Google Partners with US Utilities to Manage AI Data Centre Power Demand

Google Partners with US Utilities to Manage AI Data Centre Power Demand
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Google has signed agreements with two US electric utilities to reduce power consumption at its AI data centres during periods of high grid demand, Reuters reported. The deals with Indiana Michigan Power and Tennessee Power Authority enable Google to scale back machine learning workloads when requested, helping alleviate pressure on electricity supplies.

This marks Google’s first participation in demand-response programs that temporarily curb AI-related energy use, traditionally employed by heavy industries like manufacturing and cryptocurrency mining. The surge in AI data centre electricity needs has strained some US grids, raising concerns about potential blackouts and increased costs for consumers and businesses.

Google stated that such programs facilitate faster interconnection of large energy users, reduce the need for new power infrastructure, and help grid operators manage supply more efficiently. While demand-response agreements currently impact a small portion of overall grid demand, they may grow in importance amid tightening electricity supplies across the United States.