Data centers' load flexibility can ease electric grid strain

Uplight and See Change Institute published research exploring data center interest in load flexibility and virtual power plant participation.

• Main announcement/action: Uplight partnered with See Change Institute and interviewed 12 energy decision-makers across data center types and regions to assess familiarity with demand response (DR) and virtual power plant (VPP) programs; the report highlights that electricity demand from traditional, AI data centers, and chip foundries is projected to rise from 130 TWh in 2023 to 307 TWh by 2030 and that hyperscalers are expected to account for ~70% of data center growth by 2030.
• Background and details: The research documents location-specific strain (e.g., data centers consuming ~20% of a utility’s sales in Loudoun County, VA and ~60% of a utility’s energy in Santa Clara, CA), finds varying willingness to participate in load-flex programs (limited mainly to non-peak times or relying on backups), and presents five utility engagement strategies (build relationships early, tailor approaches, lead with education/benefits, stay flexible amid regulatory changes, design solutions for 24/7 operational realities).