Baseload to Backbone:

How Aging Energy Sites Can Power Data Centers of the Future

In 2024, I worked closely with policymakers, stakeholders, and industry experts to help craft and pass “fast-track legislation” in New Hampshire, designed to expedite the permitting process for new energy facilities on existing sites. The legislation focuses on projects that meet specific criteria: having pre-existing interconnections to the power grid, demonstrating improvements in public health and safety, and contributing to overall system reliability. The goal was to address a pressing need—bringing next-generation energy technologies online faster to support grid stability and the clean energy transition.

At the time, the focus was on baseload power. Baseload generation—traditionally supplied by coal, nuclear, or natural gas—has long been the backbone of the grid, providing consistent and reliable electricity. As renewable energy sources like wind and solar grow in importance, grid operators face the challenge of balancing intermittent generation with the steady demand for electricity. That’s why we designed the fast-track process to encourage projects that could bridge this gap by integrating clean technologies into existing energy sites while improving reliability and safety.

But as I reflect on this legislation, I see a future where the most valuable use of these “fast-track” sites might not be traditional power generation at all. Instead, I believe they will be prime locations for data centers equipped with collocated generation and standby power capabilities. And here’s why.

The Strategic Advantage of Pre-Existing Interconnection

Interconnection to the power grid is a bottleneck for many energy projects across the country. It can take years to secure approvals and complete upgrades to bring new generation capacity online. By targeting sites that already have interconnections, the fast-track legislation bypasses this hurdle, making it far easier to deploy new facilities quickly. These sites were initially intended to house energy projects that could feed power directly into the grid, but interconnection has value beyond electricity generation.

Data centers, the backbone of our digital economy, are major power consumers. They require constant, reliable electricity, but they also face risks—grid outages, power fluctuations, and cyberattacks that could disrupt operations. Locating data centers on fast-track sites with existing interconnection points allows them to draw power directly from the grid while having access to onsite generation as a backup. This setup ensures operational resilience and reduces the risk of downtime.

Collocated Generation: More Than Just Backup Power

What makes this model so compelling is the potential to collocate clean or dispatchable generation alongside data centers. Natural gas turbines, hydrogen fuel cells, or even advanced battery storage systems could be integrated into these facilities to serve as both a primary energy source and a backup when the grid experiences instability. In essence, these data centers could function as microgrids—capable of operating independently or feeding excess power back into the grid during peak demand.

This dual functionality—providing critical infrastructure for data and acting as a grid-supporting asset — could be a win-win for utilities, businesses, and consumers. As extreme weather events and cybersecurity threats grow more frequent, having distributed energy assets like these could improve grid reliability and reduce the frequency of large-scale blackouts.

Unlocking Economic Potential

New Hampshire is uniquely positioned to benefit from this model. The state’s fast-track sites, many of which are located near population centers or industrial hubs, could attract significant investment from tech companies and energy developers alike. Data centers already represent a multi-billion-dollar industry, and the demand for low-latency computing and cloud storage is only increasing. Companies like Amazon, Google, and Microsoft are constantly searching for locations with reliable power and interconnections—exactly what these fast-track sites offer.

Moreover, collocated generation could lower operational costs for data centers by reducing their reliance on expensive grid power during peak demand periods. Utilities would benefit as well, as these facilities could provide grid stabilization services, effectively turning what were once single-use power plants into multi-purpose energy hubs.

Preparing for the Energy Future

The legislation we passed in 2024 was a significant step toward addressing New Hampshire’s immediate energy needs, but its potential is much greater than we initially imagined. As baseload generation evolves and the lines between power producers and consumers blur, these fast-track sites could become essential infrastructure in the broader transition to a resilient, clean, and digitized energy future.

In many ways, this shift exemplifies how good policy can adapt to new challenges. What began as an initiative to bring clean baseload power online more quickly may ultimately help establish New Hampshire as a hub for innovation in energy and data. That’s the beauty of thoughtful, forward-looking legislation: its impact often extends far beyond the problems it was originally designed to solve. And in this case, I believe we’ve only just scratched the surface.

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