Google has announced new efforts to manage rising energy demands from artificial intelligence by partnering with utility providers to stabilise power grids. The tech giant has signed agreements with Indiana Michigan Power and the Tennessee Valley Authority to introduce “demand response” capabilities in its data centres.
Demand response is a method that allows large energy users, like data centres, to reduce or shift their power consumption during peak hours or when the grid is under pressure. Google explained that this helps ease strain on the power system, avoids the need for new power plants and transmission infrastructure, and enables faster connection of new data centres to the grid.
This move supports Google’s larger goal of operating on 24/7 carbon-free energy. The company highlighted that this solution can be deployed quickly, making it a valuable bridge between the growing short-term energy needs of AI and longer-term clean energy solutions. This is also the first time Google is applying demand response directly to machine learning workloads.
The announcement builds on a previous pilot project with the Omaha Public Power District, where Google successfully reduced energy use from ML workloads during three separate grid events. Before this, the company focused on shifting less urgent computing tasks, like YouTube video processing, to off-peak hours. That strategy was implemented with partners such as Centrica Energy and Elia in Belgium, as well as Taiwan Power Company.
With the rapid growth of AI, Google believes there is a growing need to expand its demand response approach to manage new, large-scale energy requirements, especially in areas facing power generation and transmission challenges.
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