Google signed its first demand-response deals to cut AI data center power use during grid surges, partnering with two local utility firms.
Global technology giant Google has just signed agreements with utility firms Indiana Michigan Power (I&M) and the Tennessee Power Authority (TVA) to reduce power use at its artificial intelligence (AI) data centers when there is surging demand on the grid.
In a company statement on Aug. 4, Google said it has arranged to curb electricity usage to free up grid space when requested by the utilities, as AI use can outpace power supplies.
The scramble to meet power demands—especially during the summer months—has led to public concerns about higher electricity bills for consumers and businesses, as well as potential blackouts.
“That’s why we’ve been working to bring flexible demand capabilities into our data center fleet, which enables us to shift or reduce power demand during certain hours or times of the year,” Google said.
“I&M is excited to partner with Google to enable demand-response capabilities at their new data center in Fort Wayne, Indiana,” Steve Baker, president and CEO of I&M, said in the Google blog.
“As we add new large loads to our system, it is critical that we partner with our customers to effectively manage the generation and transmission resources necessary to serve them.”
These agreements represent the first formal pact by Google in demand-response programs with local utility companies to temporarily cut back on the power required for the machinery used for its AI production.
“It allows large electricity loads like data centers to be interconnected more quickly, helps reduce the need to build new transmission and power plants, and helps grid operators more effectively and efficiently manage power grids,” Google added in its statement.
Similar demand-response programs have been in use by other industries requiring excessive amounts of electric power, such as heavy manufacturing. In exchange, the businesses often receive reduced power bills or payments.
Utilities across the nation have been deluged with requests for additional power usage to operate AI data centers. In many cases, demand is often greater than the power supplies available in some regions.
While programs involving the regulation of power for AI data centers, as well as demand-response agreements, are generally a new concept, they could become more common as America’s power supply becomes more strained.
“We believe this is a promising tool for managing large new energy loads and facilitating investment and growth,” Google said.
By Mary Prenon
