Google Cuts AI Data Centre Load Under New Utility Agreements

Google has signed demand-response agreements with Indiana Michigan Power and the Tennessee Valley Authority allowing the utilities to ask the company to curtail power use at its U.S. data centres running artificial-intelligence workloads when electricity demand on the grid spikes, according to a 4 August statement cited by Reuters. Under the pacts, Google will pause or reschedule non-essential machine-learning tasks during heat waves, severe weather or other periods of tight supply. The company said the arrangements—its first formal programmes designed specifically for AI—should ease pressure on transmission networks, reduce the need for new generation and help grid operators avoid service interruptions. U.S. utilities have been flooded with requests for megawatt-scale connections as Big Tech races to deploy generative-AI systems. Analysts expect data-centre electricity consumption to roughly double by 2030, raising concerns over higher consumer bills and potential blackouts. Google argues that flexible load management can speed up data-centre interconnections while keeping overall system costs in check. Financial terms were not disclosed, but industrial participants in similar schemes typically receive payments or discounted tariffs for curtailment. The search giant is also investing in wind, solar, geothermal and small modular nuclear projects and maintains a goal of operating on 24/7 carbon-free energy by 2030.