Simon Tusha, Founder and CTO of TecFusions, in this interview discusses biggest challenges that data center operators face, TECfusions’ key strategic goals and the future of data centers:

Hello Simon, walk us through your journey and experiences that led to the founding of TECfusions.

My journey in the data center industry started with AOL’s first data center project in Northern Virginia. Back then, the data center market as we know it didn’t exist. I was part of the development of the AboveNet and Global Crossing assets, which played a significant role in shaping Ashburn into the data center hub it has become today. In 2001, I founded my first company, Mission Critical Enterprises (MC Enterprises), which primarily served the banking sector with clients like HSBC and JPMorgan. Back then, a 3-5 MW data center was considered massive, a stark contrast to the high-density demands we see today.

As my career progressed, I worked on data center projects all around the world. I joined Google for a time, and with initial builds we were simply taking advantage of all the excess capacity on the grid. Google was leveraging excess power from the Columbia River, using energy that would have otherwise gone to waste, in a time when power usage effectiveness (PUE) was often abysmal due to the sheer availability and low cost of power. By the mid-2000s, the American industrial landscape had shifted. The manufacturing base had declined, and suddenly, there was an abundance of power with no industry to consume it. This enabled data centers to capitalize on that untapped energy, and around 2001 when the dot-com bubble burst, we saw companies like Digital Realty and DuPont Fabros begin to thrive in this opportunistic environment.

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After Google, I moved to QTS, where I started exploring adaptive reuse as a model. I worked on projects involving old semiconductor fabs, and they were incredibly fast and successful. This solidified in my mind that adaptive reuse was the right approach for the industry. However, the market wasn’t quite ready for it. Most organizations preferred greenfield builds, believing them to be more efficient—a misconception that still exists today. It baffles me when companies purchase older assets only to tear them down, ignoring the potential of embedded carbon in these structures. Why not do the right thing and repurpose what’s already there?

I stepped away from the industry for some time, becoming more involved in community initiatives, such as building wineries and supporting ocean conservation. A series of medical challenges also brought me a sense of clarity. In 2023, it became clear that the world was heading toward a major shift—AI was on the rise, and everyone was running out of power. Companies were searching for existing electrical infrastructure and gas resources, but no one was considering the full picture of sustainability.

That’s when I founded TECfusions. The name represents the fusion of multiple elements—technology, energy, and community. Data centers traditionally have taken more from the community than they’ve given, consuming resources that could be better utilized elsewhere. At TECfusions, we’ve shifted the model to give power back to the grid and even provide district heating and cooling, responsibly utilizing waste products. Our facilities in Clarksville and Tucson were on the market for years, overlooked because they weren’t the “bright and shiny” new builds. But they were the right ones—industrial assets with embedded carbon that we could repurpose for the future.

The market is slowly coming around to this way of thinking, though it’s been a gradual process. We still encounter clients demanding Tier 3 and Tier 4 processes for things that simply don’t require it, despite the fact that higher-tier data centers tend to crash more frequently than Tier 1 facilities. The industry has a lot to learn, but we’re making strides in the right direction.

What are the biggest challenges that data center operators face in achieving true sustainability, and how can they overcome these obstacles?

One of the biggest challenges in achieving sustainability is the focus on renewable energy, particularly solar and wind. While these sources are often seen as the cornerstone of sustainable energy, they aren’t as reliable as people might believe—especially when it comes to powering data centers that require constant uptime. Solar and wind energy are intermittent and dependent on environmental factors, making them less suited for 24/7 operations without significant energy storage solutions in place. Sometimes they can even be worse for the surrounding environment, precisely the opposite of what we’re trying to achieve.

At TECfusions, we’ve been exploring alternatives, such as new intellectual property entering the market that enables zero-carbon engines and advanced hydroelectric options. These are truly sustainable solutions that can run continuously, no matter the external conditions. The key is finding energy sources that are both clean and consistent, and that’s where innovations in hydro and other technologies come into play.

For data centers to truly become more sustainable, operators need to shift from being isolated entities to becoming integral parts of the community and energy grid. Historically, data centers have operated with a level of detachment, focusing only on their own operational needs. However, for long-term sustainability, we need to collaborate with local jurisdictions, utilities, and Independent System Operators (ISOs) to understand how the grid functions. By working in tandem with the grid and the broader energy ecosystem, data centers can not only optimize their own energy use but also support the grid’s overall stability.

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This requires a shift in mindset—viewing data centers not as isolated energy consumers but as active participants in energy management and distribution. When operators engage with the grid and invest in local energy resources, the whole industry stands to benefit from more efficient and sustainable operations.

What are TECfusions’ key strategic goals for the coming years in terms of expanding sustainable data center operations?

One of our primary strategic goals focuses on on-site power generation. This is essential to achieving true sustainability. By generating power behind the meter, we not only supply our data centers with the energy they need, but also have the ability to send excess energy back to the grid, supporting the surrounding community. One of our primary goals at TECfusions is to create data centers that contribute positively to the areas they operate in—whether through energy sharing, providing district heating and cooling, or simply reducing the strain on public resources.

In the coming years, we aim to build sites capable of generating multiple gigawatts of power on-site. Even if the existing data center facilities are on the smaller side of TECfusions portfolio, say in the 200-300 MW range, with the capability for on-site power generation they could exceed 2 GW. By decentralizing power production and interconnecting with the grid when possible, we not only make our data centers more self-sufficient but also help stabilize the grid and offer surplus energy to local communities.

Our ultimate vision is to create sustainable operations where data centers aren’t just consuming energy but are also giving back—supporting the very people who live and work in these areas. By expanding our model of on-site generation and power redistribution, we believe we can revolutionize how data centers function in the energy ecosystem.

How do you envision the future of data centers in the next 5-10 years, particularly in terms of integrating AI and reducing environmental impact?

Over the next 5-10 years, we’ll witness a significant shift in the data center landscape, driven largely by the increasing demands of AI and the limitations of traditional utility grids. As AI workloads continue to grow, the densities required to support them will exceed what the current grid can handle. This will lead to a future where data centers become more self-sufficient, essentially functioning as “islands” in the energy ecosystem, with on-site generation and storage becoming the norm.

We’re already seeing a push towards higher-density computing environments, but AI is going to push this even further. AI applications require immense amounts of computational power, and as these demands increase, we’ll have to explore new ways to cool and power these systems efficiently. For instance, immersion cooling is being discussed as a potential solution, and there are small-scale use cases out there, but we haven’t seen this deployed at scale yet—certainly not at the 300 MW levels that AI-driven data centers will require.

In the coming years, I believe we’ll see a more realistic approach to the integration of advanced technologies, with the industry “right-sizing” these theoretical concepts to align with what can actually be developed. This means finding the balance between the innovative solutions we talk about today and the practicalities of scaling them for real-world deployment. One thing is clear: the future of data centers will involve a combination of AI-driven innovation and more localized, self-reliant energy solutions to ensure sustainability and efficiency.

In your opinion, what are the most impactful innovations in data centers today that can drive the sustainability agenda forward?

The most impactful innovation right now isn’t a specific technology, but rather the shift toward collaboration across the industry. Data centers have historically operated in silos, but with the growing complexity and demand for sustainable solutions, we need to work together more than ever. There’s no longer a need for excessive competition—our focus should be on collaboration to address the enormous needs and requirements of the industry.

The key is to align engineering and energy usage with the actual needs of the client. By mapping out energy consumption to what is being delivered to the end user, we can design more efficient systems that not only meet operational demands but also drive sustainability forward. It’s about understanding the big picture and recognizing that working together will benefit both the industry and the communities we serve.

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Before we close, what advice would you give to entrepreneurs and IT leaders looking to build more sustainable and socially impactful businesses?

First and foremost, stand in your own truth. Don’t just follow what’s politically or socially popular—make decisions based on what is environmentally and engineeringly sound. A prime example of this is the increasing risk of fires in hurricane-impacted areas due to improper EV deployments. Doing what’s right from a technical standpoint is more important than following trends.

Second, invest your time, talent, and resources in what’s truly achievable. Sustainability is about long-term impact, not short-term fixes, so focus on what can be implemented effectively.

Finally, focus on the work, not the headlines. When we started TECfusions, our priority wasn’t marketing; it was about getting the work done right. The headlines and recognition will follow naturally. Do the work first, and let your impact speak for itself.

Thank you, Simon, for sharing your insights with us.

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