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Nvidia and Google Launch Alliance to Turn AI Data Centers Into Grid Assets
Nvidia, Google and a startup called Emerald AI want AI data centers to start acting like grid citizens instead of nonstop power hogs, and on September 16 they launched an alliance betting that idea can unlock 100 gigawatts of capacity the US grid already has. The AI Energy Management Alliance, or AEMA, launched with three founding members and eighteen additional partners, including Anthropic, chipmaker Analog Devices, and utilities National Grid, Constellation, AES, RWE and NRG. The pitch is straightforward: let data centers throttle back their power draw when the grid is under stress, and in exchange, utilities fast-track the connections new AI facilities need. According to Nvidia's own blog post announcing the coalition, the US grid runs at roughly 50% average utilization, meaning huge amounts of existing capacity sit unused most of the time simply because it has to be reserved for rare peaks. Google put a number behind its commitment. The company pledged 1 gigawatt of demand it can reduce on request through agreements with utilities across the country, according to Axios's reporting on the launch. That's roughly the output of a large nuclear reactor, and it means Google is telling grid operators it will voluntarily cut that much...