Google, I&M and TVA to Expand Use of Demand Response in Data Centers

Google has signed agreements with utilities Indiana Michigan Power (I&M) and Tennessee Valley Authority (TVA) to enable demand response capabilities at its data centers doing machine learning (ML) workloads. The agreements are part of a broader strategy by Google to bring flexible demand capabilities into its data center fleet, enabling the firm to shift or reduce power demand during certain times of the year.

“Grid operators typically only utilize about 50 percent of available generating capacity. This is by design: they must plan and build enough power plants to meet the highest demand at any given time, but peak demand only occurs during a small fraction of the hours in a year,” said Michael Terrell, head of Advanced Energy at Google. “Research shows that even a small amount of flexibility for large energy loads, like ML, during peak times can reduce the need to build new power plants while accommodating new energy loads much faster.”

“I&M is excited to partner with Google to enable demand response capabilities at their new data center in Fort Wayne, IN. As we add new large loads to our system, it is critical that we partner with our customers to effectively manage the generation and transmission resources necessary to serve them,” said Steve Baker, president and CEO of I&M. “Google’s ability to leverage load flexibility as part of the strategy to serve their load will be a highly valuable tool to meet their future energy needs.”