Energy Expert Encourages Data Centers To Connect to the Grid
So-called 'behind-the-meter' power generation had been seen as a potential solution to provide power to data centers fast.
WASHINGTON, April 22, 2026 – As a self proclaimed idealist, Gene Alessandrini, senior vice president of energy and location strategy for CyrusOne, a data center operator, stood in a room of industry representatives to deliver one message: do what's best for everybody.
“We understand our responsibility of becoming a solution driver,” Alessandrini said. “Utilities can't do this by themselves…we're way behind transmission enhancements, We're way behind transmission expansion... the market's not paying for the cost of new [generation] builds. The issue is how do we implement a reliable transmission grid and a reliable electrical system that benefits everybody?”
For Alessandrini, that means data centers need to connect power generation and improvements in transmission technology to the grid, to expand capacity, increase efficiency and drive down prices for rate payers.
Considering the rapid scale and capacity and transmission constraints with utilities, Alessandrini noted that data centers will want to bring in their own power generation out of necessity. However, Alessandrini believes there's a right way to do it through partnerships with utilities and driving solutions that benefit all parties.
Those solutions according to Alessandrini are ensuring that utilities benefit from data centers through peak capacity–providing excess energy not being used by data centers to the grid when demand is highest.
This type of power generation will serve the grid in important moments and benefit the capital investment of power generation by selling excess capacity to the grid. Alessandrini said it can help offset the investment of bringing in power generation, while gaining the reliability benefits of being on the grid.
“iI's beneficial for me to be on the grid…what they get is they get a peaking asset, right? So to me, the benefit side is, it's glaringly obvious,” Alessandrini said. “Running 10% of the time solves our cost reliability issue,”
In addition, Alesandrini believes that data center companies can help bring the old generation back online, which is already happening in places like Pennsylvania and bringing in new technologies to increase efficiency to transmission.
Due to the sheer speed and scale, Alesandrini noted that there are many complicated factors to getting this right, but he remains optimistic that a world in which everybody wins is possible.
“The simple reality of it is that data centers need power. And if there's no power, we're gonna build power,” Alessandrini said. “If 50% of the country says no, the 50% who says yes, we'll get all the death sentences. We haven't solved all the problems… I'm generally an optimist in addition to being an economic purist…we will solve the problems [thought] because we have to.”
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