Google, Nvidia and Emerald AI form data center alliance — TechCrunch
Google, Nvidia and power grid software developer Emerald AI have formed the AI Energy Management Alliance (AEMA). Anthropic has also joined the coalition. The alliance plans to use Emerald AI technologies to free up capacity in power grids for connecting new data centers. TechCrunch reports.
AEMA aims to make demand management a component of data center development. This involves temporarily reducing electricity consumption: data centers can pause non-critical tasks or shift part of their computing workloads to other data centers where the grid has spare capacity.
According to the alliance's estimate, this approach could make it possible to connect additional data centers with a total capacity of up to 100 gigawatts to the grid. Energy companies AES, Constellation, National Grid and NRG Energy have also joined the coalition.
Managing electricity demand
Demand management has been used by energy companies for decades. Power grids are designed with peak loads in mind, while for a significant part of the year demand is lower than the grid's maximum capacity. Large consumers, including businesses, may agree to reduce electricity use during peaks — for example, by halting production or switching to backup generators. In return, electricity suppliers pay for this service.
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An alternative to backup generators
Data centers can also participate in such programs, usually by starting backup generators. Emerald AI offers another option: its software directly connects energy companies with data centers and coordinates their requests. This could allow data centers to quickly reduce their load or redistribute it among sites.
Emerald AI is not the only developer of such solutions: Google is creating its own tools, while Enel X offers data centers the use of uninterruptible power supplies to smooth consumption peaks. According to a Goldman Sachs study published last year, limiting data centers' maximum consumption to 90% for several hours could free up 76 gigawatts of capacity.
Emerald AI recently raised $150 million in a Series A round led by Energize Capital and DCVC. At the same time, Emerald AI Chief Scientist Ayşe Coskun noted that the technology can reduce the industry's need for new generating capacity, but will not eliminate it completely.
