Oak Ridge Launches New Institute to Solve AI Energy Crisis

Oak Ridge National Laboratory (ORNL) has officially formed the Next Generation Data Centers Institute (NGDCI). This new “institute within an institute” is designed to address the skyrocketing energy demands of AI data centers, which are currently expected to double or triple in the next decade.

The NGDCI will focus on six research areas, including advanced “thermal management” (cooling systems) and better ways to connect data centers to the electric grid. Currently, cooling alone can account for up to 60% of a data center’s energy use. The lab will also use a new modeling tool called MEGA-DC to help leaders forecast the economic costs and benefits of upgrading our power infrastructure.

This move aligns with the broader “Genesis Mission,” a federal effort to use supercomputers like the upcoming “Discovery” system at ORNL to accelerate scientific breakthroughs while keeping the American energy grid stable and secure.

Why this matters for The Knoxville AI Hub

For Knoxville area residents and civic leaders, this is a major economic signal. As ORNL leads the way in making data centers more efficient, East Tennessee reinforces its position as the “Energy Capital of the World.” For small businesses and startups, this research could eventually lower the costs of AI services by making the hardware cheaper to run. For our local utilities and planners, ORNL’s MEGA-DC modeling will provide the blueprint for how to grow our local economy without overtaxing our regional power supply.

View the complete story here: https://www.theregister.com/2026/02/27/oak_ridge_datacenter_power/