Google has entered into an agreement with energy company Voltus to create a “virtual power plant” within the PJM regional grid, which serves much of the mid-Atlantic region. The arrangement aims to provide Google with up to 1,070 megawatts of electric capacity—equivalent to the output of a large nuclear power plant—by incentivizing reductions in electricity use among homes and businesses during periods of high demand.

Rather than relying on new power generation facilities, this strategy focuses on aggregating small voluntary decreases in consumption. Participating customers may see temporary adjustments such as smart thermostats dialing back air conditioners during peak hours or the deployment of batteries to supply on-site electricity. While each individual reduction is modest, Voltus expects that collectively these measures can reliably free substantial capacity within a few years.

Ellen Zuckerman, Google’s head of energy market development for North and South America, described virtual power plants as a vital near-term solution to address immediate capacity needs. She highlighted that this approach allows the company to advance its clean energy goals while helping communities manage energy demand more efficiently and cost-effectively.

The move comes amid growing concerns over the electricity requirements of the expanding data center industry, particularly as artificial intelligence workloads drive demand for greater computational resources. Some tech firms have pursued unconventional options such as restarting retired nuclear plants or deploying off-grid gas engines to supply power. However, community opposition has increased in many areas, as residents worry that large data centers strain local grids and contribute to rising electricity prices.

While virtual power plant initiatives may not replace the eventual need for additional traditional power infrastructure, they offer a potentially faster and less environmentally impactful way to meet immediate capacity challenges as demand for data center services continues to grow.