Data Center Energy Infrastructure

Distributed Energy Systems for Data Centers

A High-Return Energy Infrastructure Investment

Data centers are ideally suited for on-site distributed generation. Large roof areas, high and predictable electrical demand, and strong eligibility for federal, state, and utility incentives allow distributed energy systems to function as cash-flow-positive infrastructure, not just an energy upgrade.

Navigreen Engineering designs and deploys behind-the-meter generation assets for mission-critical facilities — structuring projects so multiple incentive and tax-credit programs combine to deliver positive cash flow within or near the first year of service.

Why Distributed Generation Works for Data Centers

Data centers operate with some of the highest and most consistent load profiles in commercial real estate. That makes every kilowatt produced on-site especially valuable — it offsets premium utility power that would otherwise be purchased at retail rates.

When a project is structured to capture:

  • Federal investment tax credits

  • Accelerated depreciation (MACRS)

  • State and utility incentives

  • Local performance and capacity programs

…the economics become compelling. These funding sources can offset a large portion of installed cost while allowing owners to immediately monetize tax benefits and energy savings.

The result is typically net positive cash flow in Year 1, followed by decades of reduced operating expense, increased NOI, and associated increase in asset value.

How These Projects Create Financial Value

1. Immediate Cash Flow
Behind-the-meter generation produces value the moment it is energized. Combined with tax credits, depreciation, and rebates, many projects generate seven-figure net gains in Year 1, even after financing and operating costs.

2. Permanent NOI Increase
On-site generation displaces utility purchases for 25+ years. This creates a long-term reduction in operating expenses that flows directly into Net Operating Income.

3. Asset Value Growth
Higher NOI translates directly into higher building value. Using market capitalization rates, these projects commonly produce $3–$5 in asset value for every $1 of annual energy savings.

Turn-Key Delivery for Mission-Critical Facilities

Navigreen provides full-service project execution so owners and operators don’t have to manage engineering, construction, financing, and incentive compliance separately.

We handle:

  • Engineering and system design

  • Utility coordination and interconnection

  • Equipment procurement and installation

  • Commissioning and performance validation

  • Tax credit, rebate, and grant administration

  • Financing and ownership structuring

Our goal is to ensure the project is optimized not only for reliability and performance, but also for maximum financial return.

Operational and Environmental Upside

In addition to financial performance, distributed generation:

  • Reduces exposure to utility price volatility and grid congestion

  • Lowers the carbon intensity of mission-critical operations

All without compromising uptime, redundancy, or reliability. Minimizing a site’s environmental impact can also work to alleviate negative sentiment towards its location by the surrounding community.