Tech giants, utilities team up to manage data center boom

By Francisco "A.J." Camacho | 10/30/2024 06:38 AM EDT

Their aim is to harness the electricity used by data centers to stabilize the power grid.

High-voltage electric transmission lines pass through a wind farm.

High-voltage electric transmission lines pass through a wind farm in Spearville, Kansas. Charlie Riedel/AP

Cloud computing giants and utilities have launched a collaboration to ensure energy-hungry data centers are a stabilizing force on the power grid, a response to concern that the projected boom could threaten the system if it’s not better managed.

The “DCFlex” initiative led by the Electric Power Research Institute (EPRI) will explore ways data centers can adjust their power requirements and use on-site energy resources in response to conditions on the grid. The idea is to help alleviate peak demand and bring more support to electricity supplies during shortages.

The rapid development of artificial intelligence is leading to more energy planning. But DCFlex is among the first efforts to bring together some of the biggest names in the technology industry and electric utilities for the purpose of developing best practices.

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“We saw an opportunity for EPRI, because of our organization and how we work as a collaborative convener of key stakeholders, to help advance this much more quickly than what was going to happen in the free market,” said David Porter, EPRI’s vice president of electrification and sustainable energy strategy.

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