A Phased Development Framework Enabling Islanded Operation of Sustainable AI Data Centers With Onsite Grid-Following and Grid-Forming Energy Architectures

Soham Ghosh, Nabil Mohammed, Mohammad Ashraf Hossain Sadi

As hyperscale and colocation AI data centers continue to expand, the electric grid is increasingly required to support large, concentrated loads, with individual facilities ranging from 500 MW to 2 GW. Current projections estimate that approximately 50 GW of AI data center capacity will require grid connectivity in the United States by 2030. While prior research has extensively examined the environmental and operational impacts of AI data centers, as well as their potential role as grid-interactive assets, limited attention has been given to the challenges associated with their scalable deployment through engineering, procurement, and construction (EPC) processes. This manuscript addresses this gap by proposing a phased development framework for AI data center expansion. The approach is designed to enable developers to meet aggressive time-to-market objectives while navigating multi-year constraints associated with interconnection approvals and lead times associated with the procurement of component equipment. A modular construction architecture is presented, along with a detailed analysis of integrated energy systems and the role of hybrid on-site generation in supporting incremental capacity growth. Electromagnetic transient simulations (EMT) are used to evaluate system performance, demonstrating that a combination of on-site natural gas generation and grid-forming energy storage can reliably support data center operations during early and intermediate deployment phases. The study further examines the transition to full grid interconnection, including the capability of the data center to operate in islanded mode during grid disturbances. Finally, the manuscript compares grid-forming control strategies for system reconnection and restoration under varying conditions.