Businesses
Phinergy and Rosendin Introduce Aluminum-Air Power Solution to Reduce Data Centre Dependence on Diesel
02 Nov 2026
The companies' second joint white paper explores how aluminum-air generators could provide cleaner backup power, improve grid flexibility and help AI data centres overcome electricity infrastructure constraints. The research highlights a scenario in which reducing grid demand for just 1% of annual operating hours could accommodate up to 70 gigawatts of additional US data centre capacity.
San Jose, California, 2 November 2026 – Clean energy technology company Phinergy (TASE: PNRG) and electrical contractor Rosendin Electric have released a new white paper examining how aluminum-air generation could help data centres reduce their dependence on diesel backup systems while addressing growing constraints on electricity grid capacity.
The report, titled From Backup Power to Grid Enabler: Use Cases for Aluminum-Air Generator (AAG) in AI-Era Data Centers, introduces a proposed approach to backup power that could serve both emergency resilience and grid flexibility.
The publication comes as artificial intelligence infrastructure expands across the United States, increasing demand for electricity, data centre development and reliable backup power systems. Grid connection delays, transmission capacity shortages and concerns about diesel emissions are creating challenges for operators seeking to develop new facilities.
According to the companies, aluminum-air generators could help address these constraints by supplying on-site electricity during periods of grid stress, potentially allowing data centres to secure power connections sooner without compromising emergency backup arrangements.
AI Data Centre Growth Creates New Electricity Infrastructure Challenges
The rapid expansion of artificial intelligence is increasing electricity requirements across the data centre industry.
Training and operating AI models require substantial computing capacity, supported by servers, cooling equipment and other infrastructure that must operate reliably.
The press release cites the Electric Power Research Institute's (EPRI) Powering Intelligence 2026 report, which projects that US data centre electricity consumption could reach 380 to 790 terawatt-hours annually by 2030, equivalent to approximately 9% to 17% of national electricity consumption.
These figures are forecasts rather than confirmed future consumption levels. Nevertheless, they illustrate the potential scale of electricity demand associated with AI infrastructure.
The companies identify grid access as an increasingly important constraint on data centre development. Utilities may be unable to provide requested capacity immediately, particularly when infrastructure must accommodate short periods of unusually high electricity demand.
As a result, data centre operators can face lengthy delays while new transmission and distribution infrastructure is planned and constructed.
Could Grid Flexibility Unlock 70 Gigawatts of Additional Capacity?
One of the white paper's principal findings concerns the potential value of reducing electricity demand during a small number of peak periods.
Citing EPRI research, Phinergy and Rosendin state that reducing data centre demand on the grid for just 1% of annual operating hours could enable the integration of up to 70 gigawatts of additional US data centre capacity without grid upgrades under the modelled scenario.
One percent of a year represents approximately 88 hours.
The proposed approach involves temporarily supplying electricity from an on-site aluminum-air generator during periods when grid capacity is constrained.
This could help utilities manage peak demand while allowing data centres to maintain operations.
However, the 70-gigawatt estimate describes the potential impact of demand flexibility under specific assumptions. It is not a confirmed amount of capacity unlocked by aluminum-air technology or evidence that all participating facilities could avoid network upgrades.
How Aluminum-Air Generators Work
Phinergy's Aluminum-Air Generator uses an electrochemical process involving aluminum and oxygen from the surrounding air to produce electricity.
Unlike conventional diesel generators, the technology does not rely on burning fossil fuels at the point of operation.
Phinergy positions its AAG technology as an alternative for facilities requiring extended backup power, with claimed benefits including lower operational noise, multi-day runtime and reduced direct emissions.
The aluminum consumed in the process must be replenished, while the resulting materials can potentially be recovered and recycled through an appropriate industrial process.
Although the generator can operate without direct combustion emissions, its overall environmental footprint depends on factors including aluminum production, recycling, transportation and the electricity used throughout the material lifecycle.
The companies describe the technology as suitable for integration into existing data centre power architectures, although large-scale deployment remains dependent on further engineering, commercial validation and site-specific requirements.
Three Applications for AI-Era Data Centres
The second white paper identifies three potential applications for aluminum-air generation.
| Application | Proposed benefit |
|---|---|
| Clean backup power for AI and cloud data centres | Provide extended emergency electricity supply without diesel combustion |
| Grid capacity support | Reduce demand during constrained periods to help accommodate new data centre connections |
| Renewable microgrid resilience | Supply on-demand backup electricity when renewable generation is insufficient |
The first application focuses on emergency power, traditionally provided by diesel generators at many large facilities.
The second extends the generator's role beyond emergencies, allowing operators to reduce their dependence on the public grid during periods of high demand.
The third examines how aluminum-air systems could complement renewable microgrids where intermittent generation requires additional reserves.
Each application has different operating, economic and reliability requirements. Actual performance would depend on system configuration and the conditions under which the technology is deployed.
Phinergy Highlights Progress Towards Commercial Scalability
The announcement follows Phinergy's completion of a module validation milestone under the Net Zero Innovation Hub for Data Centers.
The company describes the achievement as progress towards scaling its aluminum-air technology for demanding data centre applications.
Emmanuel Levy, CEO of Phinergy, said:
The AAG is a single asset that delivers multiple services simultaneously.
Levy argues that combining backup power with demand flexibility could help operators address grid connection delays while reducing the environmental impact of traditional backup systems.
The company also believes that aluminum-air generation could support hyperscale facilities requiring substantial reserves of dependable electricity.
However, completion of a module milestone should not be interpreted as confirmation that the technology has already demonstrated full commercial-scale performance across hyperscale data centres.
Rosendin Sees Opportunities for Cleaner Data Centre Infrastructure
Rosendin Electric, one of the largest electrical contractors in the United States, contributed its engineering and data centre infrastructure expertise to the research.
The company has extensive experience in electrical installations and the construction of complex facilities, including large technology infrastructure projects.
Bill Mazzetti, Senior Vice President at Rosendin Electric, said data centre customers increasingly want power solutions that reduce environmental impacts while maintaining operational reliability.
Data center clients are asking for power solutions that reduce environmental impact without sacrificing uptime, and the AAG delivers on both.
The partnership reflects growing interest in alternatives to conventional diesel backup generation as data centre developers face environmental expectations, permitting requirements and electricity infrastructure constraints.
For commercial adoption, operators will need to evaluate lifetime costs, system maintenance, material replacement, reliability testing and integration with existing electrical infrastructure.
Reducing Diesel Dependence in Data Centre Operations
Diesel generators remain a widely used solution for ensuring that data centres can continue operating during grid outages.
However, their operation creates local air emissions and noise, while fuel storage and testing requirements can complicate facility planning.
The press release cites reporting that Northern Virginia has more than 9,000 backup diesel generators associated with data centre operations, contributing to policy discussions about emissions and development requirements.
As data centre construction accelerates, these concerns are becoming more relevant to local authorities and communities.
Aluminum-air technology could provide another option for operators seeking to reduce direct emissions from backup electricity generation.
Nevertheless, replacing established infrastructure will require evidence that new systems meet the reliability, safety and availability standards expected of critical digital facilities.
The Business Case for Cleaner AI Infrastructure
The white paper highlights an emerging commercial challenge: data centre companies need access to large amounts of dependable electricity, but expanding grid infrastructure can involve substantial cost and long development timelines.
Technologies that provide on-site power during periods of peak demand could potentially reduce the need for some immediate network upgrades and help projects progress sooner.
For businesses investing in AI infrastructure, this creates an incentive to consider power systems not only as emergency equipment but as part of wider energy management strategies.
However, the financial case will depend on whether the benefits of earlier grid access, reduced fuel use and operational flexibility outweigh the costs of installing and maintaining new technology.
Phinergy and Rosendin's second white paper presents aluminum-air generation as one possible solution to these challenges.
As the industry works to balance artificial intelligence growth with electricity availability and environmental commitments, the development of alternative backup power systems could become an increasingly important area of infrastructure investment.
About Phinergy
Phinergy (TASE: PNRG) is a publicly traded clean energy technology company developing aluminum-air power systems for data centres and critical infrastructure. Its technology uses aluminum as a consumable energy carrier to provide on-demand electricity without combustion at the point of use.
The company is developing its Aluminum-Air Generator as an alternative to conventional diesel backup power and is working with industry partners to advance commercial and industrial applications.
Website: https://phinergy.com/
About Rosendin Electric
Rosendin Electric is a US-based, employee-owned electrical contractor headquartered in San Jose, California. Founded in 1919, the company provides electrical and communications engineering and construction services, including work on major data centre and infrastructure projects.
According to the company, Rosendin employs approximately 12,000 people and generates $5.6 billion in revenue.
Website: https://www.rosendin.com/
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Sara Srifi
Sara is a Software Engineering and Business student with a passion for astronomy, cultural studies, and human-centered storytelling. She explores the quiet intersections between science, identity, and imagination, reflecting on how space, art, and society shape the way we understand ourselves and the world around us. Her writing draws on curiosity and lived experience to bridge disciplines and spark dialogue across cultures.
