For data centre operators, the uninterruptible power supply (UPS) has long represented a critical safeguard against potentially damaging power anomalies as well as vital battery back-up to ensure business continuity during an unexpected power outage. Yet thanks to new technology, data centre UPSs now have the capability to achieve a dual benefit – transforming from a load on the grid to a value-generating asset.

If that sounds too good to be true, consider this: most large-scale data centres have deployed substantial battery banks to provide adequate back-up in the event of a blackout. Yet the reality is, these batteries sit unused the vast majority of the time because power outages occur infrequently. Operators in today’s hyperscale, multi-tenant and other large data centres now have the opportunity to harness this underused asset, turning their UPS into a profit centre and supporting the grid as a distributed energy resource (DER).

It is the adoption of lithium-ion batteries – which offer a longer lifespan and eight times the cycle rate of traditional VRLA batteries – that has created the potential for this evolution of the traditional UPS. While the data centre maintains control of its energy – choosing how much capacity to offer and when – it has the ability to convert the traditional power back-up into an energy storage device, providing a range of benefits to operators seeking to lower energy bills and optimise consumption.

This is especially valuable considering that power costs continue to skyrocket; in fact, energy ranks as the second highest operating cost in 70% of worldwide data centres, surpassed only by labour, according to Gartner. Even more, a 1 MW data centre will devour 160M kW hours of energy over a 10-year period – equivalent to the amount consumed by 1,400 typical USA households in the same time span.

Yet with EnergyAware technology, existing lithium-powered UPSs can help organisations optimise those costs and generate additional revenue. Opportunities include providing peak shaving to help avoid or reduce demand charges, shifting energy consumption for time-of-use rate optimisation, and providing frequency regulation to help grid operators meet explosive growth demands. Unlike a gas peaker plant, the battery banks are able to dispatch instantaneously to better meet short-term demand spikes.

Eaton’s technology was recently put to the test by Microsoft and Eaton who partnered to find a way to put Microsoft’s assets to work around the clock.  Eaton’s controller allowed the UPS to track frequency regulation signals and quickly respond by charging or discharging the battery to balance the grid. In a technology demonstration with PJM, a regional transmission organisation (RTO) serving 13 states and the District of Columbia, the UPS exceeded the operator’s requirements for accuracy, response time and precision on a self-scored test, proving the technology’s ability to serve as a viable DER.

The implications of the EnergyAware UPS are significant, both for the grid and for data centre operators. The technology can be used to lower demand and peak time charges as well as contribute to clean energy goals. Customers can use an existing asset to create a new revenue stream and lower energy costs while still providing a vital back-up solution.

In fact, EnergyAware technology could ultimately prove instrumental in reshaping the overall power generation industry. As Sean James, director of energy research at Microsoft, explained: “In the future, you don’t have a data centre or a power plant. It’s something in the middle. A data plant, for example. Where this thing isn’t just a load on the grid, it’s an asset on the grid.”