Harnessing Microgrids and Energy as a Service:A Game-Changer for Data Centers

datacenter

In the evolving landscape of technology, data centers stand as the backbone of our digital infrastructure, powering everything from social media platforms to e-commerce giants. Yet, this critical infrastructure faces significant challenges in terms of energy consumption and sustainability. Enter microgrid systems providing energy as a service, a new approach that can transform the way data centers operate and enable them to thrive in the modern world.

The Rise of Data Centers and Their Energy Woes

Data centers are at the heart of the digital age, storing and processing the vast amounts of data that fuel our interconnected world. However, this rapid growth comes with a hefty energy price tag. According to recent estimates, data centers consume about 1% of the world’s total electricity, a figure projected to rise as our reliance on digital services continues to grow.

Traditional data centers rely heavily on the grid for their energy needs, which poses several challenges. First, they are susceptible to power outages and grid failures, which can have catastrophic consequences in terms of data loss and downtime. Second, the reliance on fossil fuels for electricity generation contributes to carbon emissions and environmental degradation, making it increasingly untenable in an era of heightened climate awareness.

The Promise of Microgrids

Microgrids offer a compelling solution to these challenges by providing data centers with a more resilient, efficient, and sustainable energy infrastructure. At its core, a microgrid is the integration of distributed energy resources and advanced control technologies to create localized grids that can operate independently or in conjunction with the main power grid.

Resilience and Reliability

One of the key benefits of microgrids for data centers is enhanced resilience and reliability. By diversifying their energy sources and incorporating energy storage systems, data centers can ensure uninterrupted operation even in the event of grid outages or disruptions. This is particularly crucial for mission-critical applications where downtime can result in significant financial losses or damage to reputation.

Energy as a Service = Cost Savings

The Energy as a Service (EaaS) model means that businesses don’t have to invest in expensive energy infrastructure. The EaaS provider owns the equipment, hardware and software and sells power to the business at reduced rates compared to their traditional utility. By harnessing renewable energy sources, such as solar and wind, data centers can reduce their reliance on grid electricity, thereby lowering their energy bills and mitigating the impact of fluctuating energy prices.

Environmental Sustainability

Perhaps most importantly, microgrids enable data centers to make significant strides towards environmental sustainability. By transitioning to renewable energy sources and reducing their carbon footprint, data centers can play a crucial role in combating climate change and promoting a more sustainable future. This not only aligns with corporate social responsibility goals but also positions data centers as leaders in the transition to a low-carbon economy.

Conclusion

Microgrids hold immense promise for revolutionizing the way data centers operate and thrive in the digital age. By providing enhanced resilience, cost savings, and environmental sustainability, they offer a compelling solution to the energy challenges facing data centers today. As the world becomes increasingly interconnected and data-driven, embracing microgrids and EaaS will be essential for data centers to remain competitive, resilient, and sustainable in the years to come.

About SolMicroGrid

SolMicroGrid is a differentiated developer and operator of solar-enabled microgrid systems, offering energy resiliency and efficiency to commercial and industrial customers. The company’s service solution reduces operating expenses without the need for customer capital investment. SolMicroGrid is a portfolio company of Morgan Stanley Energy Partners. For further information about SolMicroGrid, please visit www.solmicrogrid.com.

Robert Duva

Senior Vice President, Operations

Bob Duva leads our Operations and Project Management teams. He brings over 38 years of experience in construction, energy efficiency technologies, automation, and renewables. His background includes growing talented engineering teams, managing projects across the continental U.S. and Hawaii, and developing creative solutions in the fields of demand response, solar production, battery integration, and remote automation and control.

Additionally, Bob has served as Engineer of Record for many Solar projects in the NJ/CT/MA area since 2010, being Licensed in those states as a Professional Engineer, as well as NY and PA. He also holds an Electrical Contracting License in NJ.

Bob Duva

Bill Gifford

Vice President, Business Development

Bill Gifford is focused on our business pipeline, building our business development team, and exploring new opportunities to expand our network of microgrid customers. He’s a seasoned industry veteran in C&I renewable energy sales and project management. Gifford joined SolMicroGrid from Dynamic Energy where he worked in various senior business development and revenue origination roles for five years. His previous experience includes roles at SolarCity which was acquired by Tesla. Gifford started his career as a solar installer in 2015, which provided valuable hands-on experience.

Gifford graduated from Hunter College with a BA in Political Science and Rutgers University with a Master of Public Administration.

Smiling white guy in blue suit in front of blurred building

Ryan Jordan

Executive Director, Morgan Stanley Energy Partners

Ryan Jordan is an Executive Director of Morgan Stanley and is based in New York. Mr. Jordan joined Morgan Stanley in 2009 as an Analyst in the Investment Banking Division, working in the firm’s Natural Resources Group in Houston. He joined Morgan Stanley Capital Partners (MSCP) in New York in 2011 and focused on investments in the energy sector, prior to joining Morgan Stanley Energy Partners (MSEP) upon its inception as a separate investing team in 2015. Mr. Jordan currently serves on the Board of Directors of Sterling Energy, a portfolio company of MSCP, and of Specialized Desanders, M.G. Bryan, SolMicroGrid and Durango Midstream, all MSEP portfolio companies. Mr. Jordan holds a B.B.A. in Finance and the Business Honors Program from the McCombs School of Business at the University of Texas at Austin and a B.A. in the Plan II Honors Program from the University of Texas at Austin.

Ryan Jordan

Andrew Griffin

Executive Director, Morgan Stanley Energy Partners

Andrew Griffin is an Executive Director of Morgan Stanley and is based in Houston. Mr. Griffin joined Morgan Stanley Energy Partners in 2017 after completing graduate school. From 2013 to 2015, Mr. Griffin was an Associate at Lindsay Goldberg and, from 2011 to 2013, he worked as an Analyst in the Mergers & Acquisitions group of Bank of America Merrill Lynch. He currently serves on the Board of Directors of Catalyst Energy Services, Mission Creek Resources and SolMicroGrid, all current MSEP portfolio companies. Mr. Griffin holds an A.B. in Economics, magna cum laude, from Harvard College and an M.B.A. from the Wharton School of the University of Pennsylvania where he was a Palmer Scholar.

Andrew Griffin

John Moon

Head of Morgan Stanley Energy Partners

John Moon is a Managing Director of Morgan Stanley and Head of Morgan Stanley Energy Partners (MSEP). He is based in New York and Houston and has 25 years of investing experience. Mr. Moon served as a senior member of the Morgan Stanley Capital Partners (MSCP) team from 1998 to 2004 and then rejoined Morgan Stanley in 2008.

Prior to his return to MSCP, Mr. Moon was a Managing Director of Riverstone Holdings LLC where he served on the Investment Committees of the Carlyle/Riverstone Global Energy & Power Funds III and IV. Prior to Riverstone, Mr. Moon was a founding partner, Managing Director and member of the Management Committee of Metalmark Capital LLC, which sub-advised Morgan Stanley on investments held by MSCP III and MSCP IV beginning in September 2004. He is a former member of the Investment Committees of MSCP III and MSCP IV and Metalmark Capital Partners I.

Mr. Moon served on the Board of Directors of the following MSCP Fund portfolio companies: Aventine Renewable Energy, Cantera Resources, Canyon Gas Resources, Concert Capital Resources, Triana Energy/Columbia Natural Resources, Triana Energy II and Union Drilling. He currently serves as a director of Sterling Energy and Trinity CO2, both MSCP portfolio companies, and M.G. Bryan, XRI, Presidio Petroleum, Specialized Desanders, Durango Midstream, Mission Creek Resources, SolMicroGrid and Catalyst Energy Services, all MSEP portfolio companies. Prior to joining Morgan Stanley in 1998, Mr. Moon worked in the Investment Banking Division of Goldman Sachs in New York.

Mr. Moon holds an A.B., magna cum laude, from Harvard College. He also holds an A.M. and Ph.D. in Business Economics from Harvard University. Mr. Moon is an adjunct professor of finance at Columbia Business School.

John Moon

Richard Grosdidier

Executive Vice President, Commercial Execution

Richard Grosdidier brings more than 35 years of domestic and international experience in tax equity, project and structured finance, banking, treasury, M&A, project development, team leadership and complex transaction management to SolMicroGrid. He has also been instrumental in the creation of several startup companies in both structured finance and renewable energy.

Grosdidier has held senior finance and development positions with leading companies in the energy/renewable energy industry such as Innogy SE, NRG Energy, Next Era Energy Resources, DZ Bank AG, Foster Wheeler Energy Corporation, Signal Capital and AT&T Capital. He was Senior Vice President of Commercial Execution at NRG and helped the company build a 1.8 GW utility scale solar portfolio through greenfield development and M&A. At Next Era Energy, Grosdidier was Senior Director of Project Finance and Analysis and played a key leadership role in multiple complex financings and M&A transactions. As Senior Energy Banker at DZ Bank, he developed several new markets for the bank. Grosdidier also was based in Asia for 8 years with responsibility for project finance leading the execution of numerous cross border financings. Early in his career he spent 10 years as an Institutional Tax Equity Investor focused on the energy sector.

Grosdidier holds a BS in Commerce & Finance from Wilkes University and an MBA and Juris Doctor from the University of Dayton.

Kirk Edelman

Chief Executive Officer

Kirk Edelman is focused on expanding business opportunities and driving organizational change to position SolMicroGrid for its next phase of growth. He is a driven leader and proven energy executive with a 25+ year history of success managing multi-cultural teams focused on investing in power, oil gas, natural resources, and infrastructure projects. Edelman served as President and CEO of Siemens Financial Services, Inc. where he built a $15 billion investment portfolio. He has held senior positions in financial services firms like Dresdner Kleinwort Wasserstein and TD Securities and has led several energy investment organizations including those within Bank of Tokyo-Mitsubishi, and GMAC. He was the Chief Commercial Officer of Safari Energy – a leading solar company which is now part of Carlyle’s Aspen Power platform – where he helped build a $300 million portfolio of operating assets. In 2022, Edelman became the Chief Commercial Officer of Verdagy, Inc., a pre-revenue green hydrogen company before accepting the CEO position at SolMicroGrid. He started his career as an engineer with Exxon and transitioned into more senior roles with companies like Catalyst Energy, Translink Transmission and Siemens.

Edelman graduated from Bucknell University  with a BS in Civil Engineering with honors and the University of Pennsylvania’s Wharton School  with an MBA in Finance.  Board memberships have included The German American Chamber of Commerce, New Jersey Institute of Technology’s Martin Tuchman School of Management and Cornell University’s Program in Infrastructure Policy.

Kirk Edelman