Emerald AI, Google, Nvidia and Anthropic Form Alliance to Free Up Grid Space for Data Centers

Grid software company Emerald AI has teamed up with Google and Nvidia on a coalition that will use its technology to find room on the electric grid for more data centers.

The AI Energy Management Alliance (AEMA) wants demand response - where data centers briefly cut their electricity use - to become a standard part of data center development. Pausing noncritical tasks and shifting some computing loads could let an extra 100 gigawatts of data centers connect to the grid, the group says.

Anthropic and utilities including AES, Constellation, National Grid and NRG Energy round out the founding members.

Demand response is nothing new; utilities have relied on it for decades, paying large users like factories to cut usage during peaks by pausing production or firing up backup generators. Data centers can join those programs too, usually by running their own backup generators.

Emerald AI pitches an alternative to diesel generators. Its software links utility requests directly to data centers, which can pause noncritical work or move loads to sites where the grid has spare capacity. Google has built its own tools, and Enel X lets data centers draw on uninterruptible power supplies to shave peaks, while a Goldman Sachs study last year found capping grid usage at 90% for a few hours could free 76 gigawatts.

Emerald AI's edge is that direct utility-to-data-center connection, which should let facilities respond fast, much like batteries. The startup recently raised $150 million in a Series A led by Energize Capital and DCVC.

The coalition also aims to help tech companies and utilities find new data center sites, a task that has proven difficult. Even so, chief scientist Ayse Coskun told TechCrunch the technology can reduce the industry's need for new generating sources - but not remove it.

Source: TechCrunch