Techno-economic feasibility of a renewable baseload power supply for data centers
Jasmin Salmi, Markus Salmelin, Altti Meriläinen, Leo Gardemeister, Antti Kosonen, Samuli Honkapuro, Jukka Lassila, Jero Ahola, Anders Vilhelm Lindfors · Energy · 2026
This study examines the techno-economic feasibility of a renewable-based baseload power system designed to supply continuously 1 GW_e of renewable electricity to data centers in Nordic environment. This off-grid system relies specifically on wind and solar power, but also battery energy storage system, and a backup power plant are used to meet the constant energy demand throughout the year. The system configuration is optimized by minimizing the levelized cost of electricity (LCOE) through a particle swarm optimization method. The study evaluates two distinct operational scenarios: a full baseload power supply (8760 h/a) and a scenario with full load hours of at least 8000 h/a, mirroring the operational characteristics of nuclear power plants. The results indicate that the most cost-effective approach necessitates considerable over-dimensioning of renewable generation assets, further demanding substantial energy curtailment. The dependence on backup generation and, by implication, the emerging costs, can be reduced remarkably on the 8000 h/a scenario (15%-24% lower costs). The location of the variable renewable generation assets affects remarkably the cost of supplied electricity, as the LCOE at the most favorable location can be even 24% lower than at the least favorable location. The LCOE for the continuous full-load operation results approximately to 100 €/MWh_e and drops below 80 €/MWh_e in the 8000 h/a scenario in the most favorable location. Especially compared to new nuclear power plants under construction, these results highlight that renewable baseload system remains cost-competitive, even under less-than-optimal conditions, strengthening the case for renewable baseload solutions also in the Nordics.