Nvidia, Emerald AI team with energy companies on "flexible" data centers
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Illustration: Axios Visuals. Photo of Varun Sivaram courtesy of Erik Krafft, ONS
Nvidia and startup Emerald AI said Monday they're working with major U.S. energy companies to develop a new class of data centers designed to flex their power use and connect to the grid faster.
Why it matters: The effort reflects a growing push to turn AI data centers from massive power consumers into more dynamic grid participants, as electricity demand from AI surges.
Driving the news: The companies — including AES, Constellation, NextEra Energy, Invenergy and Vistra — plan to collaborate on energy and infrastructure approaches to support so-called "flexible AI factories."
- The design pairs Nvidia's new reference architecture with Emerald AI software that can adjust computing workloads in response to grid conditions.
How it works: These facilities could ramp power use up or down during periods of grid stress, similar to demand response programs, rather than running at constant full capacity.
- We wrote about the concept in depth last fall.
Inside the room: Emerald AI CEO Varun Sivaram previewed the approach at a dinner hosted by Axios on Sunday on the sidelines of the massive CERAWeek energy conference getting underway Monday in Houston.
- "The next generation of data centers, even if it has on-site generation, should be able to give back to the grid, give back to communities, help keep rates affordable and help to achieve grid reliability," Sivaram said.
Yes, but: The announcement is light on firm project commitments or timelines, suggesting the effort is — for now — more of a framework for collaboration than a buildout plan.
The intrigue: Other participants at Sunday's Axios dinner said building on-site power generation — often referred to as "behind the meter," meaning it primarily (and sometimes exclusively) serves the facility — is increasingly seen as critical as data center power demand soars.
- "Behind the meter is not a choice — it's a necessity," said Will Jordan, EQT chief legal and policy officer.
What we're watching: How this debate unfolds this week at CERAWeek by S&P Global, considered the world's most influential energy conference.
