Google to Limit AI Data Center Power Use During Peak Demand to Ease US Grid Strain

Google has signed agreements with Indiana Michigan Power and the Tennessee Valley Authority to reduce AI data center power usage during peak electricity demand. As AI-driven data centers rapidly increase energy consumption, U.S. utilities face supply shortages, risking blackouts and rising bills. Google's participation in demand-response programs marks its first formal step to temporarily scale back AI workloads when utilities request, helping relieve grid strain. Traditionally used by industries like manufacturing and crypto mining, these programs help avoid new infrastructure builds and improve grid efficiency. With growing AI power needs, such agreements may become more widespread across the U.S. energy landscape.