Google is expanding a programme that pays homes and businesses to help free up electricity for other users as demand from artificial intelligence (AI) data centres rises. The company is working with energy technology firm Voltus to develop a virtual power plant with up to 1,070 megawatts (MW) of capacity across the US Mid-Atlantic electricity grid.

The agreement covers the PJM grid region, which serves around 67 million people across 13 states and Washington, DC. It builds on a 100 MW programme announced in June. Google said the initial programme attracted more customer participation than expected, prompting the expansion.

The programme does not involve Google buying electricity directly from every participating household. Instead, Voltus will coordinate energy resources across homes and businesses, including smart thermostats, batteries and industrial equipment, to reduce electricity consumption or feed stored power into the grid when demand is high.

For example, a household might temporarily reduce air-conditioning use or delay charging an electric vehicle. Another household could supply electricity from a battery. These actions can free up capacity on the grid, helping it meet demand from data centres and other users.

Participating customers will receive financial incentives, including electricity bill savings and cash payments. Google has not disclosed the financial terms of the expanded agreement.

The deal comes as technology companies face growing challenges in securing reliable electricity for AI infrastructure. Building new power stations and transmission lines can take years, increasing the importance of making better use of existing grid capacity.

Virtual power plants are networks of energy resources coordinated through software to function as a single electricity resource.

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