing wholesale arbitrage value while supporting FCAS or other ancillary services.

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5.      Integration with Onsite Renewables

Where rooftop solar or other onsite generation exists, PowerSync can coordinate dispatch to maximise value across both generation and flexibility markets.

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How PowerSync Helps Data Centres Monetise Flexibility

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1.       Intelligent Asset Orchestration

PowerSync’s platform spans Edge (on-site devices), Cloud (AI-driven optimisation), and Market(real-time dispatch and compliance). It integrates with your existing loads, UPS, backup gensets, and SCADA systems—no major hardware upgrades required.

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2.      Market Access with Full Compliance

We manage the full participation lifecycle across Frequency Control Ancillary Services (FCAS),wholesale arbitrage, and demand response handling integration, bidding, compliance, settlement, and reporting.

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3.      Revenue Optimisation Without Disruption

By reserving only a fraction of your UPS or storage for market participation, we ensure that sufficient capacity remains available for primary backup, ensuring zero operational risk.

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4.      Significant Financial Upside

Participating in the NEM can unlock more than $250,000–$300,000 per MW/year in additional revenue while supporting your ESG goals and reducing peak charges.

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With AI driving unprecedented demand for processing power and electricity, grid operators are increasingly turning to flexible, distributed assets to stabilise supply. By acting now, data centres can secure a first-mover advantage - capturing high-value returns while supporting energy security.

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1. What is a data center? McKinsey & Company. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-a-data-center

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