Phinergy explores aluminium-air generators for data centre power beyond backup use

Phinergy and electrical contractor Rosendin Electric have published a second white paper examining how aluminium-air generators (AAGs) could support data centre power needs beyond conventional backup systems. The paper outlines three potential uses, including providing power for AI and cloud facilities, increasing available grid capacity and supporting renewable microgrids.

Titled “From Backup Power to Grid Enabler: Use Cases for Aluminum-Air Generator (AAG) in AI-Era Data Centers,” the paper compares aluminium-air generators with diesel generators and lithium-ion battery systems.

The report comes amid growing pressure on electricity infrastructure from data centre expansion. In Northern Virginia, more than 9,000 backup diesel generators serve data centres, according to Virginia Mercury. State lawmakers are considering tighter clean-energy requirements, while more than 45 US states have introduced moratoriums or restrictions affecting new data centre development, according to the companies.

Explore AL Circle’s report ALuminium Wires & Cables - Insights & Forecast to 2030 for insights into aluminium applications, industry developments and opportunities across the electrical sector.

Data centres already account for more than 25 per cent of Virginia's electricity consumption. Elsewhere, operators are facing multi-year delays in transmission upgrades as utilities struggle to meet requests for additional power capacity.

Citing EPRI's Powering Intelligence 2026 report, Phinergy and Rosendin said US data centre electricity consumption could reach 380–790 terawatt-hours (TWh) by 2030, equivalent to 9 to 17 per cent of total US electricity consumption. The report also found that reducing data centre demand on the grid for just 1 per cent of annual operating hours could allow existing US electricity systems to accommodate up to 70 gigawatts (GW) of additional data centre capacity without grid upgrades.

Explore AL Circle’s B2B Marketplace to discover aluminium electrical and power products, including conductors, busbars, cables and wires, and connect with suppliers across the industry.

Phinergy's aluminium-air technology generates electricity using aluminium as a recyclable fuel. The company says the system can provide power on demand for several days without the noise and emissions associated with diesel generators. It has also completed a module milestone through the Net Zero Innovation Hub for Data Centers, which it described as a step towards scaling the technology for large data centre operators.

The latest paper follows an earlier publication, “Aluminum-Air Generator for Data Centers”, which examined the technical and commercial potential of AAGs as an alternative to diesel generators. It covered the technology's zero-emission profile, multi-day operating capacity, compact footprint and compatibility with existing data centre infrastructure.