EPRI Launches Initiative to Enhance Data Center Flexibility and Grid Reliability

EPRI announced the launch of DCFlex, a new initiative that will explore how data centers can support the electric grid, enable better asset utilization and support the clean energy transition. The initiative's founding members include Compass Datacenters, Constellation Energy, Duke Energy, the Electric Reliability Council of Texas (ERCOT), Google, Meta, New York Power Authority, NRG Energy, NVIDIA, Pacific Gas and Electric Company (PG&E), PJM Interconnection, Portland General Electric, QTS Data Centers, Southern Company and Vistra Corp.

After years of flat load growth on the U.S. grid, electricity demand is rising across the economy as numerous factors – including industrial onshoring, electrification of transport, digitization, and the adoption of AI – converge. According to a recent EPRI white paper, electricity usage by hyperscalers more than doubled between 2017 and 2021. This increase is expected to continue, with data centers projected to consume 5% to 9% of U.S. electricity generation annually by 2030, up from 4% today.

Led by EPRI, DCFlex will coordinate real-world demonstrations of flexibility in a variety of existing and planned data centers and electricity markets, creating reference architectures and providing shared learnings to enable broader adoption of flexible operations that benefit all electricity consumers.

Specifically, DCFlex will establish five to ten flexibility hubs, demonstrating innovative data center and power supplier strategies that enable operational and deployment flexibility, streamline grid integration, and transition backup power solutions to grid assets. Demonstration deployment will begin in the first half of 2025, and testing could run through 2027.

For the electric sector, AI advances are key to managing the grid more efficiently by effectively integrating distributed resources, demand response, variable renewables, and energy storage with utility-scale grid resources. This can accelerate the energy transition while keeping electricity reliable and affordable.

"Data centers play a critical role in today's interconnected global information-sharing environment and economy, but along with increased manufacturing and movement towards electrification, they are placing additional power needs on the electric grid," said EPRI President and CEO Arshad Mansoor, in the press release. "Flexible data center design and operation is a key strategy for accelerating AI development and realizing its benefits while minimizing costs, lowering carbon emissions, and enhancing system reliability."

"AI can help solve the world's greatest problems, and to enable this, NVIDIA is committed to our leadership in providing the highest performance per watt for AI computing infrastructure," added Marc Spieler, head of global business development and strategy for the energy industry at NVIDIA. "The DCFlex initiative is another example of how industry leaders can leverage data centers as a flexible resource on the grid to help address peak loads."

"Meta is committed to efficient data center operations matched by 100 percent clean and renewable energy. But we know this work cannot be done alone — we continue to work alongside our peers and utility providers to advance new opportunities for digital infrastructure. Efforts like EPRI's DCFlex initiative are critical to these cross-industry efforts," said Bryce Dalley, director of Commercial Energy Supply at Meta in the EPRI press release.

"Our energy system is built to handle the extreme demands of our hottest summer days and coldest winter nights but is often underutilized. The real challenge isn't a lack of energy for data centers but managing the peak demand hours. The ability of data centers to flex during these critical periods is crucial," said Constellation President and CEO Joe Dominguez, in the release.