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Google strikes agreements with 2 grid operators to restructure data center demand

UNITED STATES, AUG 4 – Google will reduce AI data center power use during peak demand under new agreements with Indiana Michigan Power and Tennessee Valley Authority to ease grid strain and improve reliability.

  • On August 5, 2025, Google confirmed it has entered demand-response agreements with Indiana Michigan Power and the Tennessee Valley Authority to reduce AI data center power consumption during surging grid demand.
  • With AI workloads surging, utilities across the U.S. face increasing grid pressure as demand exceeds available power in some regions.
  • Under the agreements, Google will shift non-critical machine learning workloads and reduce power consumption at its AI data centers during peak demand, Google said.
  • With 85% of I&M’s 2023 energy delivery already emission-free, Google’s participation boosts I&M's peak demand management and sustainability goals.
  • This partnership establishes a template for collaboration between utilities and technology companies on managing electricity consumption, accelerating demand-response tech, and evolving data center operations.
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The Register broke the news in on Monday, August 4, 2025.
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