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Once the boundary is fixed, the design team can select utility feeders, a substation and transformers, medium-voltage switchgear, hall distribution, UPS systems, generators, chillers or liquid-cooling equipment, pumps, heat rejection, fuel systems and controls. Rack density, availability objectives, climate, water, emissions limits, construction phasing and expansion plans determine the ratings and redundancy. No responsible engineer can produce a universal generator, transformer or chiller count from the title alone.
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Start by defining the 40 MW boundary
Data-center announcements use “MW” for different boundaries. A project may mean critical IT power—the electrical capacity delivered to servers, storage and network equipment—or the maximum demand at the utility meter, which also includes cooling, pumps, lighting, losses and other facility services.
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| Meaning of 40 MW | What it includes | Design consequence |
|---|---|---|
| 40 MW of critical IT load | Power available to IT equipment | Total facility demand must be higher because cooling and other overhead are added. |
| 40 MW of total facility or utility capacity | IT load plus mechanical and electrical overhead | The allowable IT load is lower and depends on the achieved PUE and operating conditions. |
Power usage effectiveness (PUE) is total data-center energy divided by IT-equipment energy. If a facility actually operated at a PUE of 1.5, 40 MW of IT load would imply about 60 MW of total demand in the same operating condition. That arithmetic is an illustration, not a construction rating: PUE varies with weather, load, redundancy, maintenance state and measurement boundary.
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Principal Real Estate’s overview attributes an industry-average comparison to the Uptime Institute Global Data Center Survey 2023: about 2.5 average PUE in 2007 versus just above 1.5 in 2023. Those figures describe reported averages, not a guaranteed target for a new facility. A California Energy Commission (CEC) project description published in July 2025 used a 1.20 average annual PUE assumption for a different project with a 76.8 MW critical-IT design load. That assumption cannot be transferred to another site or climate.
The electrical system is a chain, not a single piece of equipment
A conceptual power path is:
- Utility transmission or distribution connection.
- Incoming feeders and the utility or owner substation, where required.
- Transformers that reduce the service voltage.
- Medium-voltage switchgear, buses and protection equipment.
- Building and data-hall distribution.
- UPS systems and batteries for protected loads.
- Power-distribution units, busways or remote panels feeding IT racks.
The actual service voltage, feeder count and transformer arrangement come from the serving utility, interconnection study, fault-duty limits, site location and phasing plan. Some operators build an on-site substation; others take service through utility-owned equipment. NVIDIA’s August 2026 DSX Facilities Infrastructure Reference Design Overview illustrates a high-voltage service substation and a 34.5 kV backbone in a 250 MW-class AI reference, while emphasizing that site configurations vary. The voltage is an example, not a prescription for a 40 MW project.
Utility service and substation capacity
The project must establish how much firm and diverse utility capacity is available, when it can be delivered, and whether separate utility paths can be maintained independently. The interconnection schedule can become a critical-path item: a building may be ready before the utility can energize a new feeder or substation.
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Distribution to halls and racks
After the service entrance, medium-voltage switchgear and transformers distribute power to electrical rooms and data halls. The final architecture may use overhead busway, floor-standing power-distribution units, remote panels or a combination. Distribution must support maintenance without taking an entire hall offline if the availability objective requires concurrent maintainability.
Rack-level design depends on tenant equipment. Traditional servers may use dual power supplies and two independent paths. High-density GPU or accelerator cabinets can impose much higher branch-circuit current, busway capacity and local heat rejection than general-purpose racks. A 40 MW headline does not reveal how many racks, halls or cabinets are involved.
UPS and generators solve different outage problems
UPS equipment responds immediately to a utility disturbance. Its inverter, batteries and bypass equipment keep protected IT and selected mechanical, network or control loads within their required voltage and frequency limits while the standby plant starts and transfers. Battery autonomy is set by the transfer sequence, ride-through requirement and protected load—not by the 40 MW label.
Generators provide sustained emergency power after the UPS bridge. The design team must decide which loads are on the emergency bus: critical IT, UPS cooling, pumps, chillers, network rooms, fire and life-safety systems, controls, fuel systems and any mechanical plant needed to prevent a thermal event. Backing up every cooling load can produce a very different generator plant from backing up only selected loops.
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Redundancy and transfer decisions
Reliability is expressed through a topology and an operating procedure, not merely a number of machines. Questions include whether one unit may be out for maintenance, whether utility paths are physically diverse, whether a generator can carry the full protected load after the largest unit fails, and whether transfers are open or closed transition.
The CEC’s July 2025 SJ04 project description gives a concrete example of those choices: a four-to-make-three generator arrangement for critical IT on each floor and a separate two-to-make-one arrangement for a water-storage yard. Its UPS bridges an open-transition utility-to-generator transfer, with battery intervals specified for the project’s particular loads. These arrangements illustrate questions to answer; they are not generic requirements for every 40 MW site.
Fuel, testing and emissions
Standby generation requires fuel storage, polishing or treatment where applicable, transfer pumps, exhaust systems, fire protection, noise control and a testing regime. Runtime is an owner and authority decision. One proposed California project describes up to 72 hours of fuel storage, but that figure belongs to that proposal and does not establish a universal runtime.
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Generator emissions permits, testing limits, air-quality rules, emergency-use definitions and noise ordinances can constrain both the number of engines and how often they may run. These requirements must be checked with local authorities before equipment is selected.
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Battery energy storage is optional and case-specific
Battery energy-storage systems (BESS) can buffer a facility, support grid services or reduce the instantaneous impact of a transition. They are not automatically a replacement for UPS batteries or standby generators. NVIDIA states that BESS applicability and sizing are evaluated case by case with original-equipment manufacturers, grid operators and regulators, based on the site power architecture, operating objectives, grid requirements and product-specific requirements.
Cooling capacity follows heat, density and weather
Nearly all electrical energy consumed by IT equipment becomes heat. The cooling plant therefore follows the real operating IT load, plus heat from electrical losses and other spaces, at the design outdoor condition. A 40 MW IT load is an enormous thermal source, but its cooling tonnage cannot be selected without rack density, supply-air temperatures, humidity limits, redundancy and local weather data.
Air cooling with chilled water
In a conventional arrangement, computer-room air handlers (CRAHs) circulate supply air through the data hall. The CRAHs transfer heat to a chilled-water loop; chillers remove that heat, and pumps move water between the central plant and air handlers. Hot-aisle or cold-aisle containment limits mixing between server exhaust and supply air, improving the useful capacity of each air handler.
The plant also needs expansion tanks, water treatment, isolation valves, controls, leak detection, maintenance bypasses and a heat-rejection system. Chiller and pump selection must account for part-load efficiency, design-day temperature, waterside temperatures and the loss of a component under the chosen redundancy scheme.
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Direct-to-chip and other liquid cooling
Higher-density compute may exceed practical air-cooling limits. Direct-to-chip systems circulate a secondary fluid through cold plates on processors and transfer heat through coolant-distribution units (CDUs). Rear-door heat exchangers capture exhaust heat at the rack, while immersion systems place specialized servers in a dielectric fluid. Immersion requires compatible servers, tanks, fluid management and dedicated service procedures; the facility overview used here describes it as not yet widespread.
NVIDIA’s DSX reference describes two facility-water temperature loops, central utility buildings with chillers and pumps, dry coolers for outdoor heat rejection, CRAHs for air-cooled loads and redundant liquid-to-liquid CDUs feeding a separate technical loop for GPU cold plates. That is an AI-oriented reference architecture, not a universal 40 MW template. Its cabinet thermal figures apply to that product-generation context and should not be assigned to unspecified racks.
Heat rejection options
Heat removed from the data halls must ultimately be rejected outdoors. Options include air-cooled or dry coolers, cooling towers and other water-based evaporative systems. Closed-loop air-cooled chillers generally use less water but more energy than water-based evaporative cooling, all else equal, according to Principal Real Estate. The choice depends on water availability, electricity price and carbon intensity, humidity, acoustic limits, maintenance capability and discharge permits.
NVIDIA’s dry-cooler reference reports no evaporative water use for that heat-rejection path. It also notes that its GPU cooling plant is not UPS-backed and relies on loop thermal mass until generation comes online. That illustrates an important design decision: the cooling system’s ride-through strategy must be stated explicitly. Some facilities back up the entire cooling plant; others use stored thermal capacity, selective loads or controlled IT shutdown.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to turn the headline into an engineering basis
A project team can move from a 40 MW announcement to a defensible conceptual design by fixing the following inputs in order:
- Define the boundary. State whether 40 MW is critical IT, total facility demand, utility import, or a phased capacity. Identify normal, peak and future loads.
- Build the IT load profile. List rack count, average and maximum rack power, voltage, power factor, dual-cord behavior, storage and network loads, and tenant growth assumptions.
- Set the availability objective. Document allowed downtime, maintenance mode, utility diversity, UPS topology, generator failure case, transfer time and which mechanical and control loads remain energized.
- Select climate and water design conditions. Use the project location’s design dry-bulb and wet-bulb temperatures, humidity, seismic criteria, water source, discharge rules and drought constraints.
- Choose the thermal architecture. Decide what proportion is air-cooled, rear-door assisted, direct-to-chip or immersion, and define supply temperatures and coolant quality.
- Calculate peak electrical demand. Add IT, cooling, pumps, fans, lighting, losses, offices, fire systems and charging loads at the relevant design condition. Apply a stated PUE assumption only as a planning input.
- Develop utility and backup options. Study feeder capacity, substation land, transformer ratings, generator arrangement, fuel runtime, emissions and BESS roles.
- Check maintainability and expansion. Reserve electrical rooms, pipe corridors, generator pads, fuel capacity, cooling towers or dry-cooler banks, and space for later halls.
- Verify compliance. A registered engineer and the serving utility must confirm codes, protection coordination, fault duty, grounding, fire protection, generator permits, water approvals and commissioning requirements.
What published projects show—and what they do not
| Example | Published figures or arrangement | Proper use of the example |
|---|---|---|
| Equans data-center case study | 40 MW of critical IT power | Confirms that a 40 MW critical-IT project is a real project scale; it does not supply a generic equipment schedule. |
| NVIDIA DSX reference, August 2026 | 250 MW-class reference; high-voltage substation; 34.5 kV backbone; CRAHs, dry coolers and liquid-to-liquid CDUs | Illustrates one AI-oriented architecture and its site-specific nature. |
| CEC SJ04 description, July 2025 | 76.8 MW critical-IT design load; 1.20 average annual PUE assumption; four-to-make-three and two-to-make-one generator arrangements | Shows how a regulatory project states load, PUE and redundancy assumptions; it is not a 40 MW requirement. |
| Separate proposed CEC site | 99 MW site; 56 standby generators rated at 3 MW each; 60 kV on-site substation | Demonstrates one possible California utility and generator scale, subject to proposal status and local approvals. |
| Another proposed project | Two independent 115 kV feeders; redundant 60/80/100 MVA transformers; up to 72 hours of fuel storage | Shows how feeder diversity, transformer redundancy and runtime can differ by site. |
The California records are regulatory examples with different scopes and proposed-project statuses. They should be checked for current status and local requirements before being treated as operating facts.
Common planning mistakes
- Calling 40 MW a complete design basis. Without the load boundary, PUE, rack density and climate, the number cannot determine equipment ratings.
- Multiplying IT megawatts into a generator count. Generator loading, redundancy, cooling auxiliaries, motor starting, transfer sequence and emissions limits all affect the result.
- Backing up IT but not its thermal path. A UPS-backed server room still needs a defined cooling ride-through strategy.
- Assuming liquid cooling eliminates air infrastructure. Most mixed facilities still need CRAHs or room-level air management for memory, storage, power supplies and residual heat.
- Treating a PUE average as a guaranteed peak value. Industry averages and annual assumptions do not replace a design-day calculation.
- Ignoring water and permitting until late design. Evaporative systems may need makeup water and discharge approvals; dry systems may increase electrical consumption and footprint.
- Copying a hyperscale reference voltage or topology. Utility interconnection rules, available voltage, land and local code determine the appropriate arrangement.
The practical answer
For a 40 MW data center, begin by stating exactly what the 40 MW measures. Then design the utility service, substation and distribution around that boundary; add UPS capacity for immediate ride-through and generators for the protected loads that must run for the required outage duration; and size air, chilled-water or liquid-cooling systems for the actual rack heat, design weather, redundancy and water constraints. The infrastructure blocks are recognizable, but their ratings, quantities and topology are site-specific. A construction-ready design requires a load schedule, utility study, thermal model, reliability criteria and permitting review—not a headline megawatt figure alone.
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