MIT Technology Review is reporting that Google has signed an agreement with Voltus to establish a virtual power plant (VPP) within PJM, the largest power grid in the United States, which covers much of the East Coast. The publication said Google will fund the VPP's setup, which will aggregate distributed energy resources like electric vehicles and smart thermostats. Voltus will compensate participating customers for reducing their electricity use or deploying stored energy during periods of high grid demand. The additional capacity generated by this project is intended to help power Google's data centers in the region.
The publication noted this initiative represents one of the most concrete instances of a technology company utilizing a VPP to address the energy needs of its data centers. It highlighted a Duke University study suggesting that data centers could avoid the need for new power plants if they agreed to decrease energy demand for approximately 40 hours annually.
MIT Technology Review also discussed challenges, including incentives for data centers to be flexible, especially with the rise of AI, and the willingness of individual customers to participate. It mentioned regulatory proposals, such as one in the U.S. that would allow new data centers to come online sooner if they commit to demand reduction, and a Texas law requiring large users to curtail demand during emergencies. Voltus's "Bring your own capacity" program, which Google is now utilizing, allows data centers to finance grid flexibility. The VPP is expected to aggregate up to 100 megawatts annually and be operational by 2027.
The publication cited Michael Terrell, Google’s global head of advanced energy, who stated the company is exploring all options for expanding grid capacity, acknowledging limits to how flexible a data center can be. It also referenced a California study on managed electric-vehicle charging, which showed low participation rates even with financial incentives, and a Gallup poll indicating that about 70% of Americans oppose AI data centers in their area.
Full Article: How virtual power plants could provide energy for data centers