​Grid operators want data centers to help manage shortages by reducing their demand for electricity. This is load curtailment, a temporary reduction in the power a customer draws from the grid. A data center can curtail by using less power or switching to on-site supply while its servers keep running.

The difficulty is meeting that request from the grid while satisfying customer commitments. Moving or delaying eligible compute, reducing chip power, and using batteries or generators all require preparation, equipment, and suitable customer agreements.

Google has signed utility contracts, and joint trials are testing how computing can respond to grid conditions. Although this signals progress, it is unclear how often grid flexibility can be delivered while fulfilling customer contracts.

Key takeaways

• PJM and ERCOT are seeking dependable demand reductions during shortages. Curtailment can reduce grid consumption while computing continues, if the site has the equipment and operating arrangements to do so.
• Customer deadlines determine which computing can be delayed and which work needs to take place immediately.
• Backup power and spare computing capacity allow a site to reduce grid demand while customers stay online.
• Utility contracts, battery response, and computing trials show progress on flexibility. However, they do not establish that every campus can accept the same curtailment obligations.

For questions on this research, contact tim.woodruff@modoenergy.com, or ask Ko, Modo Energy's AI analyst. Or, read the previous article in the series about the revenue economics of data centers.

PJM and ERCOT want curtailment to help manage shortages