How ammonia enables off-grid, low-carbon data centers

The rapid growth of AI and digital services is driving an unprecedented surge in data center energy demand, and it shows no signs of slowing. In the US alone, data centers could account for 8 percent of total electricity use by 2030, pushing utilities to expand capacity at a pace they’ve never faced before. Traditionally, this demand has been met with natural gas and diesel generators — dependable, but increasingly out of step with net-zero goals and tightening emissions standards.

That’s why a new approach is gaining traction: behind-the-meter (BTM) data centers powered by on-site renewables like wind and solar, backed by green ammonia-based energy storage. In our latest report, we modelled an 80 MW BTM facility supported by 250 MW of renewable generation, 140 MW of pressurized electrolyzers, and a closed-loop ammonia system that produces, stores and reconverts energy as needed.

This approach doesn’t only reduce carbon; it avoids grid constraints, sidesteps gas infrastructure risks and gives data center operators greater control over energy costs and reliability. And with a modular setup, it’s well-suited to scale alongside AI and high-performance computing demands.

Battery storage has made huge strides but is still best for short-term energy gaps. Hydrogen is a clean option, but storing and moving it is tricky. It needs to be either compressed at high pressure or liquefied at ultra-low temperatures, and transporting it over long distances adds complexity and cost.

Ammonia can be a practical middle ground. It’s essentially hydrogen in a more manageable form — a stable, energy-dense liquid that can be stored on-site and converted back into power when needed. Whether burned in gas turbines or cracked into hydrogen, ammonia steps in when solar or wind output drops.

Ammonia combustion produces almost no CO₂, and the flue gases contain enough water vapor to recover up to one-third. That’s a big plus for water-stressed regions looking to reduce freshwater consumption.

On the logistics side, ammonia has a head start. It already has a global supply chain, standardized storage systems and built-in safety protocols. Unlike hydrogen or CO₂, ammonia doesn’t require extensive new infrastructure. It can be stored in atmospheric tanks, no pipelines, no major permitting delays. That makes it ideal for remote sites, off-grid projects or fast-moving developments where waiting for grid connections just isn’t an option.

Natural gas plants with carbon capture and sequestration (CCS) can help cut emissions, but only if everything lines up just right. One would need reliable access to pipeline gas, a nearby site to store the captured CO₂ and regulatory conditions that support both. Even then, projects often run into permitting delays, costly interconnections and fuel price volatility that can erode their long-term viability.

Ammonia-based systems take a different path. They generate power with zero operational carbon emissions, no need for CCS infrastructure and fewer regulatory complications. That’s a major plus for data center operators, especially as environmental disclosure requirements grow more stringent.

In our modeled system, ammonia-fueled gas turbines helped drive the facility’s carbon intensity down to just 3 grams of CO₂ per kilowatt-hour — more than 100 times cleaner than most natural gas setups.

The economics are catching up fast. As electrolyzer technology improves and renewable energy continues to scale, ammonia systems are becoming increasingly cost-competitive. By the end of the decade, we could see LCOEs in par with natural gas low carbon power plants, putting them on par with fossil fuel options yet without environmental or compliance headaches.