Google has entered into agreements with two U.S. electric utilities, Indiana Michigan Power and Tennessee Power Authority, to reduce power consumption at its AI data centers during periods of peak electricity demand. This move marks Google's first participation in a demand-response program aimed at alleviating strain on the U.S. electrical grid amid rising energy use driven by AI workloads. Under the agreements, Google will pause non-essential AI workloads during times of surging demand or adverse weather conditions that limit power supply, helping to prevent potential grid overloads. The company’s AI data centers have been identified as significant contributors to increased power demand, prompting this coordinated effort with utilities. This development occurs alongside broader challenges in global energy grids, including China's rapid renewable energy expansion leading to increased curtailment due to grid limitations, Europe's reliance on retrofitting coal plants to meet growing AI data center power needs, and India's struggles with renewable energy generation and grid infrastructure.