Emerald AI alliance targets 100 gigawatts for data centers

Demand response has been a utility staple for decades, used to manage peak loads by paying large users like factories to cut consumption. With AI compute loads growing, the same approach is being adapted to data centers, which can pause noncritical tasks or shift loads to other sites where the grid has headroom. Emerald AI's software connects utilities directly to data centers, letting them respond quickly, much like batteries. The startup has raised $150 million in a Series A led by Energize Capital and DCVC to scale up.

The new AI Energy Management Alliance — founded by Emerald AI with Google, Nvidia, Anthropic, and utilities including AES, Constellation, National Grid, and NRG Energy — wants demand response to become an integral part of data center development, estimating it could allow an additional 100 gigawatts of data centers to connect to the grid. The coalition also plans to help tech companies and utilities find new sites for data centers, which the body describes as a difficult task for both parties.

The approach is not unique: Google has been developing its own tools, and Enel X lets data centers tap uninterruptible power supplies to shave peaks. A Goldman Sachs study published last year found that limiting max grid usage to 90% for a few hours at a time could free up 76 gigawatts of capacity. Yet even sophisticated demand response won't solve all grid problems today — Emerald AI's chief scientist Ayse Coskun told TechCrunch the technology promises to blunt the need for new generating sources, but won't eliminate it entirely. Whether the coalition's 100-gigawatt ambition materializes may hinge on how quickly data centers can adopt these programs and whether utilities and developers can agree on new sites.