We reached a new milestone this week in our efforts to make data center energy use more flexible: We’ve now integrated a total of 1 gigawatt (GW) of demand response capacity into our long-term energy contracts with multiple utilities across the U.S.

Demand response enables our data centers to be valuable assets for the power grid. Our ability to shift or reduce our energy demand can help utility companies balance supply and demand and plan for future capacity needs. These agreements create a smart solution to make the electricity systems that serve our data centers more affordable and reliable.

How it works

Google’s demand response capability allows us to limit or shift a portion of machine learning (ML) workloads running in our data centers. This reduces the overall data center power demand, helping to stabilize the grid during certain hours or times of the year.

Since announcing initial agreements with Indiana Michigan Power (I&M) and Tennessee Valley Authority (TVA) last year, we’ve signed contracts with Entergy Arkansas, Minnesota Power and DTE Energy that incorporate demand response as a key resource for new data centers to connect more rapidly to local grids. Demand response can be deployed quickly to bridge the gap between short-term load growth and the longer timelines required to build new clean generation and storage solutions.

This demand-side flexibility, along with other new resources we’re bringing to the system — such as solar, geothermal and long-duration energy storage projects — enables valuable capacity for grids while helping our utility partners support reliability.

How it benefits the energy system

Data center demand response plays an important role in translating energy growth into a smarter system that can create widespread cost-saving benefits.

By allowing utilities to cover peak demand periods with existing grid resources, demand response can help optimize the build-out of new transmission and power plants. Research shows that even small amounts of flexibility in large electrical loads can save costs for entire power systems, easing rate pressure for all customers. This is because flexible demand reduces the need for new infrastructure designed only to meet short periods of peak use of the system — a primary driver of costs for electricity customers.

A key component of long-term capacity planning

There are limits to how flexible a given data center can be, and this capability will only be available at certain locations. We’re excited to keep learning about its potential and working to advance data center design, grid planning processes, and market development to help realize it.

This includes collaborating with states, regulators and our utility partners to modernize power system planning. While grid planners have historically assumed most new loads are inflexible, initiatives like EPRI DCFlex, in which Google is a founding member, are developing frameworks to fully value demand response as a capacity resource for the grid.

We’re excited to continue innovating on these demand response capabilities, as part of our long-term approach to responsible, affordable energy growth.