EPRI has launched a new initiative, DCFlex, to explore the role of data centers in supporting the electric grid, enabling better asset utilization, and backing the clean energy transition.
The founding members of the initiative are Compass Datacenters, Constellation Energy, Duke Energy, the Electric Reliability Council of Texas (ERCOT), Google, Meta, New York Power Authority, NRG Energy, NVIDIA, Pacific Gas and Electric Company (PG&E), PJM Interconnection, Portland General Electric, QTS Data Centers, Southern Company, and Vistra Corp.
According to a recent EPRI white paper, electricity usage by hyperscalers more than doubled between 2017 and 2021. The increase is expected to continue, with data centers projected to consume 5 to 9% of U.S. electricity generation annually by 2030, up from the existing 4%.
DCFlex will coordinate real-world demonstrations of flexibility in existing and planned data centers and electricity markets, creating reference architectures and providing shared learnings to enable broader adoption of flexible operations to benefit all electricity consumers.
DCFlex will establish five to ten flexibility hubs, demonstrating innovative data center and power supplier strategies to enable operational and deployment flexibility, streamline grid integration, and transition backup power solutions to grid assets. Demonstration deployment will begin in the first half of 2025, and testing is slated through 2027.
The initiative is a result of discussions with the U.S. Department of Energy (DOE) and many in the data center, technology, utility, and research communities that informed the development of recommendations to DOE from the Secretary’s Energy Advisory Board (SEAB) Powering AI and Data Center Infrastructure Recommendations July 2024.pdf (energy.gov). The recommendations highlighted collaboration among all key stakeholders in powering the data centers to support the growing economy and strengthen advances in AI technology.
AI improvements in the electric sector will help manage the grid more efficiently by integrating distributed resources, demand response, variable renewables, and energy storage with utility-scale grid resources. This will fasten the energy transition with reliable and affordable electricity.
“Data centers play a critical role in today’s interconnected global information-sharing environment and economy, but along with increased manufacturing and movement towards electrification, they are placing additional power needs on the electric grid,” said EPRI President and CEO Arshad Mansoor. “Flexible data center design and operation is a key strategy for accelerating AI development and realizing its benefits while minimizing costs, lowering carbon emissions, and enhancing system reliability.”
