Rising to the power challenge

Ignacio ‘Nacho’ Gonzalez is Cummins’ Executive Director for Power Generation Markets EMEIA (Europe, Middle East, India and Africa). He is also Vice President of EUROPGEN, the voice of the European generating set industry. Asking the questions is Tony Cheverall, Editor of Cummins Europe Magazine. 

Q: Nacho, can you briefly explain Cummins’ position in the market for standby power? 
Cummins is seen as one of the big players in standby power generation sets, which are critical to ensure continuity of supply at important, often critical locations like hospitals and data centres. Key to our success is our ability to design and manufacture the engine, alternator, and control systems in-house. And we have redefined the limits of standby power with our high-horsepower platforms, most notably the QSK95 series and our latest QSK78 with integrated gearbox as featured in our Centum Series.

Q: Everyone is talking about the ‘AI boom’ which will require more and more data centres to be built. What does it mean for Cummins? 
There’s no doubt the data centre space is flavour of the moment around the world, and my part of the Cummins business is perceived as an AI asset. We are seeing tremendous growth with data centre business, but we’re not being complacent and there are big challenges ahead. 

Q: Can you elaborate? 
Certainly. First, I think the bulk of the growth connected to AI is between two and four years away, and the energy requirements for data centres will get more and more intensive. How Cummins remains at the top occupies a lot of my thoughts. The landscape is getting bigger, competition is bound to increase, and huge and sustained financial support will be required. We have already shown our intent with significant investments in capacity and flexibility at our plants around the world. 

Q: What about the product? What can we expect to see? 
AI is changing the data centre ecosystem. We are packing more power density into a smaller footprint, allowing operators to build smaller ‘power blocks’ or increase the number of server racks in the same facility. We are also developing the node architecture on our gensets to make them a more integral feature of the data centre itself. 

Q: That’s an interesting point: Are you saying you are reinventing the genset?
Yes. We’re moving away from an ‘emergency only’ mindset into the realms of what I call ‘active emergency’. Combined with our BESS (battery energy storage system) solutions, we can not only provide the continuity of power supply the data centre needs but we can help the utility grid if it is stressed or has failed, either by reducing power draw or pumping power back in. Basically, we see scope to become an active participant in the facility’s energy strategy and the broader resilience needs of the grid.

Q: There’s a lot of negative press about data centres and their impact on the environment. What’s your view?
There’s no doubt that data centres will demand more energy, and they will need access to water to assist cooling. But the operators are serious about their commitments to sustainability, and we at Cummins and as an industry will support them. This year the industry is shifting focus from just power usage effectiveness (PUE) to carbon usage effectiveness (CUE), and our push into hydrotreated vegetable oil (HVO) and hydrogen will help operators lower their CUE score. We are also making some great progress with natural gas integrated generators, which can be a reliable bridge to renewable capacity.

Q: So data centre generators aren’t a ‘dirty business’ as some would say? 
Far from it. It was pointed out to me at a recent EUROPGEN meeting that the annual carbon impact of all the standby power generators in Europe added together is less than one week’s worth of the carbon emitted by household gadgets across the continent that are left on standby.

Q: Can the industry go further on emissions standards? 
Yes, I believe there is definitely scope here, certainly in Europe, where we see the most stringent regulations for mobile equipment. I think we can take steps toward reasonable emission compliant levels, for example Stage III.

Q: What role does Cummins technical support play in the data centre strategy? 
A vital one, and it’s a massive commercial advantage for us as a business because the Cummins support network across Europe is extensive and highly skilled. We are always looking to get closer to our customers so we can better understand their needs. Total cost of operation is a constant theme for them and for us. So we focus on the entire lifecycle of the generator set.

Q: Is there a bigger picture for Cummins and the data centre sector? 
If you are hinting at the strategic importance of data in our society then of course the answer is ‘yes’. Think of all the awful things going on in the world and the importance of the safe and secure transfer of data. Data centres must therefore be seen as critical infrastructure, vital to national and international security, and we can help bring resilience to their operation and to the power grid.

Market Value and Capacity Projections 

The European data centre market was worth around $47 billion in 2024/2025 and is projected to nearly double to roughly $97 billion by 2030. 

Data centre power demand in Europe is expected to rise from 96 TWh in 2024 to 168 TWh by 2030 - an increase of nearly 75% in energy consumption. 

The European Commission's AI Continent Action Plan, launched in 2025, has set a target to increase data centre capacity by 200% within the EU over the next five to seven years to secure strategic autonomy in AI.