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Data centers have become modern megaliths in a new world of infrastructure powering the next wave of innovation, and artificial intelligence (AI) is redefining how they’re designed and powered. As AI workloads intensify, they’re creating new demands for efficiency, resilient power delivery, and how we define energy strategies that will determine the future of digital infrastructure.

“Data centers have become the places where AI model training and deployment occur, and that role is central to recent growth in electricity demand,” cites The International Energy Agency (IEA).¹ Because so much of the load is IT equipment, the IEA also points out that “Servers account for around 60% of electricity demand in modern data centers, underscoring why power has become such a hot topic when it comes to global growth in technology.”

Those power needs are colliding with practical limits on grid expansion. Building new transmission or waiting for interconnection approvals can take years, so data-center owners are combining strategies to secure capacity quickly. Many remain grid‑connected while signing long‑term renewable energy contracts and adding battery back-up to smooth short‑term variability. As McKinsey & Company explains, “Operators are pairing grid connections with behind‑the‑meter solutions, hybrid systems and advanced controls to handle fast-growing demand and interconnection constraints.”³ Where speed-to-power is more urgent, some operators install behind‑the‑meter generation—often modular gas turbines or generator sets—because on‑site assets can deliver capacity faster than waiting for grid upgrades. Siemens Energy captures this point plainly: “One solution to this challenge facing the data center industry is on-site generation of electricity and cooling.”⁶

Batteries are now a standard part of that toolbox. They provide immediate response during disturbances and shave short peaks so mechanical generators aren’t taxed beyond what they are designed to do. As the article by Facilities Dive observed, “Flexible battery or generator solutions can help data centers power up faster, reduce grid impacts and keep their owners’ sustainability goals within reach.”⁸ In short, hybrid mixes of grid power, long‑term renewable purchases, batteries and on‑site generation are practical and increasingly common.

Power generation equipment is not immune from these changes. Power plants tasked with serving AI loads may be asked to cycle more often and operate across a wider load range than many traditional baseload or peaking plants—behavior that increases thermal and mechanical stress on turbines, generators, and the gear drives linking them. McKinsey & Company highlights the problem in their online article, “Power supply is becoming an issue in markets that have traditionally attracted clusters of data centers, which is driving interest in dedicated generation and hybrid systems.”⁴ That means gear designs need to cope with more starts/stops, ramping, and generally more variable torque profiles than in historical applications.

With these increased demands, availability and predictability have become even more critical when it comes to power generation. Data centers expect near‑continuous operation, and backup systems are fundamental to achieving that availability. The Lawrence Berkeley Lab report states plainly that “UPS batteries and backup generators are there to keep the data center powered during outages and that these systems are essential to ensure the extremely high levels of reliability that data centers must meet.”² For gear suppliers, that translates into customers demanding not only mechanical robustness but also rapid serviceability.

So, what should gear companies do? There are several practical moves that align product and service offerings with data-center power needs. First, emphasize durability in designs intended for high‑cycle, variable‑torque duty: stronger tooth profiles, improved bearings, advanced sealing and lubrication strategies, and conservative designs that can handle a wider thermal range to reduce risk of early failure. Second, make the product serviceable by offering rapid response offerings, like Philadelphia Gear’s Onsite Technical Services (OTS)™, and high-quality OEM parts to reduce downtime for repairs during critical outages. This includes the ability to serve mobile power solutions deployed from trailers in addition to traditional, fixed brick-and-mortar facilities. Third, add simple but reliable condition monitoring for both mechanical and lubrication systems including vibration, temperature, and acoustic instrumentation so customers can incorporate predictive‑maintenance programs. McKinsey and others point to procurement trends where buyers weigh total cost of ownership, scalability, and service readiness—factors gear companies can influence through design and aftermarket offerings.^3,4

There are also product-level opportunities beyond the gear drive itself for companies that can offer more than just off-the-shelf products and instead provide engineered system solutions. So, whether the end-user is uprating current systems, needs efficiency improvements, or does not have the expertise to build a broader power‑system solution, all of these represent a competitive opportunity for OEMs. GE Vernova and Siemens Energy both emphasize the value of integrated approaches that combine generation, controls, and lifecycle services for data-center power applications.^5,6

In short, AI data centers are increasing electricity demand and, importantly, changing how that power is delivered and how generation equipment should function in this new world. Gear companies that combine proven mechanical reliability with rapid service capability, and partnership-oriented equipment solutions will be best positioned to support power plants and the various on-site power solutions serving AI workloads.

“We’ve already started working with AI data centers looking for help in meeting their energy demands,” said Carl Rapp, President of Philadelphia Gear. “With over 130 years of experience supporting the energy industry, we’ve been side-by-side with our customers as their energy needs have grown and changed. And during that time, we’ve remained true to our roots as subject matter experts for critical power generation equipment. Our approach has always been to be a trusted advisor and build custom engineered products that solve specific challenges. So, whether it’s a new gear design or servicing the equipment over its lifecycle with aftermarket repair, parts, and service, we have built our business on running to and solving our customers’ most complex problems.”

Carl continued, “As a part of Timken Power Systems (TPS), Philadelphia Gear® is integrated within a network of manufacturing and service centers that provide electro-mechanical expertise for complex engineered systems that include gear drives, electric motors, generators, bearings, and control systems. For data center operators, expertise in a single discipline is no longer enough. That’s what TPS is all about, evolving alongside our customers’ needs to deliver broader, integrated capabilities that simplify operations and help their businesses run more efficiently.”

To learn more about Philadelphia Gear or TPS, visit our websites or scan the QR code to take a virtual tour.

Authors: Carl Rapp, president of Philadelphia Gear; and Rob Fisher, marketing & product manager for Philadelphia Gear.

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References

1. IEA — Energy and AI: Energy demand from AI: https://www.iea.org/reports/energy-and-ai/energy-demand-from-ai
2. Lawrence Berkeley National Laboratory, 2024 United States Data Center Energy Usage Report: https://eta-publications.lbl.gov/sites/default/files/2024-12/lbnl-2024-united-states-data-center-energy-usage-report_1.pdf
3. McKinsey & Company — AI power: Expanding data center capacity to meet growing demand: https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ai-power-expanding-data-center-capacity-to-meet-growing-demand
4. McKinsey& Company — How data centers and the energy sector can sate AI’s hunger for power: https://www.mckinsey.com/industries/private-capital/our-insights/how-data-centers-and-the-energy-sector-can-sate-ais-hunger-for-power
5. Siemens Energy — On‑site Power Generation for Data Centers (white paper): https://assets.new.siemens.com/siemens/assets/api/uuid:5d02c989-8681-4320-b4e6-5445fb1b9a60/sie-us-si-rss-data-centers-power-generation-whitepaper-en.pdf
6. GE Vernova — Gas Power Technology for Data Centers: https://www.gevernova.com/gas-power/industries/data-centers
7. Facilities Dive — Data centers seek flexible power solutions for resilience, sustainability: https://www.facilitiesdive.com/news/data-centers-seek-flexible-power-solutions-for-resilience-sustainability/753811/

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