As AI’s insatiable appetite for energy pushes the U.S. power grid to its limits, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is partnering with regional grid operators to scale back data center loads during peak demand.
Google Launches Demand Response For Machine Learning Workloads
On Monday, Google announced agreements with Indiana Michigan Power and the Tennessee Valley Authority to implement “demand response” — a strategy that shifts certain workloads away from times of grid strain, reported The Hill.
While Google first experimented with this approach in 2023, this marks the first time the company is targeting energy-intensive machine learning workloads.
"As AI growth accelerates, we recognize the need to expand our demand response toolkit and develop capabilities specifically for machine learning workloads," said Amanda Peterson Corio, Google's global head of data center energy.
"We want to be thoughtful about how we can continue to be a good grid citizen and see this as a vital tool for enabling responsible data center growth."
AI Is Reshaping The Energy Market — And Raising Red Flags
Energy use has become a defining issue in the AI arms race. According to a July U.S. Department of Energy report, blackout risks could increase 100-fold by 2030 due to AI and manufacturing demand, the report said.
In response, President Donald Trump's AI Action Plan calls for accelerating the construction of both energy infrastructure and data centers.
Goldman Sachs estimates global data center electricity demand will jump 165% by 2030, potentially making the sector one of the world's top 10 energy consumers.
IPPs And Utility Stocks Surge On AI Power Demand
With AI rapidly transforming the electricity landscape, independent power producers (IPPs) such as Constellation Energy (NASDAQ:CEG), Vistra (NYSE:VST) and NRG Energy (NYSE:NRG) are experiencing unprecedented growth.
A June note from LPL Financial analyst Thomas Shipp highlighted how hyperscaler capex cycles — like those from Google Cloud, Amazon.com, Inc. (NASDAQ:AMZN) web services and Microsoft Corporation's (NASDAQ:MSFT) Azure — are driving M&A activity in the energy sector.
Price Action: Alphabet Inc.'s Class A shares edged down 0.23% to $194.60 in after-hours trading, while Class C shares also declined 0.23% to $195.30, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings indicate that GOOGL maintains strong upward momentum across short, medium and long-term periods. Additional performance metrics are available here.
Read Next:
Photo Courtesy: JHVEPhoto on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
