Edge Compute Innovations in the Utility Industry

In this interview, we’re thrilled to sit down with David Fry, Senior Product Manager on Broadcom’s Edge Compute team. As we explore innovations in the utility industry, focusing on edge computing technology, David shares insights into the ongoing transformation of the energy sector, driven by renewable energy and electrification, highlighting the need for modern IT solutions. He explains how VMware’s Edge Compute Stack helps utility companies by bringing compute power closer to the operational edge, tackling challenges like data management and the evolving grid infrastructure.

David, can you share your perspective on the current state of the electric utility industry and where it is headed?

Absolutely. Utilities worldwide are undergoing a massive transformation driven by several key factors. One of the most significant is the energy transition – moving from traditional fossil fuels and large-scale centralized power generation to distributed, renewable sources like solar and wind. Additionally, electrification is accelerating across industries and homes, increasing demand on the grid.

A major challenge utilities face is adapting to a decentralized, bidirectional grid structure. Historically, electricity flowed in one direction—from centralized plants to consumers. Now, with distributed energy resources like rooftop solar and wind farms, the grid must operate more like a mesh network, balancing supply and demand dynamically.

The scale of these changes is substantial. The International Energy Agency (IEA) reports that global energy investment will hit record highs this year, with a significant portion going into clean energy infrastructure. Meanwhile, electric vehicle adoption is projected to increase tenfold in the U.S. by 2030, requiring a robust charging network. On top of that, the rise of AI and machine learning is driving up energy consumption—training large models like ChatGPT-4 requires 50 times more power than its predecessor.

Utilities are struggling to keep pace, and existing grid technologies are not equipped to handle this transition. That’s where modern IT solutions, including VMware’s Edge Compute technologies, come in.

VMware is known primarily for virtualization and data center solutions. How does VMware support the utility industry in this transition?

VMware has played a key role in managing enterprise IT workloads for decades, and now we’re bringing that expertise to the edge. With data generation shifting outside traditional data centres—Gartner predicts that 50% of enterprise data will soon be created at the edge—organisations need new approaches to process and analyse information where it’s generated.

Given the volume and latency concerns, traditional methods, like sending all data to the cloud for processing, won’t scale. Instead, VMware enables companies to process data at the edge with solutions like VMware Edge Compute Stack (ECS). ECS is optimized for running workloads at the edge, helping utilities manage their infrastructure more efficiently and securely.

Can you elaborate on specific use cases where edge computing makes a difference for utility companies?

Sure. One compelling example is our work with wind farms. We’ve deployed Edge Compute Stack within the nacelles of wind turbines to process real-time data from sensors monitoring vibration, temperature, and operational performance. These turbines are often in remote or offshore locations, making it difficult to send technicians for maintenance. By using predictive maintenance analytics at the edge, operators can detect issues before they lead to costly failures, improving uptime and efficiency.

Another key use case is within substations. VMware has been working with several utilities across the UK, Europe, the Middle East, India, and the US to virtualize protection relays and other critical infrastructure. For example, at VMware Explore in Las Vegas, the Salt River Project showcased how they’re using Edge Compute Stack to enhance security, efficiency, and manageability within substations.

We’re also seeing edge computing play a role in electric vehicle (EV) charging infrastructure. As the number of EVs grows, charging stations need to scale efficiently. Companies are leveraging edge computing to optimize charging operations and even provide localized services, like digital advertisements for nearby businesses while drivers wait for their vehicles to charge.

What are utilities’ main challenges in adopting edge computing, and how does VMware help overcome them?

Utilities have unique requirements when it comes to IT infrastructure. Many sites have strict security constraints, requiring air-gapped solutions. Others have unreliable or zero network connectivity, making remote management a challenge. Edge computing solutions must be resilient, secure, and easy to manage at scale.

VMware Edge Compute Stack is designed with these challenges in mind. It includes an edge-optimized hypervisor and VMware Edge Cloud Orchestrator, which enables centralized management of distributed edge environments. This allows utilities to deploy, monitor, and update their edge applications efficiently, even in remote or highly secure environments.

Another challenge is hardware constraints. Unlike data centers, where resources can be easily scaled, edge environments often have limited computing power. VMware’s approach consolidates multiple workloads onto a single, optimized platform, reducing hardware footprint while ensuring reliability.

It’s clear that VMware is playing a crucial role in enabling the next generation of utility infrastructure. Looking ahead, what do you see as the biggest opportunities for innovation in this space?

The biggest opportunity lies in leveraging AI and real-time analytics at the edge. Utilities are generating vast amounts of data, and being able to process and act on that data locally will drive significant efficiencies.

We’re also seeing advancements in federated learning, where AI models can be trained at the edge without needing to transmit large datasets to central locations. This can enhance cybersecurity, privacy, and operational performance.

Additionally, as the grid evolves, we’ll see greater integration of distributed energy resources, requiring advanced orchestration and automation. VMware’s solutions will continue to evolve to support these needs, helping utilities build a more resilient and intelligent grid.

Thanks, David, for sharing your insights on the future of the utility industry and how VMware by Broadcom is helping drive innovation. It’s been a pleasure having you!