Google, Nvidia and Anthropic join Emerald AI to secure grid space for new data centers
A new coalition called AEMA aims to use demand-response technology to free up space on the electrical grid for as much as 100 additional gigawatts of data center capacity. The effort is led by startup Emerald AI alongside Google, Nvidia and Anthropic.
Grid software company Emerald AI has teamed up with Google and Nvidia to form a new coalition aimed at helping data centers find room on the electrical grid. The group, called the AI Energy Management Alliance (AEMA), wants to make demand response — temporarily reducing data centers' electricity use during peak periods — a standard part of how data centers are built and operated.
According to AEMA, pausing noncritical computing tasks and shifting some workloads elsewhere could allow an additional 100 gigawatts of data center capacity to connect to the grid. Anthropic has joined the three founding companies, along with utilities including AES, Constellation, National Grid and NRG Energy.
An old idea applied to a new problem
Demand response is not a new concept — utilities have used it for decades, since grids are built to handle peak loads that are rarely reached for most of the year. Traditionally, large industrial users like factories participated by pausing production or switching to backup generators during high-demand periods in exchange for payment.
Data centers now also take part in such programs, typically by relying on backup generators. Emerald AI offers an alternative to running diesel generators: its software coordinates requests from utilities with data centers, which can pause lower-priority tasks or shift compute loads to other facilities where the grid has spare capacity.
A Goldman Sachs study published last year found that capping maximum grid usage at 90% for a few hours at a time could free up 76 gigawatts of capacity. Emerald AI's advantage lies in connecting utilities directly to data centers, allowing for a fast response similar to how batteries operate. The startup recently raised $150 million in a Series A round led by Energize Capital and DCVC.
Ayse Coskun, Emerald AI's chief scientist, said the technology should reduce the industry's need for new power generation sources, though it won't eliminate that need entirely.
