Girish Sankar: What A California Solar Project Reveals About AI Infra Development
Madison Energy Infrastructure’s successful installation of rooftop solar on EdgeConnex’s Sacramento data center marks one of the first such collaborations between EQT portfolio companies in renewable energy and digital infrastructure.
Q: What’s special about EdgeConneX’s new data center in California?
Girish Sankar: This is one of the first times two EQT portfolio companies, EdgeConneX and Madison Energy Infrastructure, have worked together to solve data centers’ huge energy demands. They also did it in an unusual way, as far as data centers are concerned. While many data centers rely on buying renewable energy credits or on-site power purchase agreements, producing power through rooftop panels has advantages. It lessens transmission losses and reduces strain on the local grid during peak hours.
The model is also a template for how EQT digital infrastructure and energy portfolio companies can pair distributed energy solutions with mission-critical data centers to help customers accelerate speed-to-power, access cleaner energy options, and gain greater grid flexibility and resiliency, while staying aligned with long-term sustainability goals.
Q: How does this portfolio company collaboration feed into EQT’s wider infrastructure strategy?
Girish Sankar: This is an important proof point in our broader AI infrastructure strategy. Across the EQT portfolio, we see significant opportunities to bring together digital infrastructure, energy solutions and connectivity in ways that help solve the sector’s biggest constraints, in this case, around access to reliable, efficient power.The collaboration between EdgeConneX and Madison Energy Infrastructure offers a tangible example of that approach in action and serves as a critical component of the integrated, end-to-end data center solutions model EQT is aiming to solve.
“The traditional model of plugging into the local utility grid and buying diesel generators for backup is becoming obsolete.”
Q: Why don’t more industrial buildings have rooftop panels?
Girish Sankar: Many industrial roofs are not designed to withstand the heavy strain from dozens of solar panels. These panels are mainly made out of plastic, glass, and metal that house silicon photovoltaic cells, which convert sunlight into electricity. If a panel weighs around 20kg on average, that can quickly stack up.
The Sacramento site is engineered to ensure the structural integrity without compromising the roof’s warranty or durability. The array uses a hybrid racking system that combines mechanical anchoring with ballast.
The Madison and EdgeConneX teams also used power optimizers so each panel pair operates independently. That way, if one panel is shaded or dirty, it doesn’t affect the entire string’s performance, which is a common issue in traditional solar setups. Moreover, the rig is designed to withstand high wind speeds, moderate hail, and seismic conditions.
Q: Given the energy demands of data centers, how should firms be thinking about their power generation?
Girish Sankar: The traditional model of plugging into the local utility grid and buying diesel generators for backup is becoming obsolete. Grid capacities are maxed out in primary data center hubs, such as Northern Virginia or Dublin, and utility interconnection queues can take from three to seven years.
To adapt, firms should adopt the following mindsets: consider power availability first, before choosing a site. Think of data centers as self-contained energy ecosystems. By utilizing microgrids – localized grids that can disconnect from the traditional grid to operate autonomously – data centers can shield themselves from utility outages, peak pricing, and grid instability. Look for firm, dispatchable clean energy (energy available on demand) to bridge the gap when renewables like solar and wind aren’t available, looking toward advanced geothermal, long-duration battery storage, and nuclear energy.
Girish Sankar joined EQT Partners in June 2020. Prior to joining EQT Partners, Girish worked in private equity at Advent International in the TMT team based in London, UK. Prior to Advent, Girish worked as a Management Consultant at McKinsey & Company in New York. Girish holds an MBA from the Wharton School, and an MA in International Studies from the Lauder Institute at the University of Pennsylvania. He received a B.Sc in Economics & Finance from the University of Maryland.
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