Thought Leadership
White Paper
Powering the
Data Center of the Future
Mike Jackson
Global director of product, data center and distributed IT software
Ed Spears
Technical marketing manager
Forrest Secosky
Commercial marketing manager
Bryan Weitzel
Segment manager, data centers
The need for data, storage and connectivity is rising
exponentially, driven by the demand and the expectation
from both businesses and consumers for faster, more
resource-intensive services. At the same time, the rapid
advancement of cloud computing has paved the way for hybrid
architectures that have shifted resources away from on-premise
systems and placed greater demands on data center infrastructure.
And the changing nature of business and evolving technology
models have given rise to new architectures for distributed IT and
“edge” computing applications, expanding the definition of the data
center itself as organizations adopt distributed architectures.
Meanwhile, generative artificial intelligence (AI) stands poised to
transform the industry as businesses realize new opportunities to
harness this game-changing technology. Analyst firm IDC predicts
that worldwide spending on AI solutions, including software and
related hardware as well as IT and business services, will grow to
more than $500 billion by 2027.
Finally, the growing awareness around global climate change has
given businesses incentives and urgency to reduce the carbon
footprint of their data centers as part of broader environmental,
social and corporate governance (ESG) initiatives. Energized by this
opportunity, data center operators are seeking to optimize their
energy usage while investing in new technologies for the benefit of
their customers.
The common thread is power
As the landscape for data centers continues to transform,
power will be a unifying factor in supporting shifting
dynamics, from the growth of AI and increasing cloud
adoption to the evolving edge. Because of this, the accelerating
need for energy to support the growth of data centers presents an
opportunity to modernize power infrastructure to meet a diverse
set of challenges.
This is particularly true when it comes to the growth of generative
AI. Training a single AI model, such as OpenAI’s GPT-3, can use up
to 10 gigawatt-hours, roughly equivalent to the amount of electricity
1,000 homes in the United States use in a year, according to
research from the University of Washington. Gartner estimates
that AI could consume up to 3.5% of the world’s electricity by 2030,
placing additional demands on data centers and the energy grid.
As this growth happens, data center operators will face greater
pressure to maximize the efficiency, resiliency and sustainability
of infrastructure while managing a more complex set of resources
across an expanding number of facilities. Thankfully, new
technologies and approaches are emerging that can not only help
data center operators better meet these requirements but also
modernize their data centers to prepare for future needs.
In this whitepaper, we will explore these innovations as well as
approaches to leveraging both physical and digital infrastructure to
help create and power modern data centers.

Grey space solutions deliver operational efficiency and
uptime
The grey space is the backbone of the data center’s
operation and refers to any technology providing back-end
infrastructure. Grey space solutions are essential to distributing
power throughout the data center as well as ensuring uptime during
unplanned power events. Whether building a new, AI-ready data
center or upgrading existing infrastructure, it is imperative that data
center operators consider investing in emerging innovations to help
meet the demands of AI and other advancing trends.
Uninterruptible power supplies (UPSs) – As the cornerstone of
power protection in the data center, the UPS serves as the bridge
to generator power in the event of an unplanned outage. Growing
power demands and the need for more IT infrastructure such as
GPUs, servers and storage have paved the way for UPSs that are
more efficient and provide higher power density in a smaller footprint.
Additionally, UPS solutions are available that offer greater flexibility
in available battery technology and chemistry as well as the ability to
deploy new systems quickly to meet the rapid demand for scalability.
For operators seeking to modernize existing infrastructure rather
than replace what already exists, some manufacturers offer
modernization programs that allow for the installation of new and
improved electronics and batteries into the frame of the existing
UPS. This can be an attractive option for those operators who have
aging equipment and need to upgrade quickly without fully replacing
installed systems.
Medium-voltage switchgear – Medium-voltage switchgear
provides centralized control and protection of medium-voltage power
equipment in the data center involving generators, motors, feeder
circuits and transmission and distribution lines. These solutions help
protect personnel from arc faults on both grounded and ungrounded
systems. Operators should look for solutions that offer enhanced
safety and operating features, maintenance-free medium-voltage
compartments, smaller footprints, superior ratings and, importantly,
the ability to meet both IEEE C37.20.9 and IEC 62271-200 safety
standards. Importantly, some newer medium-voltage switchgear
solutions can adapt to handle different voltages without requiring
replacement, providing critical flexibility in an era of dynamic energy
demands.
Molded case circuit breakers – Circuit breaker technology
continues to advance in its ability to keep employees and other
personnel safe from arc flash events and solutions are available in
smaller footprints for easy adaptability no matter the application or
requirement. Recent innovations in circuit breaker technology include
innovative trip units that incorporate digitalization, giving users the
ability to monitor breaker health and thermal status in real time.
Additionally, these units feature embedded communications and
metering to reduce costs and push actionable data through power
distribution monitoring and control. Using these advancements, data
center operators can generate data to help optimize performance
and power consumption and use predictive diagnostics to uncover,
diagnose and stop power outages before they happen.
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Floor power distribution – Floor standing or cabinet PDUs are
often used in raised and non-raised floor applications to take
incoming power and distribute it to an individual rack or groups of
racks. These systems optimize power utilization and availability down
to the branch circuit level as well as address needs for isolation,
voltage transformation, harmonic reduction and voltage regulations,
while offering unique monitoring and diagnostic capabilities to help
facilitate load balancing and warn of potential threats.
Because of the changing power needs driven by AI at the rack level as
well as other innovations, cabinet PDU technology continues to evolve
with higher levels of flexibility and configurability, allowing operators
to design systems that meet their unique requirements.
Battery energy storage – Containerized battery energy storage
systems enable data centers to store energy so it can be used on
demand as a backup power source or to participate in selling energy
back to the grid. These systems can also be used to maximize
consumption of renewable energy that is locally produced to power
buildings or charge electric vehicles.
Powering the white space
The data center’s white space refers to anything that supports
the purpose of IT, and can include components such as
servers, storage and networking equipment as well as racks
and cooling systems. The coming years will see the transformation
of the white space as businesses invest in critical infrastructure to
support generative AI, new edge and hybrid computing architectures
and continued growth of the cloud. Power management technology
is advancing to support these trends and ensure the resiliency, safety,
security and sustainability of critical systems. Such solutions include:
Lithium-Ion batteries – In recent years, lithium-ion battery
technology has become an attractive alternative to traditional VRLA
batteries in UPSs supporting critical IT equipment, as lithium-ion
can deliver an extended lifespan and rapid recharging capabilities
without compromising essential backup runtime requirements. These
advantages not only save operators time and money but also mitigate
risks over the entire UPS lifecycle.
IT racks – The IT rack can help organize and secure IT equipment
in everything from high-density data centers to edge environment.
Advancements in rack technology worth considering include tool-
less mounting, flexible designs and accessories that make for easier
planning, faster deployments and more efficient maintenance.
Rack power distribution – Rack power distribution units (PDUs)
have advanced significantly in recent years, with new features that
can help operators save time, reduce costs and simplify power
management. Examples of recent innovations in rack PDU technology
include higher power densities, with PDUs that pack more outlets
into the same amount of space, including outlets that accommodate
higher amperages; universal input, enabling operators to deploy a
single PDU SKU across a global data center network without having
to mix and match PDUs to serve multiple locations; and network
connectivity allowing for remote monitoring and management of
power at the rack level.
As with UPSs, some manufacturers now offer the opportunity to
retrofit existing PDUs with modern equipment inside an existing PDU
frame, removing the need for operators to replace their current PDUs
wholesale as their needs change.
Liquid cooling – The amount of heat generated by data center
infrastructure will grow exponentially as operators invest in higher
density infrastructure to support generative AI, such as GPUs,
servers and storage. This will require operators to explore innovative
approaches to traditional, fan-driven cooling systems. One promising
trend that has emerged is liquid cooling, which improves heat
transfer using dielectric fluids.
Currently, two types of liquid cooling that show great promise
for operators. Direct-to-chip cooling uses specialized liquid to
extract heat at the source, i.e., directly in contact with CPUs and
GPUs. Immersion cooling requires full submersion of the server in
nonconducting, dielectric fluids, which helps improve overall efficiency
of cooling. Both of these options offer distinct advantages and will be
imperative as data centers experience higher power requirements
through the proliferation of GPU servers.
Because liquid cooling is nascent in its evolution and many data
centers may not be equipped to adopt certain approaches, operators
seeking to modernize may determine that a hybrid approach using
both air and liquid cooling is best to meet current needs while they
explore new innovations.
Track busway – A structured track busway system is essential
for distributing power safely and reliably within the data center
and offers multiple advantages over traditional cable and conduit.
Modern track busway systems provide high-speed monitoring, key
electrical performance metrics and proactive management of power
usage and availability. Additionally, these systems have evolved
to offer considerable flexibility and configurability, both essential
considerations in modernizing and future-proofing data centers to
support emerging innovations. For example, modern track busway
systems can include a multitude of features such as tap-off boxes
that are easily adapted to different layouts, with multi-range ampacity
bus to support a wide range of power loads without requiring
replacement.
UPSs supporting distributed environments – The shift of more
IT resources to distributed edge environments has created new
opportunities for data center operators and led to a redefinition
of the data center itself. At the same time, UPSs supporting these
environments have evolved with innovations that make it easier for
operators to manage and secure distributed infrastructure. Recent
innovations include the addition of lithium-ion batteries; new digital
capabilities for remote management and monitoring without the
need for on-site IT support; and enhanced network connectivity
enabling remote firmware upgrades and integration with leading
hyperconverged infrastructure and virtualization platforms.
The role of digitalization
As modern data centers integrate more infrastructure
to support the growing needs of AI, cloud computing,
virtualization and the energy transition, digital tools will
play an increasing role. By integrating dedicated network cards
with either new or existing power management equipment like UPSs
and PDUs, operators can leverage advanced software platforms to
optimize performance, monitor critical infrastructure and enhance
sustainability.
Data center operators have, to date, relied on point solutions to
manage the infrastructure under their control, including data center
infrastructure management (DCIM) software, disaster avoidance
software and electrical power monitoring system software. However,
new technologies are emerging that combine these disparate
capabilities under a single converged platform, allowing operators
to invest in tools they need for today’s challenges while laying a
foundation to add new functionality as needs evolve.
Operators should seek solutions that can unite asset management, IT
and operational technology device monitoring, power quality metrics
and advanced electrical supervision in a single application. This can
help data centers better manage, monitor and control a broad range
of infrastructure assets, including UPSs, PDUs, busway, switchgear,
generators, cooling equipment, battery storage, solar equipment and
other technologies.
With these advancements, data center operators can leverage a
single platform for capabilities that were previously only available by
purchasing separate software products, creating inefficiencies and
additional time spent on integration and management of separate
platforms. Now, regardless of where infrastructure sits—in the central
data center or distributed environments—operators can get a full
view of infrastructure—both grey space and white space—and add
new functionality as needs change.
Digitalization will have a sizeable impact on helping data center
operators improve decision-making while enhancing the efficiency,
sustainability and safety of critical infrastructure. Operators can
collect and analyze data on power usage and other key metrics in
real time to optimize their energy consumption and delivery, a critical
benefit for enhancing and reporting on sustainability. The more data
they can collect and analyze, the better equipped operators can be to
improve performance, mitigate potential power events, analyze and
report key sustainability metrics and improve asset utilization both in
the data center and across edge environments.
The importance of cybersecurity
With more devices in the data center becoming network-
connected and generating increasing amounts of data, these
connections create opportunities for data center operators
but also risks in the form of potential cyber threats. Threats
will continue to grow as businesses continue to harness generative
AI in daily operations, opening the door to new threats that may have
crippling effects on business and operations.
According to IBM’s 2023 Cost of a Data Breach Report, the average
global cost of a data breach in 2023 was $4.45 million, a 15% increase
over three years, making it imperative that data center operators
leverage connected infrastructure designed with the highest levels of
cybersecurity protection.
Data center operators must address cybersecurity to minimize the
threat of operational downtime, data loss, impacts on lifecycle costs
and brand reputation. That means seeking out technologies that have
been created with cybersecurity as an integral component of the
product development process, from inception through to deployment
and maintenance. It also means working with vendors that continually
enforce cybersecurity best practices via training, threat modelling,
requirements analysis, implementation, verification, and ongoing
support. Ideally, the vendor should work with independent, third-party
standard bodies such as UL (Underwriters Laboratories) to establish
measurable cybersecurity criteria and secure certification that products
have been tested to meet these criteria.
Finally, because the threat landscape is ever-changing, operators must
continue to be diligent in working with vendors and service providers
to understand what vulnerabilities may exist in their infrastructure and
taking the necessary steps to address these threats.
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A Data Centers as a Grid approach
One of the biggest opportunities data centers face is
balancing the demands of the energy transition with
the increasing amounts of energy needed to fuel the
generative AI boom. As operators seek to modernize data center
infrastructure, they should embrace Eaton’s Data Centers as a Grid
approach, which incorporates sustainability into modernization
efforts in a way that not only reduces the carbon footprint of data
centers but also makes them an active part of the energy transition.
Eaton’s Data Centers as a Grid approach combines new energy
management capabilities, data analytics and sophisticated controls
with existing infrastructure to support a bi-directional flow of energy
to and from the grid. Data centers can use this approach to better
support renewable resources and offset the cost of infrastructure
upgrades by earning revenue through frequency response and
other grid services.
About the authors
Mike Jackson
Global director of product, data center and distributed IT software
Mike Jackson is global director of product, data center and
distributed IT software for Eaton. He currently leads a global
software product management, marketing and commercial
operations team responsible for development and go-to-market
strategy of data center and distributed infrastructure applications.
Ed Spears
Technical marketing manager
Ed Spears is a technical marketing manager for Eaton. A 40-year
veteran of the power-systems industry, he has experience in UPS
systems testing, sales, applications engineering and training — as
well as working in power-quality engineering and marketing for
telecommunications, data centers, cable television and broadband
public networks.
To learn more about Eaton’s innovative approaches and solutions
for data center modernization, visit Eaton.com/DataCenter
Eaton
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United States
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© 2024 Eaton
All Rights Reserved
Printed in USA
Publication No. WP154001EN / GG
April 2024
Using Eaton’s Data Centers as a Grid approach, data centers
can leverage the inherent energy storage capabilities of existing
infrastructure, such as UPS battery systems, to create a grid-
interactive data center that increases sustainability, delivers more
value, provides essential backup and substantially reduces operating
costs. This allows operators to efficiently and effectively coordinate
multiple energy sources, adopt more renewables, anticipate energy
needs and participate in grid programs to earn new revenue streams.
Conclusion: Modernizing for the future
As the landscape for data centers continues to evolve, innovations
like generative AI will transform the industry and require investment
in new solutions and approaches to power management. By
investing in solutions for both the grey space and white space as
well as digital technologies, data center operators can position
themselves to meet the resiliency and sustainability opportunities of
today while preparing for what the future holds.
Forrest Secosky
Commercial marketing manager
Forrest Secosky is the commercial marketing manager for Data
Centers at Eaton. Prior to this role, he was the strategic lead for
Modular Solutions including substations, data centers, power
assemblies, and nova reclosers.
Bryan Weitzel
Segment manager, data centers
Bryan Weitzel is a segment manager for data centers focused on
intelligent power distribution systems. In over ten years with Eaton,
he has held leadership positions in quality, engineering, projects,
strategy, account management, and marketing. Prior to joining
Eaton, Bryan held roles of increasing responsibility for over fourteen
years at Westinghouse Electric Company, LLC.
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