Microgrid
Local electrical grid able to operate autonomously from the main grid, combining generation, storage and consumption.
A microgrid is a local electrical network integrating generation, storage and consumption, able to operate connected to the main grid or to island itself for autonomous operation. For a data center, the microgrid offers increased resilience: in the event of a public grid failure, the site can keep powering itself from its own sources, solar panels, fuel cells, batteries, generators. This autonomy addresses the growing tension between the explosion in artificial intelligence energy demand and the public grids' ability to meet it. For insurance, the microgrid changes the supply risk profile: it reduces dependence on the external grid, hence grid-origin interruption risk, but adds its own generation and storage assets, with their own perils, battery fire, generation failure, management complexity. The analysis shifts from external outage risk to internal failure risk of the autonomy setup.
Hypothetical case: a data center with a microgrid can maintain operation during a regional outage, but must insure its own generation and storage assets against their specific perils.
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