AI boom: How combustion engines secure the power supply for data centers – and what Rolls-Royce is planning next

The rapid growth of AI is putting an increased strain on already overburdened power grids worldwide. As data center construction rises to meet the demands of an increasingly AI-driven world, they are having to supply their own energy – both sustainably and reliably. With nearly two decades of experience serving the hyperscale data center market, Rolls-Royce has the expertise and the most comprehensive product portfolio to help data center operators produce the power they need. In this interview, Rolls-Royce data center expert Kevin McKinney explains how Rolls-Royce empowers its customers to overcome their energy challenges.

Rolls-Royce says it offers the most comprehensive portfolio for data center power supply on the market. What does that entail – in a nutshell?

Rolls-Royce offers mtu emergency power solutions based on diesel and gas gensets as well as dynamic UPS Kinetic Power Packs, which are used worldwide to protect safety-critical infrastructure. mtu EnergetIQ, the energy management system from Rolls-Royce, is the brain of the energy infrastructure and ensures the efficient and safe control of energy systems. With more than 10 GW of installed capacity in mtu emergency power gensets, Rolls-Royce is one of the three largest suppliers of emergency power systems for the rapidly growing global data center market. 

According to current market studies, the energy requirements of data centers worldwide will double by 2030. While volatile renewable energies are being integrated into the power grid in many regions around the world, the qualitative and quantitative energy requirements for data centers are increasing at the same time. What challenges does this development pose for data center operators? 

Major blackouts, such as those in Portugal and Spain in 2025, highlighted the vulnerability of the grids. Critical infrastructure like data centers must be protected against power outages and grid fluctuations, as these can lead to data loss and downtime, not to mention significant financial losses. 

The limited capacity of power grids is becoming a bottleneck for data centers worldwide—especially in the US, Ireland, and central locations in Europe and Asia. New connections with the required power (often over 100 megawatts) are often unavailable, which blocks investment, causes location planning to fail, and jeopardizes competitiveness in AI development.

At the same time, the rapidly increasing demand for electricity due to AI requires quick solutions, while grid expansion can take up to decades. Data centers can be built quickly but projects may be delayed or cancelled due to lack of grid connection and insufficient power supply.

Is self-generation a solution?

Yes, self-generation is a solution, partly with renewable energies, but above all with power generator systems that deliver continuously and reliably, such as natural gas engine power plants. They can be used to support the grid, but also as self-sufficient energy systems. In fact, our mtu Series 4000 gas units are already being used as the continuous power supply for data centers. For example, SpaceDC has been operating its data center campus in Jakarta with Rolls-Royce technology. mtu gas and diesel systems with exhaust gas aftertreatment technology ensure efficient and clean base load and emergency power supply as well as cooling. Gas systems offer maximum efficiency because they can generate both electricity and heat or cooling. mtu gas gensets also offer a service life of up to 84,000 operating hours until overhaul (TBO). 

Although investing in in-house generation with natural gas engine power plants may initially appear to be a risk in terms of sunk costs, it offers strategic advantages in the long term. For example, these systems can be used to expand business models by marketing reserve capacities, or using combined heat and power waste heat, or treated CO2 as a revenue stream. Even after grid bottlenecks have been resolved, surpluses can be fed into the public grid, thus optimizing energy costs. Own generation not only increases operational reliability but also strengthens grid stability and economic performance. mtu gas units are also available as container solutions, which are mobile and can therefore be used flexibly.

Can gas engines also be used for emergency power supply in data centers?

The short answer is yes. Our proven mtu Series 4000 gas gensets can be used to supply power to data centers at full load within 120 seconds. The short supply gap is closed by a UPS (batteries or kinetic mass storage). And for the 60Hz market, we’ll be offering gas gensets from 2026 that will reach full power even faster – in 45 seconds - with a higher power output than our current gas gensets.

Why are classic diesel emergency power generators still the number one backup solution?

Diesel generators are still the perfect and most sought-after solution for mission critical facilities such as data centers because of their excellent transient response – the ability to respond quickly to changing loads or speed - and the ability to take on full load extremely quickly. Within ten seconds, they are running at full speed and taking over the entire power supply for a facility. Batteries or kinetic mass storage devices bridge the short interim period until the diesel engine can deliver full power. In an emergency, diesel generators can take over the power supply for several days. No other system can match their reliability and efficiency. Customers trust this technology and our proven performance, which is why our sales in this area last year rose by almost 50 percent.

What are the advantages of dynamic UPS systems for data centers?

During normal operation, our mtu Kinetic PowerPacks provide conditioning that can compensate for power and voltage fluctuations, which are problematic for sophisticated and sensitive IT equipment. And if the primary power source were to fail completely, the stored kinetic energy is sufficient to bridge the gap until the diesel engine is running at full speed and able to take over the load. In comparison to static UPS systems, these systems also offer the advantage of a smaller footprint and less overall complexity since they don’t require batteries or the related HVAC infrastructure. This gives data centers more room for revenue-generating equipment (i.e. more servers).

Sustainability and carbon footprint are important issues in the data center market. Do combustion engines have a future in this industry?

Yes, definitely!

The first step is that our engines are approved for use of sustainable fuels such as hydrogenated vegetable oil (HVO). Without any reduction in performance, HVO offers significant emissions reduction and is a 1:1 replacement for fossil diesel fuel. It is already widely accepted in the market, but lags in worldwide availability. As more and more operators begin adopting its use and governments mandate environmental targets, we expect to see this make an even bigger impact. 

The second step to emissions reduction is our manufacturer-certified extended test run interval, where operators can extend their test runs from once a month to once every three months. This not only helps them reduce emissions but also lowers operating costs. Finally, mtu exhaust gas aftertreatment systems help keep local emissions such as nitrogen oxide and particulates to an absolute minimum.

One of the pride points for Rolls-Royce is that we were the first engine manufacturer to develop certified environmental product declarations for emergency power generators. This allows us to verify the environmental footprint of our mtu systems, set new standards for environmental transparency, and support customers in reducing their carbon footprint.

Sustainable fuels such as biogas and biomethane are available for gas engines and offer an environmentally friendly solution. Once sufficient availability of green hydrogen is ensured, mtu gas gensets running on 100 percent hydrogen or even with a hydrogen admixture can contribute significantly to CO2 reduction. Since summer 2025, we have had the first mtu combined heat and power plants running on 100 percent hydrogen in operation.

We are also active in the development of carbon capture solutions, in which CO2 is recovered and processed from gas-fired power plants. In 2025 we have commissioned a 10-megawatt gas engine power plant including a CO2 recovery plant in the UK. 

What trends do you see for data center energy supply over the next ten years?

There’s no doubt that efficiency and reliability will remain top priorities in data center energy supply. Solutions that have a lower environmental impact and solutions that offer opportunities for self-generation to strengthen resilience and self-sufficiency in energy supply will become increasingly important, as well.

In terms of the fuels used, natural gas is expected to account for a significant portion of data center energy supply, particularly in North America, where it is relatively low cost and readily available. We see it as a natural bridging technology for the emerging energy gap between supply and demand from the grid.

In the mid- to longer term, we also see nuclear solutions such as Small Modular Reactors (SMRs) emerging to provide data centers with a reliable, long-term energy supply. These will also require backup power, so the demand for our diesel and gas systems will remain even after SMRs come into play.

Overall, we do not see one single solution, no silver bullet. We assume that there will be different technologies and solutions depending on the region, circumstances, and customer requirements.

What's next for Rolls-Royce – will there be new solutions?

Our strategic goal is to continue to profitably expand our power generation business and to do that we are investing heavily in expanding our portfolio to meet the future needs of our customers.

 In the field of diesel engines, we are currently developing the next generation of our proven Series 4000 engine that will be available from 2028. The new engine will have more than 20% power increase from nearly the same footprint, giving us a best-in-class power density which again benefits the customer in terms of smaller space claim. The new platform is also exciting in that it will feature improved fuel consumption and can be operated with sustainable fuels. 

We also believe that our customers will come to appreciate the advantages of combining diesel and gas generators—to reduce emissions, improve efficiency, and expand more flexibly and quickly. Overall, we believe we are well positioned for future developments in this area.

Looking a little further down the road, we are excited about the prospects of the Rolls-Royce SMR nuclear power plant. Offering a radically different approach to deploying proven nuclear technology, the Rolls-Royce SMR has already been selected for deployment in the UK (by Great British Nuclear – Energy) and the Czech Republic (by European utility, CEZ). The Rolls-Royce SMR is in the final step of assessment by UK regulators and has recently entered the pre-application phase of the regulatory process in the US.

It’s really an exciting time to be in Power Generation and to be working for Rolls-Royce. The tremendous growth we’ve seen and the increased investments to enable that growth is like nothing else I’ve seen in my 17 years with the company.