The rise of AI is transforming our energy landscape. With energy demand from data centers projected to nearly triple from 2023 to 2030, utilities face the challenge of meeting these growing needs while reaching their decarbonization goals. But what if data centers could become grid assets rather than simply sources of grid strain?
Uplight recently partnered with See Change Institute to explore this possibility, interviewing energy decision-makers from diverse data center environments. Our research revealed several insights into how these critical facilities approach energy management and their potential for load flexibility.
We discovered that data center managers are interested in demand response (DR) and virtual power plant (VPP) programs, though their engagement depends heavily on program design and demonstrated benefits. While they may be interested in long-term sustainability initiatives, their business decisions require demonstrable short-term benefits with clear ROI. Such benefits need to include price stability, energy cost savings, or enhanced reliability to gain traction. One data center operator explained his perspective on the need for immediate value:
In addition, strong utility relationships emerged as crucial for successful participation in load flexibility initiatives. Our findings showed that energy engagement evolves throughout a data center’s lifecycle, with more intensive collaboration during planning and construction phases. One interviewee shared that he is on a first-name basis with utility teams:
Among the twelve participants we interviewed, seven reported already participating in some form of load flexibility program, though engagement levels varied. Rather than comprehensive participation, we found most data centers employed selective approaches, often relying on backup systems rather than reducing or shifting energy usage. However, some participants discovered unexpected capacity for load shifting without operational disruption. One participant shared details on his participation, and what he has learned:
Our findings revealed a complex landscape where data centers can evolve from being grid stressors to becoming valuable grid flexibility partners. Successfully engaging data centers in load flexibility requires an understanding of their unique operational realities and priorities, from their need for 24/7 reliability to their concerns about price stability.
Read our full ebook to dive deeper into research takeaways and discover five key recommendations for engaging data centers in grid management and decarbonization efforts.
