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Data centers' 'flexible' power usage could save the grid billions. Can they scale?

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Data centers' 'flexible' power usage could save the grid billions. Can they scale?

Business News Tech AI Data centers' 'flexible' power usage could save the grid billions. Can they scale?

Data centers' 'flexible' power usage could save the grid billions. Can they scale?

In light of rising electricity demands from data centers, technology firms and utility providers are exploring innovative strategies to increase operational flexibility regarding power consumption. This demand response approach not only aims to alleviate the strain on electrical grids during peak times but is also predicted to yield notable cost benefits.

Technology companies and utilities are increasingly exploring ways to make power-hungry data centers more flexible in when and how they consume electricity, helping ease the strain on US power grids as AI-driven demand surges. The strategy, called " demand response ", involves data centers temporarily reducing or shifting electricity use during periods of peak demand or grid stress, and is gaining traction as a way to reduce the need for costly grid upgrades and new power generation. It's a tool that states around the US, federal agencies and market operators are increasingly exploring, said Lauren Shwisberg, a principal at energy think tank RMI.

Why does data center flexibility matter? US data center electricity use could rise from about 177 to 192 terawatt-hours in 2024 to between 383 and 793 TWh by 2030, according to the Electric Power Research Institute. Meanwhile, data centers surveyed by the group reported peak power reduction potential of 10% to 30%, depending on facility type, with some hyperscalers going even higher, according to Arin Kaye, EPRI technical leader.


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