Grid software unicorn Emerald AI has formed a coalition with Google and Nvidia. The group will use the startup technology to secure space on the electrical grid for more data centers.
The AI Energy Management Alliance wants to make demand response an integral part of data center development. Demand response involves data centers temporarily reducing their electricity use during peak times.
Pausing noncritical tasks and shifting some compute loads could allow an additional 100 gigawatts of data centers to connect to the grid. The founding trio is joined by Anthropic and utilities including AES, Constellation, National Grid, and NRG Energy.
Demand response is an old concept used by utilities for decades. The grid is designed with peak loads in mind, while demand is well below maximum supportable levels for much of the year.
Traditionally, demand response covered large electricity users like factories. These users agreed to reduce usage during high demand by pausing production or switching to backup generators in exchange for payment.
Data centers can also take advantage of these programs by turning on backup generators. Emerald AI proposes an alternative to dirty diesel generators.
The startup software coordinates requests from utilities with data centers. Data centers can then pause noncritical tasks or shift loads to other facilities with grid headroom.
Other entities are working on similar technology. Google develops its own tools, and Enel X lets data centers tap uninterruptible power supplies to round off demand peaks.
A Goldman Sachs study published last year noted that limiting maximum grid usage to 90% for a few hours at a time could free up 76 gigawatts of capacity. Emerald AI connects utilities directly to data centers for rapid responses resembling batteries.
The startup recently raised $150 million in a Series A round led by Energize Capital and DCVC. This funding provides the capital needed to scale the technology.
Ayse Coskun, chief scientist at Emerald AI, stated that the technology promises to blunt the industry need for new generating sources. However, she noted it will not eliminate the need entirely.
The coalition also aims to help tech companies and utilities find new sites for data centers. The next known step is the continued rollout of the technology on a wider scale by the alliance members.
