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The Shift to Solar-Powered Data Centers

In the digital information era, data centers are driving everything from cloud storage to real-time data processing. Yet, these critical facilities are also some of the largest consumers of electricity and fresh water globally ( As energy demands grow with the surge in digital data, the shift towards sustainable power solutions becomes not just an environmental imperative but an economic necessity. Today, we explore a basic block of 1 MW green power plant opting for a target ROI of seven years or less.

Rising to Meet the Challenge

As global data flows escalate, so does the strain on traditional energy resources which are in short supply as it is. A robust integration of renewable energy sources, complemented by advanced battery technology looks like the only alternative.

For this exercise we examine a basic block of a 1 MW data center, which will make it easy to scale to any project size.

System key components

Basic Solar Array: 1 MW capacity

Basic Battery Backup: 3.5 MW

Explore how integrating solar arrays and Tesla Megapacks into data centers reduces costs and boosts sustainability. An economic analysis of renewable energy solutions
Green powered Data Center

Backup Generator: 500 kWh PLUG hydrogen fuel cell with a supporting 10,000-gallon LN2 tank


Financial Breakdown Costs:

Solar Array – 3 MW solar array was elected to total about 18 MWh of energy per day.

Solar Array cost:

Solar panels: $0.22/watt → $660,000 for 3,000,000 watts

Inverters: $0.10/watt → $300,000

Racking: $0.05/watt → $150,000

Labor and permitting: $720,000 per MW → $2,160,000 for 3 MW

Required Area: 6.6 acres (2.2 acres per MW) Cost: $20,000 per acre → $132,000 total

Total solar array – $3,402,000


Battery and Backup

Tesla Megapack: 3 units required to ensure adequate storage and backup.

Cost per unit: $800,000 → Total: $2,400,000

Fuel Cell System: Essential for emergency backup, particularly when solar production is insufficient.

System Cost: $500,000

LN2 Costs: 30 kg/hour at $10/kg (only during operation)


Total Initial Investment:

Solar System                                                    : $3,402,000 (including panels, inverters, racking, and labor)

Energy Storage and Backup Systems   : $2,900,000 (Tesla Megapacks and Fuel Cell)

Construction and Additional Costs       : $2,500,000

Grand Total                                                        : $8,834,000


Economic Viability and ROI Calculation

Operational Efficiency and Savings:

Daily Energy Requirement: 24 MWh

Solar Energy Contribution: 18 MWh/day

Deficit Management: Through stored solar energy in Tesla Megapacks and minimal grid usage during off-peak hours.


Cost-Savings Analysis:

Grid Electricity Cost without Solar: 24 MWh/day at $0.50/kWh → $12,000/day → $4,380,000 annually.

Post-Installation Grid Use: Assuming 95% coverage by solar and battery, with residual 5% from the grid at reduced off-peak rates.

New daily grid cost        : $0.25 x 6 MWh = $1,500 → $547,500 annually.

Annual Savings                               : $4,380,000 - $547,500 = $3,832,500.

Return on Investment:  $8,834,000 / $3,832,500 ≈ 2.3 years.



Designing a solar-powered data center is an intricate but rewarding challenge that combines environmental stewardship with economic savvy. By leveraging cutting-edge technology such as Tesla Megapacks and hydrogen fuel cells, we can significantly reduce operational costs and achieve rapid ROI, all while advancing sustainability goals. This project serves as a blueprint for future developments in the field, demonstrating that integrating renewable energy into data center operations is not only possible but profitable and practical.

Gal Moyal

Maktinta Energy

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