Google partners with Voltus to fund a 1 gigawatt virtual power plant on the PJM grid, aiming to cut peak electricity use for AI and support data centers.
Google funds large virtual power plant
Google has signed an agreement to fund a 1 gigawatt virtual power plant managed by Voltus on the PJM grid. This initiative aims to reduce electricity use during peak times, especially those linked to artificial intelligence, freeing up energy for Google’s data centers. Expansion of energy contracts
The new agreement adds 1,070 megawatts to a previous 100 megawatt contract signed in June 2026. The PJM grid serves 67 million customers across 13 states and the District of Columbia, and the companies describe this capacity as one of the largest distributed portfolios ever deployed by a hyperscaler. Recent nuclear energy deal
This follows an 890 megawatt nuclear energy supply agreement signed with Constellation Energy in early October 2026. Google’s 2025 environmental report shows its data centers consumed 30.8 million MWh of electricity in 2024, more than double their 2020 consumption, highlighting the growing need for computing power. How virtual power plants work
A virtual power plant does not have turbines. Voltus aggregates unused capacity from local businesses and households, and Google funds this effort. When the grid is under pressure, Voltus asks these sites to reduce their electricity use through batteries, smart thermostats, and other flexible equipment. Participants receive savings on their bills and direct payments. Economic and grid benefits
The companies cited a report by the Brattle Group, which predicts American consumers could save over 100 billion dollars in the next decade by optimizing grid usage. Google’s program, "Bring Your Own Capacity," allows the company to purchase grid capacity, supporting regional reliability while generating revenue for local communities. Recent energy sector deals
This is the second major energy agreement Google has made this month. On October 6, 2026, it signed a 20-year contract with Constellation for 890 MW of nuclear energy. Earlier in September, Google and Nvidia launched an alliance to help data centers adapt their energy use. Voltus also raised 225 million dollars in a Series D funding round on October 8. Impact on local participants
Dana Guernsey, CEO of Voltus, said the expansion of the partnership with Google turns data center growth into direct economic benefits for local businesses and households. The 1 gigawatt virtual power plant will aggregate flexible capacities such as smart thermostats and batteries, reducing energy use during peak times and providing financial benefits to participants. Challenges in climate goals
This announcement comes as Google faces challenges in meeting its climate goals. The company had committed to achieving "net zero" emissions by 2030, but its 2024 environmental report showed emissions increased by 13% in 2023 and 48% compared to 2019. Google attributes this rise to the growing demand for artificial intelligence and the energy it requires.
