Data Centers as Dispatchable Loads to Harness Stranded Power

• Published in: IEEE transactions on sustainable energy 2017-01, Vol.8 (1), p.208-218
• Main Authors: Kim, Kibaek, Yang, Fan, Zavala, Victor M., Chien, Andrew A.
• Format: Article
• Language: English
• Subjects: Biological system modeling; Cloud computing; Computation; Computer centers; Data centers; Economic incentives; energy markets; Flexibility; Fossil fuels; Generators; green computing; Incentives; Load modeling; MATHEMATICS AND COMPUTING; Optimization; Placement; power grid; Power grids; renewable portfolio standard (RPS); renewable power; Wind farms; Wind power; Wind power generation
• ISSN: 1949-3029; 1949-3037
• DOI: 10.1109/TSTE.2016.2593607

We analyze how traditional data center placement and optimal placement of dispatchable data centers affect power grid efficiency. We use detailed network models, stochastic optimization formulations, and diverse renewable generation scenarios to perform our analysis. Our results reveal that significant spillage and stranded power will persist in power grids as wind power levels are increased. A counter-intuitive finding is that collocating data centers with inflexible loads next to wind farms has limited impacts on renewable portfolio standard (RPS) goals because it provides limited system-level flexibility. Such an approach can, in fact, increase stranded power and fossil-fueled generation. In contrast, optimally placing data centers that are dispatchable provides system-wide flexibility, reduces stranded power, and improves efficiency. In short, optimally placed dispatchable computing loads can enable better scaling to high RPS. In our case study, we find that these dispatchable computing loads are powered to 60-80% of their requested capacity, indicating that there are significant economic incentives provided by stranded power.