As AI reshapes data centers, PowerHouse Decommissioning is there to skin the old ones
The company recently relocated its headquarters from Minnesota to Niota, Tennessee.
PowerHouse Decommissioning Systems has spent 30 years decommissioning data centers and industrial facilities across the country.
We recently caught up with Patrick Ricke, operations manager and son of founder Jerry Ricke, to learn more about the company’s move and mission.
Why Niota?
First off, PowerHouse wanted to be closer to the data center and manufacturing infrastructure booming across the Southeast.
“There aren’t any other companies in the area that do this and are based here,” Ricke said. “There are larger companies all around the country that will come to the area for this work, but we’re physically here, and people like that local aspect.”
The second reason goes back about eight years, to a data center decommission for Regal Cinemas in Knoxville’s Turkey Creek.
“My dad fell in love with the area and the people,” Ricke said. “Everyone’s so friendly, and it’s an easy way of life. He decided he wanted to retire down here when the time came.”
About a year and a half ago, the property search got serious. PowerHouse found a warehouse in Niota that allowed his dad to be in Knoxville and the business to be just a short drive away.
Now, their 10,000-square-foot facility in Niota is home to their four-person team and loads of equipment.
The AI surge is only part of it
It’s no secret that data centers are a hot topic right now. But Ricke is quick to point out that data centers existed long before AI started trending.
“If you use Microsoft, or have Excel spreadsheets or Word documents, you have tons of data being stored either on your computer or off-site,” he said. “Large companies can’t just have physical hard drives lying around.”
Nevertheless, Ricke also acknowledges that AI is still very much driving the industry’s future, though.
“AI server racks are different from traditional server racks,” Ricke said. “Older facilities want to take advantage of the AI surge, so they’re transitioning to new racks. That means we have to decommission the old ones, which have been great for business.”
The company has decommissioning projects lined up in San Diego, Phoenix and Pennsylvania over the next year, with hopes of picking up local work closer to home as well.
What happens to the equipment?
Once Powerhouse’s team clears a facility, the equipment that gets taken out (generators, circuit breakers, and more) doesn’t go to waste. It’s bought and sold nationwide, and often finds a second life.
Healthcare is one example.
“A hospital can’t lose power. That would be horrific. They need a lot of backup power, and we supply them with generators as a secondary customer,” explained Ricke.
Agriculture is another.
“Farmers use these generators to charge their tractors’ batteries or machines,” he said.
The licensing and skill set behind decommissioning work translates to plenty of other projects, too.
“Take Greenheck coming to Knoxville, for example,” Ricke said. “We do a lot of work with air conditioning and large chillers that they produce. We can handle basically any electrical or critical power project. We like to be flexible in how we help our clients, wherever we’re able to.”
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