Google Partners with Voltus to Build Virtual Power Plant for Data Center Energy Needs
Google has signed a deal with virtual power plant startup Voltus to aggregate up to 100 megawatts of distributed energy resources on the PJM grid covering much of the US East Coast, paying households and businesses to reduce electricity consumption during peak demand. The agreement, described as the first of its kind, is part of Google's broader effort to meet surging energy demand from AI data centers without building new infrastructure. It raises questions about whether financial incentives will be sufficient to drive meaningful public participation in demand-flexibility programs.
Google has become the first named customer of Voltus's 'Bring Your Own Capacity' program, under which it will finance a virtual power plant (VPP) on the PJM grid — the largest power grid in the US, covering much of the East Coast. Voltus will aggregate distributed energy resources such as electric vehicles and smart thermostats, paying participating households and businesses to dial back their electricity use during periods of grid stress, with the freed-up capacity directed toward Google's data centers in the region. The plant is expected to be operational by 2027 and could aggregate up to 100 megawatts annually. The deal is part of a broader push by Google, which also announced new water consumption standards and a plan to sell $85 billion in shares to fund its data center expansion. Experts and recent studies raise concerns about public participation: a California study found that even at $40 per month, fewer than 5% of EV owners enrolled in managed charging programs, and roughly 70% of Americans oppose AI data centers in their communities according to Gallup polling. Google and Voltus have not disclosed how much they plan to pay VPP participants, a key variable for the program's success. Regulatory approaches, including proposals to fast-track data center permitting in exchange for demand-flexibility commitments, are also being explored as complementary solutions.
What's missing
Neither source specifies the compensation rate Voltus and Google plan to offer VPP participants, which is a critical factor in determining whether the program will achieve its 100-megawatt target.
How coverage differed
MIT Technology Review framed the story with notable skepticism, emphasizing unresolved questions about public participation incentives and citing polling showing broad opposition to AI data centers. Semafor presented the deal more straightforwardly as a milestone, also noting Google's $85 billion share sale and new water commitments — details MIT Technology Review did not include.
What different sources said
- MIT Technology ReviewCenter
How virtual power plants could provide energy for data centers
- SemaforCenter
Google strikes first-of-its-kind deal with a virtual power plant
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