Google Signs Deal for Demand Response Capability for Data Centers
We reached a milestone this week in our efforts to make data center energy use even more flexible: We have now integrated a total of 1 GW of demand response capacity into our long-term energy contracts and many resources across the US Demand response make our data centers critical assets of the power grid. Our ability to change or reduce our energy demand can help utility companies balance supply and demand and plan for future energy needs. These agreements create a smart solution to make the electrical systems that serve our data centers more affordable and reliable.
COMMENTARY
Google’s demand response capabilities allow us to limit or eliminate part of the machine learning (ML) load running in our data centers. This reduces the overall data center energy demand, helping to stabilize the grid at certain hours or times of the year. (Editor’s note: (Watch the Google video here.) Since announcing the first agreements with Indiana Michigan Power (I&M) and Tennessee Valley Authority (TVA) last year, we have signed contracts with Entergy Arkansas, Minnesota Power and DTE Energy that include demand response as a key resource for new data centers to connect more quickly to local grids. Demand response can be deployed quickly to bridge the gap between short-term load growth and the longer periods needed to develop new clean generation and storage solutions. This demand-side flexibility, along with other new resources we are bringing to the system – such as solar, geothermal and long-term energy storage projects – enables significant grid capacity while helping utility partners maintain reliability.
Data center demand response plays a key role in translating capacity growth into an intelligent system that can create widespread cost-saving benefits. By allowing utilities to cover periods of high demand with existing grid resources, demand response can help improve the construction of new transmission and power equipment. Studies show that even a small amount of flexibility in large electrical loads can save costs for the entire electrical system, reducing the pressure on the average for all customers. This is because flexible demand reduces the need for new infrastructure designed only to meet short periods of high system usage – the main cost driver for electricity customers.
There are limits to how flexible a given data center can be, and this capability will only be available in certain locations. We are excited to continue learning about its potential and working to improve data center architecture, grid planning processes, and market development to help realize it. This includes working with states, regulators and utility partners to modernize energy system planning. While grid planners have historically assumed that many new loads are inflexible, initiatives such as EPRI DCFlex, of which Google is a founding member, are creating frameworks to fully recognize demand response as a source of grid power. We are excited to continue to innovate in this demand response energy, as part of our long-term approach to responsible, affordable energy growth. –Michael Terrell is Google’s Head of Advanced Technologies. This post was originally published on the Google blog.