Ep. #90 Lyoid Fussell of GenSystems Power Solutions and Jesse Webb of Jereh

Episode #90 of the Data Center Go-to-Market Podcast features an interview with Lyoid Fussell, President at GenSystems Power Solutions, and Jesse Webb, VP of Strategic Development at Jereh International.

Discover how on-site power generation can address the growing energy demands of data centers.
Understand the challenges utility companies face in meeting the power needs of large-scale data centers.
Explore the benefits of modular and scalable power solutions for data center operators.
Learn about the role of natural gas turbines in providing reliable and efficient power for data centers.
Examine the potential cost savings and reduced latency issues by locating data centers closer to energy sources.
Gain insights into the evolving landscape of data center site selection and energy strategies.
Identify the key stakeholders and decision-makers involved in adopting on-site power solutions.
Hear expert perspectives on the future of energy solutions for data centers, including integrating renewable energy sources.
Focus on the importance of speed-to-market in the competitive data center industry.
Learn how emerging technologies and innovative solutions are transforming the data center ecosystem.

Host:
Joshua Feinberg, CEO
DCSMI

Special Guests:
Lyoid Fussell, President
GenSystems Power Solutions

Jesse Webb, VP of Strategic Development
Jereh International

In this episode of the Data Center Go-to-Market Podcast, host Joshua Feinberg interviews Lyoid Fussell, President of GenSystems Power Solutions, and Jesse Webb, VP of Strategic Development at Jereh, to discuss the transformative potential of on-site power generation for the data center industry.

As data centers face increasing challenges in securing reliable energy, this conversation provides a comprehensive look at how innovative energy solutions can address these issues while enabling faster, more sustainable growth.

Introduction to the Guests and Their Expertise

Lyoid Fussell and Jesse Webb bring a wealth of experience from the energy, oil, and gas industries. Lyoid shares his journey from working as a field engineer in the oil and gas sector to founding GenSystems, a company focused on providing scalable power solutions.

Jesse, with a telecommunications and energy consulting background, explains how his career trajectory led him to Jereh, where he focuses on non-oil and gas markets, including data centers. Together, they offer unique insights into how their expertise in energy systems can be applied to the data center ecosystem.

The Growing Energy Challenges for Data Centers

The episode begins by addressing the critical energy challenges faced by data centers. With the exponential growth of AI and other power-intensive technologies, the energy demand has outpaced the capacity of traditional utility grids. Lyoid and Jesse explain how utility companies struggle to meet these demands due to regulatory hurdles, infrastructure limitations, and the risk of stranded assets. This has led to delays in project timelines, with some data centers waiting up to seven years for grid power.

The Case for On-Site Power Generation

Lyoid and Jesse propose on-site power generation as a game-changing solution for data centers. Natural gas turbines can directly provide reliable, scalable, and modular power at the data center site. This approach eliminates the dependency on overburdened utility grids and accelerates project timelines, enabling data centers to go to market faster. They emphasize that their solution is not only cost-effective but also environmentally beneficial, as it utilizes natural gas—a cleaner-burning and abundant energy source in the United States.

Benefits of On-Site Power Solutions

The conversation highlights several key benefits of on-site power generation:

Cost Savings: By locating data centers closer to energy sources, operators can reduce costs associated with energy transmission and real estate in high-demand areas.
Scalability: Modular power solutions allow data centers to scale their energy needs as they grow, rather than overcommitting to large, centralized facilities.
Reliability: On-site power systems can be designed with redundancy and backup options, ensuring high reliability even in grid outages or natural disasters.
Speed to Market: On-site power solutions can be deployed in months rather than years, significantly reducing project timelines.
Environmental Impact: By converting natural gas into electricity at the source, these systems reduce emissions and eliminate the need for flaring, a wasteful practice in the oil and gas industry.

Addressing Dynamic Load Shifts

One of the unique challenges of data centers is managing dynamic load shifts, particularly with the rise of AI and other data-intensive applications. Lyoid and Jesse explain how their systems are designed to handle these fluctuations efficiently, ensuring that data centers can operate at full capacity without throttling back processing speeds. This capability makes on-site power generation compelling for data centers with high and variable energy demands.

Flexibility in Energy Solutions

Lyoid and Jesse discuss the importance of flexibility in energy solutions. Their systems can integrate with future energy sources, such as hydrogen, and adapt to changing market conditions. They also offer a power-as-a-service model, allowing data centers to treat energy as an operational expense rather than a capital investment. This model provides the same reliability as traditional grid power while giving operators greater control over their energy supply.

The Role of Site Selection

The conversation explores the evolving landscape of data center site selection. Lyoid and Jesse emphasize the potential of rural locations with access to natural gas and fiber infrastructure. By moving away from high-demand urban areas, data centers can reduce costs and avoid the regulatory and infrastructure challenges associated with traditional site selection. They also highlight the importance of proximity to energy sources, which can further enhance efficiency and reliability.

Educating Stakeholders

A significant portion of the discussion focuses on educating stakeholders about the benefits of on-site power solutions. Lyoid and Jesse are actively reaching out to EPCs (engineering, procurement, and construction companies), real estate developers, and investors to inform them about their innovative approach. They believe that once the market sees the success of early adopters, the demand for on-site power generation will grow rapidly.

Overcoming Barriers to Adoption

Lyoid and Jesse address some of the barriers to adoption, including misconceptions about the reliability and scalability of on-site power systems. They explain how their technology is based on proven methods used in the oil and gas industry, ensuring high reliability and efficiency. They also discuss how their systems can complement existing backup solutions, such as diesel generators, to meet the stringent requirements of tier-three and tier-four data centers.

The Future of On-Site Power Generation

Looking ahead, Lyoid and Jesse are optimistic about the future of on-site power generation. They believe that as the data center industry continues to grow, the limitations of traditional utility grids will drive greater adoption of their solutions. They also see opportunities to integrate renewable energy sources and advanced technologies, such as cogeneration and waste heat recovery, to further enhance efficiency and sustainability.

Key Takeaways for Data Center Professionals

This episode provides valuable insights for data center operators, investors, and industry professionals. Key takeaways include:

The urgency of adopting innovative energy solutions to meet the growing demands of AI and other power-intensive technologies.
The benefits of modular, scalable, and reliable on-site power systems.
The importance of flexibility and adaptability in energy solutions.
The potential of rural locations for data center site selection.
The need to educate stakeholders and overcome misconceptions about on-site power generation.

Conclusion

Episode #90 of the Data Center Go-to-Market Podcast offers a compelling look at how on-site power generation can revolutionize the data center industry. Lyoid Fussell and Jesse Webb provide actionable insights and forward-thinking strategies for addressing the energy challenges faced by data centers. Whether you’re a data center professional, investor, or simply curious about the future of energy solutions, this episode is a must-watch.

By the end of the episode, listeners will have a deeper understanding of how on-site power generation can enable faster, more sustainable, and cost-effective growth for data centers. With the exponential growth of AI and other power-intensive technologies, the need for innovative energy solutions has never been greater. This episode serves as a valuable resource for anyone looking to navigate the evolving landscape of data center energy strategies.

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Resources

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Ep. #90 Lyoid Fussell of GenSystems Power Solutions and Jesse Webb of Jereh | Data Center Go-to-Market Podcast