Hanwha to set new standards in data center energy management with Microsoft

The artificial intelligence (AI) systems that are now ubiquitous in our day-to-day lives don’t come without their tradeoffs. The vast neural networks behind them demand enormous computing power and in turn, are consuming unprecedented amounts of electricity. This surge is straining energy systems built for another era — infrastructure that was not designed for the constant, high-density loads of AI computing. 

As AI reshapes global industries, there is an urgent need for scalable, more efficient energy solutions. Hanwha has been developing a forward-looking model for data center energy management with Microsoft through integrated, next-generation digital systems. Through the development of AI- and cloud-based power management software, the framework aims to improve operations, enhance energy efficiency and support ongoing efforts toward grid modernization. 

Amid these advances, Youngchoon Park, Head of the Grid and Energy Services Business Unit at Hanwha Qcells, and Ulrich Homann, Corporate Vice President at Microsoft, have introduced a visionary concept capable of unlocking optimal data center operational efficiency. Presented at the APEC CEO Summit Korea 2025, the collaboration highlights a smarter, more resilient approach to managing AI-driven power and industrial growth, setting the stage for broader conversations on how to meet rising energy demand. 

“Many of the repetitive, checklist-style tasks in data center operations can now be handled by intelligent agents that understand objectives,” explains Park. “By bringing AI into energy management, we can turn these systems into partners that plan and optimize operations alongside human supervisors.”

The International Energy Agency (IEA) reports that global data center electricity demand has risen at an average rate of 12% per year over the past five years. By 2030, these facilities could well account for almost 10% of total U.S. electricity use, or double their share today. 

This growth is straining older grids that were not built for the variable loads of modern computing or renewable integration. This is especially true in countries like the U.S., where the grid is not centrally managed but instead relies on multiple regional utilities, complicating large-scale coordination. The result is costly inefficiency — between 20% and 30% of consumed energy is estimated to be lost through load imbalance and over-provisioning. Beyond higher operating costs, this waste translates into increased emissions and reduced energy security, pressures that ripple across economies trying to decarbonize. 

Park and Homann unveiled a blueprint for an integrated, AI-driven energy management model designed to address these challenges and build a more resilient power ecosystem. Park described the system as an autonomous orchestrator — AI capable of understanding and regulating complex energy flows to maintain stable operations while minimizing emissions. 

“With agentic AI, software is coupled with intelligence and knowledge to react to things it hasn’t seen before,” adds Homann. “We’re getting to a point where it can decide to pass a case to a human operator or handle it automatically. Our job is to make sure that the AI knows what the goals are and stays within the guardrails that we set as humans, because our job is to define the what and the where, and the AI can work with us on the how.”

Through this collaboration, Hanwha intends to establish a global framework for AI-driven Energy-as-a-Service (EaaS) with Microsoft, linking clean generation, energy storage and intelligent control software within a single adaptive network. With a shared objective to enable data center capacity expansion and reduce the environmental impact, the two companies view the framework as a strategic step toward making AI both a driver of productivity and a tool for operational efficiency.

The approach unites Hanwha’s expertise in solar, battery storage, and advanced energy solutions with Microsoft’s strengths in cloud computing, AI, and digital twin simulation. To achieve its objectives, the system combines advanced analytics and cloud connectivity to forecast demand, balance distributed resources, and automate participation in power markets. Real-time monitoring allocates energy precisely where it’s needed, while integrated storage mitigates the intermittency of renewables. Hanwha Qcells predicts that this architecture will reduce energy costs by 20% to 30%, cut greenhouse gas emissions by up to 35%, and deliver incident response speeds nearly three times faster through predictive automation.

These improvements are particularly meaningful in a sector that demands both high efficiency and operational reliability. For operators, greater efficiency not only reduces costs but also helps meet regulatory requirements in an increasingly carbon-conscious market. The system’s modular, data-driven design also makes it scalable across facilities and adaptable to diverse grid environments — potentially extending its integration beyond AI data centers to manufacturing and other power-intensive sectors. These advancements reflect more than operational gains; they represent a strategic move toward building a more resilient, intelligent and sustainable energy ecosystem. An S&P Global Tier 1 Cleantech company, Hanwha Qcells continues to demonstrate its long-term commitment to advancing advanced energy technologies and building the kind of resilient infrastructure needed to power long-term growth. 

With energy systems becoming more distributed and complex, standardized management platforms and interoperable technologies will be key to maintaining reliability and controlling costs.

As AI and automation continue to transform industries, energy will sit at the center of that change. With this new model, Hanwha demonstrates how technological innovation in power management can underpin this phase of digital progress — the so-called Intelligent Age — by delivering next-generation systems that are both intelligent and sustainable.

This content was produced in partnership with Forbes BrandVoice.