Google curbs energy use as AI data center power supply becomes strained

Google GOOGL.O announced Thursday that it has signed deals with five U.S. power companies from Arkansas to Minnesota to reduce power use during peak demand periods, in its latest effort to secure power for its fast-growing data centers even as new supply is slow to grow.

Instant access to large amounts of electricity has become one of the biggest hurdles in the race for Big Tech companies to scale up artificial intelligence technologies developed in energy-intensive server warehouses known as data centers.

With electricity in short supply in some parts of the country and building new infrastructure often taking years, technology companies have taken unusual steps in recent days, including building new power plants and restarting idled nuclear power plants.

Under the “demand response” agreement, Google will reduce power consumption at some data centers when demand on the power grid is unusually high.

“This is a very important tool for meeting future demands,” said Michael Terrell, Google’s head of advanced energy.

Demand for electricity typically spikes on very hot or cold days when homes and businesses ramp up cooling and heating, increasing the risk of rolling blackouts. Power companies and grid operators maintain additional reserves and have long-standing contracts with large energy users, including manufacturers and cryptocurrency miners, to reduce peak consumption.

Google currently has agreements in place with Entergy Arkansas, Minnesota Power, and DTE Energy, in addition to initial deals announced last year with Indiana Michigan Power and Tennessee Valley Authority.

Under the agreement, Google will be able to reduce data center power demand by up to 1 gigawatt during peak usage periods when the risk of outages is highest.

One gigawatt can power approximately 750,000 homes.

Report by Laila Carney in New York. Editing: Mark Porter

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