Latest / Becker’s Healthcare Podcast / Preparing Healthcare Infrastructure for AI and Rising Power Demand
Transcript
- 0:00- Hello, everyone. This is Erica Spicer Mason with
- 0:02- Becker's Healthcare.
- 0:04- Thank you so much for tuning into the
- 0:05- Becker's Healthcare podcast series.
- 0:08- Today, we're going to talk about what the
- 0:10- rapid growth of AI and digital infrastructure
- 0:13- means for health systems,
- 0:14- from power demand and grid constraints to long
- 0:17- term infrastructure planning.
- 0:19- And joining me for this conversation, we have
- 0:21- Greg Castle, The US power and grid commercial
- 0:24- leader at Schneider Electric,
- 0:26- and James VanCannon,
- 0:27- health care segment manager
- 0:29- for strategic accounts and US Digital Power of
- 0:32- Schneider Electric.
- 0:33- Greg, James, great to have you both with
- 0:35- us today. Thank you for being here. Yeah.
- 0:38- Very excited.
- 0:39- Absolutely. Glad to be here.
- 0:41- Well, glad to have you both on the
- 0:43- line. And let's go ahead and get started
- 0:45- with some introductions just to give our listeners
- 0:48- a little bit of context on the perspective
- 0:50- you're bringing to the conversation today.
- 0:52- Can you both share just a bit about
- 0:54- yourself, your role,
- 0:55- and anything else you think is important for
- 0:57- listeners to know? Greg, we can have you
- 0:59- get us started.
- 1:00- Very good. Yeah. Again, I appreciate the opportunity
- 1:03- to be here.
- 1:04- Greg Castle. So I lead our commercial activities
- 1:07- for our power and grid segment in North
- 1:09- America for Schneider Electric.
- 1:11- That was Schneider Electric for twelve years and
- 1:14- in this role for three.
- 1:16- Power and grid for Schneider is utilities, renewable
- 1:19- developers,
- 1:21- independent power producers,
- 1:23- and really in the last twelve and eighteen
- 1:25- months,
- 1:26- really a concerted focus on how we can
- 1:28- enable
- 1:29- speed to power
- 1:31- more for the data center build out that
- 1:33- that we're all aware of.
- 1:35- So I I guess the perspective I'm I'm
- 1:37- bringing is really the the front seat from
- 1:39- a utility and power generation aspect.
- 1:42- Fantastic.
- 1:43- Greg, thank you. And James, how about you?
- 1:46- So I'm the, strategic accounts, health care segment
- 1:49- manager for Digital Power.
- 1:51- I've been with the company for about thirty
- 1:52- years in various technical roles as well as
- 1:55- in sales roles.
- 1:57- My focus has really been in helping a
- 1:59- lot of the nation's largest healthcare systems
- 2:01- improve their, you know, power reliability,
- 2:04- their energy visibility,
- 2:06- and their overall operational resilience.
- 2:09- And from my perspective,
- 2:10- electricity has become,
- 2:12- one of those
- 2:13- critical things in health care is really like
- 2:15- water or oxygen.
- 2:17- And really, I see that every clinical system,
- 2:21- diagnostic platform, operating room, and now increasingly every
- 2:24- AI application
- 2:26- really depends on reliable power. So I'm really
- 2:28- excited to be able to talk about this
- 2:30- incredibly important topic.
- 2:32- Yeah. Yeah. Thanks, James.
- 2:34- And I'm excited to talk about this topic
- 2:36- too because we have many conversations about innovation
- 2:40- with AI in the health care space, but
- 2:43- not so many conversations about what this looks
- 2:46- like from a back end perspective, from a
- 2:48- power grid and electricity perspective. And I think
- 2:51- it's a really crucial piece, James, as you
- 2:53- just noted. So let's go ahead and and
- 2:55- start with kind of what the scene is
- 2:57- looking like right now.
- 2:59- Greg, I know that data center growth has
- 3:01- become a real factor in grid planning in
- 3:04- the last few years with the growth of
- 3:06- AI use.
- 3:07- So can you set the stage for us
- 3:09- and tell us a little bit about what's
- 3:10- driving that demand and and where it's showing
- 3:13- up most acutely?
- 3:15- Yeah. Absolutely.
- 3:16- What a wild ride it's been over the
- 3:18- last twelve to eighteen months with the, the
- 3:20- introduction and kind of boom of,
- 3:22- artificial intelligence,
- 3:24- really around inference and generative.
- 3:27- I think the most astonishing
- 3:30- aspect,
- 3:31- for most, especially if you're not as close
- 3:33- to the energy side,
- 3:35- is the pure scale of of what we're
- 3:37- experiencing, specifically in The US.
- 3:41- To put it in perspective,
- 3:43- you know, just in the last three years,
- 3:45- there's,
- 3:46- been 487
- 3:48- gigawatts
- 3:49- worth of announced
- 3:51- data center,
- 3:52- projects that are planning to be built within
- 3:54- the next five years.
- 3:56- And even if half of that,
- 3:58- actually comes to fruition, it's it's quite astonishing.
- 4:02- And if you dig a little bit deeper,
- 4:05- about a 150
- 4:07- gigawatts
- 4:08- worth of that power generation,
- 4:11- because of the long five to seven year
- 4:13- plus interconnect,
- 4:15- challenge that we're all aware of,
- 4:17- is planning to go completely off grid.
- 4:19- So I landed power generation
- 4:22- at the scale of a 150 gigawatts,
- 4:25- to be built in the next five years.
- 4:28- And I guess just to put that a
- 4:30- little more in perspective, that's the equivalent
- 4:34- of France and The UK
- 4:35- combined from a power generation standpoint,
- 4:38- or another perspective would be,
- 4:41- 25%
- 4:42- of The entire US peak demand today.
- 4:46- So the scale of what we're experiencing
- 4:49- is really unprecedented and will have
- 4:52- ripple effects across many aspects even in ancillary
- 4:55- industries from a supply chain standpoint, from a
- 4:58- grid reliability
- 4:59- standpoint,
- 5:00- grid capacity standpoint. And I think
- 5:03- the landscape is quickly evolving at a pace
- 5:06- we've never seen before.
- 5:08- And so it's really critical that,
- 5:11- you know, everyone, even if not directly related
- 5:14- to data centers, needs to be aware in
- 5:16- order to more strategically plan and,
- 5:20- be prepared for how these impacts could potentially
- 5:24- come down to, you know, health care facilities.
- 5:27- Yeah. And Greg, that was exactly where I
- 5:30- was hoping to
- 5:31- to go a little bit deeper. You know,
- 5:33- some of these numbers you're sharing are
- 5:35- astounding.
- 5:36- And
- 5:37- I'm curious,
- 5:38- if we boil this all down for a
- 5:39- health system, what does
- 5:42- this really significant growth, what does it translate
- 5:44- to on the ground? Are we talking higher
- 5:46- energy costs, risks of outages,
- 5:48- or or something else?
- 5:51- It's good good question.
- 5:53- Hopefully, it won't necessarily impact
- 5:56- rate payers and rates in general, but that's
- 5:59- largely dependent on, you know, kind of the
- 6:01- evolving regulatory and,
- 6:03- legislative,
- 6:05- landscape.
- 6:06- So I think that's definitely an aspect and
- 6:09- obviously we've seen that trend over the last
- 6:12- two to three years,
- 6:13- increase rates.
- 6:16- But reliability,
- 6:17- you know, I think is also a concern.
- 6:20- Schneider Electric's,
- 6:22- own research institute has has done some pretty
- 6:24- extensive research and can be found on our
- 6:26- website.
- 6:27- But we're
- 6:28- what we're seeing or predicting
- 6:31- is really kind of an increase in,
- 6:33- reliability
- 6:34- challenges as we look at kind of 2029,
- 6:37- 2030
- 6:38- time frame.
- 6:39- And so that certainly has to be a
- 6:41- critical factor when evaluating,
- 6:43- you know, your current energy spend as well
- 6:45- as reliability
- 6:47- aspects,
- 6:48- you know, in particular for health care, which
- 6:50- is obviously paramount and critical.
- 6:53- Yeah. Greg, appreciate you putting that all into
- 6:55- perspective
- 6:56- for our leaders who are listening in.
- 6:58- James, I wanna turn it over to you
- 7:00- next and talk a little bit about,
- 7:02- what this is all looking like at the
- 7:03- enterprise level. You know, as organizations are scaling
- 7:07- AI from pilots to enterprise wide deployment, we're
- 7:11- hearing more about the infrastructure that's required to
- 7:14- support those efforts. So
- 7:16- from the supply side,
- 7:18- James, what are you seeing in terms of
- 7:20- power, demand, grid capacity, and facility readiness?
- 7:25- So one of the things I I think
- 7:26- is the biggest misconceptions, first of all, I
- 7:28- just wanna kinda jump back to kinda like
- 7:30- what Greg was talking about, was is that
- 7:32- AI, preparation is primarily just an IT initiative.
- 7:36- I think that that is really
- 7:38- kind of a misconception for sure, like I
- 7:40- said. But I think of it as one
- 7:42- of these,
- 7:43- life changing, facility altering changes
- 7:46- that we're just beginning to think about.
- 7:49- And in reality, the large scale AI becomes
- 7:51- a facility infrastructure and operations initiative,
- 7:54- of course, very quickly when we think about
- 7:56- it.
- 7:57- As healthcare
- 7:58- organizations move from experimenting with AI to deploying
- 8:02- it across the, you know, the clinical side,
- 8:05- the the operational, and some of the administrative
- 8:07- workflows that have the underlying infrastructure requirements,
- 8:11- we start to understand that it becomes really
- 8:13- significant.
- 8:14- We're seeing increased demand for power capacity, the
- 8:17- cooling, the network infrastructure,
- 8:20- and of course resiliency planning, which is all
- 8:22- about, you know, making sure that we have
- 8:24- that patient care taken care of. And then
- 8:27- of course, on the supply side utilities across
- 8:29- many regions, they're already evaluating, you know, how
- 8:33- do we support this rapidly growing load from
- 8:36- a hyperscale in the data center space?
- 8:38- Internal to Schneider, there's been research and industry
- 8:41- reports that show data
- 8:43- centers are really,
- 8:46- at a point where
- 8:48- the consumption
- 8:49- is accelerating dramatically like Greg had talked about,
- 8:52- and it's and it's kind of driving these
- 8:54- AI loads
- 8:55- to the point that
- 8:56- for a health organizations,
- 8:58- they really need to be thinking about power
- 9:01- availability and long term capacity planning. And it
- 9:04- really just can't be something that's, you know,
- 9:07- taken for granted or maybe they'll wait till
- 9:09- the next
- 9:10- study or something. They really need to have
- 9:12- a a,
- 9:13- one three five plan now.
- 9:16- Yeah. Yeah. I can sense the urgency behind
- 9:19- that, James.
- 9:20- I'm also curious.
- 9:22- You know, there's a lot of discussion in
- 9:24- the AI space about cloud capabilities. So
- 9:28- for AI workload specifically, how does the on
- 9:31- premise versus cloud decision
- 9:33- play out differently for a hospital? And what
- 9:35- do you think leaders should really be weighing
- 9:37- there?
- 9:38- Well, that's a that's a very interesting question
- 9:40- because
- 9:41- for, you know, hospitals and for many people,
- 9:43- they think, oh, well, the easy answer is
- 9:45- we'll just use the cloud. Right? Therefore, I
- 9:48- don't have to worry about anything for my
- 9:50- infrastructure
- 9:51- at my particular hospital.
- 9:53- But it's really matching
- 9:55- the workload
- 9:57- and the mission
- 9:58- to what's there. And so hospitals are are
- 10:01- really
- 10:02- designed
- 10:03- and and really by code required to defend
- 10:05- in place.
- 10:06- So when everything else goes down, when the
- 10:08- infrastructure goes down within the city,
- 10:11- they need to keep running. They need to
- 10:12- make sure that they have optimal patient care.
- 10:15- And so with that,
- 10:17- they need to then look at that scalability
- 10:21- and what does that mean for the hospital?
- 10:23- I can't really all go to the cloud
- 10:26- because I can't have all my decisions be
- 10:28- there because I may lose communications. So now
- 10:30- what do I do? So then that pushes
- 10:32- the the,
- 10:33- health care
- 10:34- facility into a decision of, well, we probably
- 10:37- are going to have to look at maybe
- 10:39- a hybrid in this particular situation.
- 10:41- And so they're gonna be looking at, you
- 10:43- know, where basically latency,
- 10:46- data governance,
- 10:47- cybersecurity requirements, the operational,
- 10:49- contingency
- 10:51- may drive the organization
- 10:53- for localized,
- 10:54- computerized,
- 10:56- sources being
- 10:57- on premise.
- 10:58- And what I think healthcare leaders are going
- 11:01- to have to think about is really
- 11:03- the clinical response and time requirements,
- 11:06- the kind of the data privacy and governance,
- 11:08- again, like I mentioned,
- 11:10- the
- 11:10- infrastructure and energy costs that they'll be looking
- 11:13- at, and then the overall
- 11:15- operational resilience during the outage
- 11:18- or disruptions that they may have. Ultimately, I
- 11:21- think the right answer
- 11:22- in my mind is
- 11:24- some combination
- 11:25- of the cloud edge and on premises architectures
- 11:29- rather than just a single approach.
- 11:32- Yeah. That was going to be my next
- 11:33- question. Is there one you recommend over the
- 11:35- other? So it sounds like a hybrid approach
- 11:38- of sorts is what you'd recommend.
- 11:40- Great points, James. And something I wanna go
- 11:42- back to, you had
- 11:44- touched on this idea of
- 11:47- this work, this building the infrastructure to run
- 11:49- AI at scale. It's not just an IT
- 11:51- project. So I'd love to get both of
- 11:54- your perspectives on
- 11:56- how much coordination really matters between teams like
- 11:59- facilities,
- 12:00- IT, and clinical leaders.
- 12:02- Can you say a little bit more about
- 12:03- that coordination and and where you see it
- 12:05- getting difficult?
- 12:07- Greg, you wanna get us started on that
- 12:08- one?
- 12:09- Yeah. And I'll let James,
- 12:11- pile on too.
- 12:12- I think coordination
- 12:14- in partnering across many different avenues that we've
- 12:17- historically not had to to do is is
- 12:20- gonna be critical.
- 12:21- And again, just for perspective,
- 12:23- you know, to to build on what James
- 12:25- said earlier,
- 12:26- you know, as we're in the early innings
- 12:28- of understanding how to fully leverage
- 12:32- the capabilities of AI, I think healthcare,
- 12:35- is gonna be
- 12:36- an enormous opportunity
- 12:38- for many different aspects across
- 12:40- healthcare from radiology
- 12:42- to digital pathology,
- 12:44- patient monitoring, security video, predictive operations.
- 12:49- And in order to really
- 12:50- take advantage of, you know, the more advanced
- 12:53- AI, the inference,
- 12:55- AI
- 12:56- is likely gonna require, you know, the low
- 12:59- latency,
- 13:00- on prem,
- 13:02- small edge data center.
- 13:04- And it's it's, again, worth understanding
- 13:07- the energy aspects of that because,
- 13:09- you know, we're we're hearing about these massive
- 13:11- data centers from a from a training standpoint.
- 13:15- But the edge data centers are are fairly
- 13:17- significant in size as well. So,
- 13:19- you know, if an average 500 bed hospital
- 13:22- is around eight to 10 megawatts
- 13:25- and you're looking at fully adopting and deploying
- 13:28- AI,
- 13:29- across your your hospital. You're probably looking at
- 13:32- a one to two
- 13:34- megawatt on prem data center because of low
- 13:36- latency requirements.
- 13:38- And so you're looking at 10 to 25%
- 13:41- increase in energy just for AI alone, not
- 13:44- to mention the other aspects that are increasing
- 13:47- the load requirements at a hospital for, you
- 13:50- know, EVs and and fleet electrification
- 13:54- so that
- 13:55- we know
- 13:56- the energy increases are coming.
- 13:58- And historically, you know, you would you would
- 14:01- have, you know, possibly the luxury to go
- 14:03- back to your utility and request an extra
- 14:05- megawatt, you know, a couple megawatts.
- 14:08- You may not have that luxury in the
- 14:10- timeframe needed because of the pace
- 14:13- at what the industry is moving. So I
- 14:14- think really to James's earlier point,
- 14:17- looking more strategically ahead at the next five
- 14:20- to ten years,
- 14:22- to really understand
- 14:24- what you can do now to kinda derisk
- 14:26- the available energy that that's gonna be needed.
- 14:29- Mhmm.
- 14:30- Yeah. James, anything you would add?
- 14:32- You know, just as as Greg was talking,
- 14:34- I was thinking about this very thing. And
- 14:37- one of the things is is that the
- 14:38- significant load that we're asking to increase at
- 14:41- a at a facility
- 14:43- and just one simple thing, will the transmission
- 14:46- distribution lines be able to handle that?
- 14:49- Well, heavens, you know, that's not something they
- 14:50- can just pull new wire overnight and and
- 14:53- to a facility and make that happen. That
- 14:55- has to be planned ahead of time. So
- 14:57- if you're wanting it quick, you may be
- 14:59- looking at on-site generation
- 15:01- or, an awful lot of money to to
- 15:04- get power in the place that you need
- 15:05- it.
- 15:07- Yeah. And what I'm taking away from you
- 15:09- both is it's really about getting ahead of
- 15:12- identifying
- 15:13- and derisking available energy to Greg's point earlier.
- 15:16- And, James, I know what you're saying here
- 15:17- is along those same lines
- 15:19- of preparing,
- 15:20- essentially.
- 15:22- But I'm curious if you'd add anything, you
- 15:24- know, for that leader who wants to get
- 15:26- ahead of this challenge,
- 15:28- and they wanna derisk
- 15:29- available energy or take some of those proactive
- 15:31- steps, what's a what's a realistic starting point?
- 15:35- Well, when we just step take a step
- 15:37- back and look at historically, you know, facilities
- 15:39- teams have managed power and infrastructure.
- 15:42- And and, of course, the IT folks have
- 15:43- managed, you know, basically applications and data.
- 15:47- And that world's been pretty siloed
- 15:49- up till now. And I think this is
- 15:51- going to force a number of alliances
- 15:54- that have sort of worked well together but
- 15:56- really haven't always kind of had to sit
- 15:58- down at the table and really talk things
- 16:00- through.
- 16:01- And I think, you know, and what I'm
- 16:03- referring to is kind of like the new
- 16:04- construction and operations side of a hospital.
- 16:07- They're going to have to have those more
- 16:09- meaningful conversations
- 16:11- as the AI boundaries blur.
- 16:13- And this is going to then foresee suspicions
- 16:16- to be really made by IT leaders of
- 16:19- what, you know, those significant implications that they're
- 16:22- asking for
- 16:24- and what that means to the facility and
- 16:26- and and vice versa,
- 16:28- and the facility being able to to come
- 16:30- up and and and supply that. And then,
- 16:32- of course, we have the utility in that
- 16:34- mix as well.
- 16:36- So all these decisions can directly impact,
- 16:39- the technology, the deployment, and the scalability we're
- 16:42- looking for.
- 16:43- And then I really believe that the organizations
- 16:46- that are gonna succeed
- 16:48- in in the future, really, in this side
- 16:50- is is the ones that bring, here again,
- 16:53- the facilities, the IT, the cybersecurity,
- 16:56- the clinical leadership,
- 16:57- and finance together early. Like Greg's saying, we
- 17:00- put together that plan with the CFO
- 17:03- to to see what's the investment going to
- 17:05- be
- 17:06- and what do we need to do based
- 17:08- on what we have available to us. To
- 17:10- James's point, I think looking creatively at
- 17:14- on-site power generation,
- 17:16- you know, microgrids
- 17:18- historically have been,
- 17:20- maybe a luxury or a nice to have
- 17:22- and it's quickly, I think, trending to
- 17:24- a critical decision factor on how much on-site
- 17:27- generation is needed to de risk,
- 17:31- the energy needs.
- 17:32- But I'd say there's also a lot of
- 17:34- creative approaches being developed right now in the
- 17:36- market where, you know, you don't necessarily need
- 17:39- to spend a lot of CapEx to get
- 17:41- it. And there's a lot of independent power
- 17:43- producers,
- 17:44- energy as a a service providers,
- 17:46- even utilities are evolving pretty quick to be
- 17:49- able to
- 17:50- do energy as a service for large scale
- 17:53- on-site power generation
- 17:56- that would also protect you from rate increases
- 17:58- as well and potentially unlock new revenue
- 18:01- streams where the grid gets more and more
- 18:03- constrained.
- 18:04- You'll be able to
- 18:06- to monetize that excess capacity and sell back
- 18:09- to the grid
- 18:10- and take advantage of, I would say, increasing
- 18:13- kinda demand response in virtual power plant,
- 18:16- options that, again, I think have have been
- 18:19- explored in the past, but I think we're
- 18:22- gonna, you know, in the next five years
- 18:23- quickly see see that become more and more
- 18:26- of the norm versus,
- 18:27- the exception.
- 18:29- Yeah.
- 18:30- Well, it's been such a great conversation with
- 18:32- the both of you. A lot
- 18:34- of practical advice and considerations for our leaders
- 18:37- while also, you know, some fair warnings about
- 18:39- what's ahead if that preparation isn't taken seriously.
- 18:43- So I wanna thank you again for the
- 18:44- time that you spent with Becker's today.
- 18:47- Before we close, is there anything that we
- 18:49- didn't cover or any final thoughts that you'd
- 18:51- like to leave listeners with?
- 18:53- I I guess from my perspective, I I
- 18:55- know it's it's maybe somewhat of a daunting
- 18:57- discussion,
- 18:59- which I think is warranted. But, you know,
- 19:01- on a positive note, you know, this is
- 19:03- driving a lot of collaboration and creativity in
- 19:05- the market. So I would encourage everyone to,
- 19:08- you know, reach out to your partners and
- 19:10- vendors and challenge us in new ways to
- 19:13- help help you,
- 19:15- solve your problems and kinda co innovate alongside
- 19:17- you.
- 19:18- James, how about you? Yeah. So, you know,
- 19:20- I'd I'd like to add to that too.
- 19:22- I I think that if I were to
- 19:23- look at a a takeaway from this, it's
- 19:26- it's it's really that, you know, AI readiness
- 19:30- and energy readiness are becoming really inseparable.
- 19:33- You can't think about one without the other.
- 19:35- And as Greg said, we're we're just on
- 19:38- the cusp of this. We haven't really begun
- 19:40- to see
- 19:41- the full fruition
- 19:42- what is going to be. We're just at
- 19:44- that where the s curve starts to move
- 19:46- up.
- 19:47- And, you know, health care is always focused
- 19:49- on resiliency
- 19:51- because it's a code compliance and, of course,
- 19:53- patient care. That's why we're doing this is
- 19:55- to to hopefully save lives and make lives
- 19:57- better. But
- 19:59- nothing that works in a hospital without electricity.
- 20:02- And the adoption
- 20:04- of AI and how it accelerates
- 20:07- and the electrical grid facing the new pressures
- 20:10- that it sees from the new data center
- 20:11- growth, the healthcare organizations
- 20:13- having the opportunity to strengthen their both their
- 20:16- digital infrastructure and their power infrastructure,
- 20:19- I think that we need to start planning
- 20:21- now
- 20:22- to be the in the best position to
- 20:23- leverage really more the AI
- 20:26- safely,
- 20:27- reliably, and at scale
- 20:29- while continuing to deliver that exceptional patient care.
- 20:33- James, Greg, I wanna thank you both again
- 20:35- for your time and your insights today. Really
- 20:37- appreciate you doing this. It was a pleasure.
- 20:40- Thank you, Erica.
- 20:41- Thank you very much. Grateful to be here.
- 20:43- Thank you. And we also wanna thank our
- 20:45- podcast sponsor, Schneider Electric.
- 20:48- Listeners, be sure to tune in to more
- 20:49- podcasts from Becker's by visiting our podcast page
- 20:52- at beckershospitalreview.com.