September 11, 2025 | BOMA International, Ella Krygiel
Ensuring the healthcare sector has the right energy infrastructure is crucial, not only for day-to-day operations, but as the risks for climate events such as storms and wildfires increase. Hospitals, like many facilities, rely on the utility electrical grid as their primary source of power. However, the challenge extends far beyond individual facility needs.
“The biggest challenge is that health care is attached to the same electrical grid that is being stressed across the country with the immense power needs of data centers, large developments, industry, etc.,” explains Eric Hoffman, Vice President and National Healthcare Sector Lead at Project Management Advisors, Inc. “Large health care organizations that just take the elements of quality, reliability, and availability at face value, from their utility supplier, have the potential to put their organizations at risk.”
The healthcare sector is responsible for around 5% of the world’s greenhouse gases (Science Direct). As a Power Flex article notes, all this need for quick power makes it difficult for healthcare facilities to reach sustainability goals, such as complying with regulations and meeting the demands of eco-conscious employees and patients.
However, clean energy solutions are taking shape as a practical and cost-effective way for healthcare providers to not only meet their green strategies but also cut rising operational costs. Vizient shares a couple of examples of this financial impact:
- Boston Medical Center: BMC reduced their utility bills by more than $7 million, through the ability to generate their own electricity and heat from its own natural gas, two-megawatt combined heat and power plant (CHP).
- Downers Grove: Illinois-based Advocate Health Care saved $23 million from 2008-2015 by reducing its energy consumption by 23% per square foot.
These aren’t isolated success stories. Research proves that hospitals that pursued energy upgrades, cogeneration and efficiency measures saved over $154 million in 2023 and 2024, based on data from nearly 1,000 facilities recognized in the Practice Greenhealth Environmental Excellence Awards.
Beyond money, however, clean energy ensures longevity and resilience amid climate events. Traditionally, this meant fossil fuel-powered generators. However, according to Trellis, this is no longer a regulatory requirement, opening doors to cleaner alternatives.
“Health care systems are now developing digital twins that show real time data for electrical generation, transmission, distribution and end use, allowing them to visualize the entire path and manage their operations in a manner that provides additional sight line, confidence and potential cost savings while reducing risk,” Hoffman notes.
Alternative energy sources like solar panels, fuel cells and battery storage are increasingly being deployed not just for emergencies, but for ongoing operations. Valley Children’s Healthcare, located in California, installed a microgrid that allows the hospital to operate even during wildfires and power shutoffs.The system combines solar, fuel cell and battery storage, planning to reduce greenhouse gas emissions by 50% (Better Buildings Solution Center).
In a Healthcare Facilities Today, Victor Bonachea, expert product owner, ASCO Power Technologies / Schneider Electric, discusses how battery energy storage can provide more than just a use for during an emergency. He explains how it can both optimize energy costs and relieve stress on the power grid. He predicts that down the line, as battery energy density continues to improve, there may be a future where batteries can completely replace diesel generators in large-scale applications.
Alternative energy provides a lot of benefits – most especially for those in low- and middle-income countries that are estimated to be served by healthcare facilities without reliable electricity access or with no electricity access at all (World Health Organization). Due to electricity not being a constant for healthcare facilities, in specified areas in: sub-Saharan African regions, Latin America and the Caribbean region, in addition to a percentage of South Asia, this brings the need for sustainable energy solutions a global consideration as well.
Modernization in healthcare facilities is no longer optional, it’s essential. With AI becoming increasingly crucial for delivering effective healthcare solutions, proper infrastructure to support AI systems directly impacts both patient outcomes and staff’s overall well-being and experience.
The World Economic Forum reports that 4.5 billion people currently lack access to essential healthcare services, with a projected health worker shortage of 11 million expected by 2030. AI has the potential to help bridge this gap and revolutionize global healthcare, potentially achieving the United Nations’ Sustainable Development Goal of universal health coverage by 2030.
With so much potential for the future of healthcare, CRE professionals should plan their energy infrastructure strategies so we can keep healthcare facilities not only staying afloat but thriving.
Looking ahead the next 3-5 years, Hoffman shares how he expects energy infrastructure requirements to reshape medical real estate development and investment strategies:
“Today’s technology is evolving to allow healthcare organizations greater opportunities to make their organizations more resilient, manage their electrical loads/costs and be more active participants in the process, with generators, microgrids, and batteries playing a role in a grid that is becoming more multi-directional. An additional piece that will continue to evolve is that some systems will be installing their own data centers to accommodate the massive role that technology and AI will play in their business and delivery of care.”
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