Oct 27, 2025
Designing Tomorrow’s Substations for AI and Crypto Demands
The community of Nesquehoning, PA, looks to be in line for a new substation and upgraded power lines thanks to a 350-megawatt project now under discussion. Things are still in the early stages, and the general public isn't quite sure why the upgrades are necessary. But everything seems to be pointing to the need to support a new AI data center dedicated to cryptocurrency mining.
Those in the know are fully aware of just how much power the two technologies require. AI and cryptocurrency consume significant amounts of energy as separate technologies. But combine them and the power needs are astronomical. So what does that mean for future facility design, specifically in the substation space?
Substation design is a forward-thinking enterprise for the mere fact that substations are intended to last for decades. Today's engineers need to think about tomorrow's power demands. And in a world increasingly dominated by AI, demands are only going to continue growing.
Anticipating Future Crypto Mining
Most of us are familiar with AI and the direction it seems to be taking. Cryptocurrency is another matter. While crypto has been around for a while, it has remained mainly on the fringes as an investment for people who appreciate the excitement of speculating. That is about to change.
The current administration is very positive about cryptocurrency. Likewise, many countries are developing their own central bank digital currencies (CBDCs) which are really just centralized cryptocurrency projects at the end of the day. The big challenge from the energy perspective is that cryptocurrency mining consumes as much power as AI.
Future substation design must accommodate both the high demand and fluctuating loads mining is known for. This means dealing with higher voltages, increased transformer ratings, and better switches capable of fast fault detection and isolation. To top it all off, future substations will have to be able to scale quickly to accommodate rapid load growth.
Space Constraints Are Real
As both AI and cryptocurrency continue being developed, most of the development is taking place in dense urban areas already suffering from space constraints. Utilities are desperate for new land on which to build both generating facilities and substations. Where are they going to put the new substations that AI and cryptocurrency data centers will require?
Meeting this challenge boils down to designing substations that are more compact but capable of handling higher capacities. Expect to see a heavy emphasis on gas-insulated substation (GIS) technology over the next decade or so.
We would expect more development of modular systems as well. Modular design lends itself well to more efficient upgrades, faster installation, and easier scalability as AI and cryptocurrency hubs grow.
Everything Will Have to Be Smart
The proverbial icing on the substation cake will be smart controls. It is no longer a question of whether or not intelligent electronic devices (IEDs), smart sensors, and advanced communication networks will be part of the future substation. It is only a matter of how quickly technology advances and whether or not it will keep up with demand.
Advanced automation will be at the heart of future substation design. It will accommodate real-time monitoring, predictive analytics for maintenance and repairs, and even adaptive protection schemes. Ultimately, the goal will be to keep AI and cryptocurrency data centers running around-the-clock.
Both AI and cryptocurrency have proven themselves to be technologies worthy of further development. So that is exactly what is happening. And as the two technologies mature, they will require a robust power system with substations capable of handling a demand we have not even imagined yet.
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