Stay Ahead, Stay ONMINE

Want to get a data center online quickly? Give it some flex.

At the end of a tense and scoreless first half of a soccer match between the English men’s team and rival Germany, millions of Brits let out a collective sigh and did what they so often do in moments of stress: They made tea. That wave of electric kettles clicking on, however, caused a different kind of stress: a huge and sudden increase in demand for electricity. But National Grid, which operates the local transmission network, was ready. Just as those kettles started heating up, an AI program sent instructions to a data center in London to slow down some of the facility’s power-hungry chips. This reduction helped make sure there was enough supply to match demand, staving off potential blackouts or damage to electrical hardware. For data centers, which normally guzzle power without consideration for anyone or anything else’s needs, it was a radical departure. It was also a simulation. In December 2025, engineers sought to test a new breed of data center built to be flexible about its electricity needs, so they re-created the energy demand facing the UK’s grid during a match from the 2020 Euro tournament. They wanted to see how their software, called Conductor, would have responded had it been online at the time. Conductor is the signature product of Emerald AI, a firm based in Washington, DC, that’s part of a wave of companies trying to figure out whether data centers can work within the confines of the existing electric grid. This year, Emerald is set to deploy Conductor in a new facility in the part of Virginia known as Data Center Alley, this time connected to the live grid. When overall demand spikes, Conductor will turn down the power used by the data center, while making sure its servers still carry out their timeliest and most important jobs. Emerald’s partners on the project—which include Nvidia and the giant data-center operator Digital Realty—bill it as one of the world’s first “power-flexible AI factories.” Demonstrating that data centers can participate in this kind of give-and-take could ease what many tech leaders identify as the bottleneck in getting facilities online: It takes far longer to get approval for, construct, and connect new power plants than to build data centers. PJM, the grid operator in Virginia and the largest one in the US, for instance, needs eight years to bring new generation online, according to RMI, an energy research and advocacy group. “We need to solve the energy equation,” says Josh Parker, head of sustainability at Nvidia. “AI factory flexibility is the bridge between the incredible demand for AI and the immediate limitations of our energy grid.” Speed, though, is only one of the issues. Once facilities do plug in, neighbors often criticize them for drawing too much electricity and contributing to rising prices. They say the data centers generate more noise than they do long-term jobs, contribute to pollution, and threaten to put people out of work. Organizers stalled over $150 billion worth of projects in 2025, according to Data Center Watch, and policymakers alert to the public mood are starting to impose limitations on development. More than a dozen states are considering bans, and local moratoriums are in effect in places like Minneapolis and DeKalb County in Georgia. At the federal level, the GRID Act, a bipartisan bill in the US Senate, proposes to sever new data centers from public grids entirely. Some operators are already moving that way by trying to develop their own power generation. Rather than rushing to build new power plants, companies could find part of the solution to the crunch right under our noses—or, more precisely, in the transmission lines under our feet and above our heads. The existing system operates near its full capacity during only a small number of high-demand hours throughout the year. This means, some grid experts argue, that if data centers can limit the power they draw during those stretches, they won’t need to wait for big infrastructure upgrades or build their own off-grid generation.  Indeed, a growing number of studies have shown there could be plenty of power available for data centers that can flex. A widely discussed 2025 report from researchers at Duke University found that the US grid could offer an additional 76 gigawatts—about 5% of its entire capacity, and about enough to accommodate projected data-center growth in the US through 2030—to facilities that are willing to reduce their usage just 0.25% of the time. That’s about 22 hours a year. And when researchers from Princeton University and two grid-modernization companies looked at locations for new data centers in the PJM region, their report, which was funded by Google, found that a 500-megawatt facility capable of flexing for less than 1% of the year could reach full operation three to five years faster than one that’s inflexible.  Flexible power connections could also help data centers address some of their PR problems. By decreasing their draw at times of grid stress, for instance, they could avoid diverting power from where it’s most needed, thus boosting stability. By using existing capacity, they might be able to reduce the need for new fossil-fuel power plants and spread fixed costs over more electricity users, pushing prices down.  The AI power pinch is attracting resources and research into strategies for grid flexibility overall, which could help negotiate a tricky period: Taken together with electric vehicles, air-conditioning, and other sectors, data centers are helping drive what analysts predict will be a 25% increase in US electricity demand by 2030 compared with 2023 levels. Ideally, flexibility gives grid operators more control over the flow of electrons, making them leaders of a harmonious ensemble rather than hostages to inflexible electricity requirements. That will help them manage demand spikes across the entire system and deal more effectively with the intermittent nature of renewables like wind and solar. “Demand flexibility is incredibly useful for power grids,” says Johanna Mathieu, a grid expert at the University of Michigan. “It helps reduce electricity costs and improve grid reliability.” But while advocates see plenty of benefits, the concept brings complexity. For data centers, compromising on energy needs can be a hard sell. Flexibility requires utilities and grid operators, which tend to be operationally conservative, to change long-held practices. And some skeptics also say that flexibility distracts from the very real need to build more grid infrastructure faster, and could even pose risks to our electricity supply.  Still, some technologists, grid operators, and utilities are hoping to show that flexibility works—not only in white papers or simulations but in real life.  The poster children for data-center growth default toward inflexibility. Hyperscalers like Microsoft and Oracle have proposed enormous new centers, many of which would rely on off-grid, natural-­gas-burning power plants. When xAI wanted to speed up the buildout of the Colossus site outside Memphis, Tennessee, it rolled up with gas turbines on flatbed trucks. The facility, now in operation, is facing blowback from regulators and residents about the spike it’s causing in emissions and other pollution. In any case, there aren’t enough gas turbines worldwide to meet the demand from data-center operators.  One big obstacle for anyone demanding a lot of power is that our grids are mostly rigid. They’re designed to supply enough power to meet total demand when it’s highest, even if that’s for only a relatively small number of hours a year. That conservative approach is a simple route to reliability, but it means that the grid has quite a bit of headroom. “The grid is already overbuilt by a lot. If you were an airline running at 30% utilization, you would not buy more planes,” says Amit Narayan, the cofounder and CEO of GridCare, a company developing flexibility technologies, referring to a 2025 Stanford study of transmission lines in western North America. “If you are running a grid at 30% utilization, there’s no scientific reason you can’t go to 60.”  “If you were an airline running at 30% utilization, you would not buy more planes. If you are running a grid at 30% utilization, there’s no scientific reason you can’t go to 60.” To be fair, the idea of flexibility isn’t entirely foreign to grid operators. For decades, they’ve practiced a technique called demand response: When it looks as if demand will get too close to supply, as it might during a heat wave when many people turn on the AC at the same time, they call large commercial or industrial facilities and ask them to shut down parts of their operations. This method can help avoid the need to fire up so-called peaker plants, which run on fossil fuels, but it’s slow, imprecise, and hard to scale. In the 2000s, as the adoption of technologies like electric cars and solar panels presented new challenges, more internet-­connected grids also provided new means of flexibility. Virtual power plants, or VPPs, offered a smarter, faster, more granular alternative. Electricity customers ranging from factories to homeowners with smart thermostats, solar panels, or big batteries would allow the utility to adjust their draw to help meet demand—often getting paid for their (frequently unnoticed) trouble.  After the generative AI boom began with the release of ChatGPT in 2022, some companies began to see flexibility as a way to get data centers set up more easily, efficiently, and affordably. If they bring AI money into existing grids and reduce or defer the need for expensive upgrades, data centers could actually help spread out fixed costs so as to lower rates for other users. A study from Duke University published this past February, for instance, found that flexibility could reduce rates by 0.5% to 2.8%.  PETRA PÉTERFFY The trick is figuring out how data centers, notorious power hogs, can keep operating when their flexible connections are throttled. Flexibility specialists envision three possible ways. The simplest is for the new data center to install on-site backup power storage or generation to tap when the grid is maxed out—at their own expense, of course. A facility could also fill the gap by drawing on a VPP. The utility would turn down the electricity going to users who signed up for the VPP, and the data center would pay them for their flexibility. This method wouldn’t require any major infrastructure, but it would require the utility to have a big VPP program and to coordinate the exchange at a time when the grid was under stress. While VPPs exist to some extent in nearly 40 states, the rules governing them vary widely, and they are empowered to do more in some areas than in others.  Finally, a data center could simply use less power at peak times. The conventional wisdom is that they won’t go for such limits, particularly when every number-­crunching server can feel like a goose potentially laying little golden eggs. But some experts are betting that the value of getting up and running quickly is enough to change their minds. “There is a clear and growing trend,” says Ayse Coskun, chief scientist at Emerald AI. “Operators are increasingly willing to trade some level of flexibility for faster grid interconnection.”  GridCare, a startup based in Silicon Valley, was one of the first companies to use flexibility to get data centers online quickly. Instead of looking at grids only in worst-case scenarios when electricity demand is highest, the company analyzes the system under all conditions, explains CEO Narayan, who studied smart grids at Stanford. It feeds every part of the grid—including power plants, lines, substations, and homes—into a generative AI model that creates a “digital twin” for different grid configurations. It then picks out results that could unlock capacity while maintaining reliability, and it feeds those into another model trained on the physics of electrical components like resistors and capacitors to make sure they’re realistic. GridCare found its first customer in the Silicon Forest, an area in the Pacific Northwest named for the trees that dominate the landscape and the IT industry that has more recently sprouted up there. The local grid needed more capacity to support more data centers. “Data centers wanted ‘speed to power,’” says Isaac Barrow, a manager of data-center relations at Portland General Electric, or PGE, the local power generator and distributor, “but transmission buildout is a long process that’s very costly.” In 2024, Aligned Data Centers came to PGE wanting to expand its operation in Hillsboro, Oregon, and PGE followed a recommendation from GridCare. Aligned will install a 31-megawatt battery, set to be in service in May 2027, and decrease its draw by up to that amount when the grid becomes congested. Bundled with other flexibility measures, that battery has allowed PGE to increase the capacity it can offer Aligned and other nearby operators by 80 megawatts without any new power plants. Though the buildout of data centers in Hillsboro has faced plenty of pushback from locals, Barrow points out that it could have the knock-on effect of lowering costs for ratepayers, because it spreads out the tab. Other companies are promoting different flavors of flexibility. Google has been moving processing loads from facilities in areas experiencing demand spikes to those in less stressed spots since 2023. It’s signed agreements with five utilities, including the Tennessee Valley Authority and Indiana Michigan Power, that add as much as a gigawatt of flexibility.  Voltus, a major VPP provider across the US and Canada, markets a “bring your own capacity” program in which a data-­center company can fund a VPP nearby. The grid operator can use the VPP to decrease demand at busy times, and participants get a financial thank-you. “We can spin up new VPPs on the order of months,” says Emily Orvis, Voltus’s vice president of energy markets. In June, the company signed their first such data-center deal: a three-year plan in which Google will bankroll a VPP in the PJM interconnection. Of all the approaches to flexibility, Emerald AI’s may be the most ambitious: asking data centers to dial into the grid’s needs. The company’s Conductor software, which can run on premises or in the cloud, builds on the research of chief scientist Coskun. Her group at Boston University showed in a pair of 2013 papers that a data center could watch the grid and help balance big power fluctuations, such as the intermittent effects of solar and wind power. By 2022, she and her colleagues had tested their methods on a cluster of 36 research servers and shown that the system could respect power limits without breaking the processes it was running.  One of the most important questions for Conductor is deciding which AI processes can be slowed down to save energy without kneecapping performance. A lot of companies label their jobs by priority—a real-time chatbot query, for instance, might outrank something like a web search that’s part of a deep research project. When they don’t, Emerald AI tries to infer priority from the nature of the job. Conductor then analyzes the AI workload to determine how tweaking the power to a given processor will affect the performance and help meet the usage limits set by the grid operator. “The performance curve changes for different kinds of workloads,” says Coskun. “Each AI job is going to have a different location on that curve. Our intelligence is figuring out where you are on that curve.”  PETRA PÉTERFFY Last year, Emerald AI began assessing the technology’s readiness for real-world use in a series of tests, raising the difficulty each time. The trials were carried out in partnership with the Data Center Flexible Load Initiative—a collaboration among tech companies like Google and Nvidia, utilities like Duke Energy, and grid operators like PJM that aims to help establish a repeatable framework for power-­flexible data centers. The first challenge was in Phoenix, a fast-growing computing hub. For the test, Conductor took control of a group of server racks laden with 256 Nvidia A100 GPUs—hardware that can use about as much power as around 170 US homes. When presented with a simulation of a busy grid, Conductor reduced the power to the chips by 25% for three hours, while maintaining acceptable computing performance. Emerald AI and its partners reported the results in a paper in Nature Energy in December 2025. The next trial forced the system to juggle surprise grid fluctuations without advance warning and redirect AI jobs from a data center in Virginia to a less busy one in Chicago. Then, in London, Conductor took the reins of equipment beyond the main GPU processors and faced a more complicated mix of fluctuations, including very short and long bouts of congestion—plus the notorious teakettle effect. The progress so far shows that flexibility can work, at least in some situations, but only a small fraction of operators have pursued it as yet. “We’re just in the beginning innings of the game,” says Jesse Jenkins, one of the authors of the 2025 Princeton study and cofounder of Firma, a startup that works on data-center flexibility. “People are recognizing that this is a potential solution. The motivation is there; there are some bespoke examples. But there’s no uniform solution set that’s the default option, which is where we need to get.” While data centers are going up across the US, no place on Earth comes close to the accumulated computing muscle in Northern Virginia’s Data Center Alley. The region is home to around 500 compute-crunching facilities, which represent 13% of the entire world’s capacity; the next two hot spots, Beijing and Oregon, contain 6% each. There are proposals to build hundreds more facilities in Virginia, but a government study found that the state’s electricity demand will increase 183% (around 26 gigawatts) by 2040 if they all go forward, and supporting even half would be difficult. The power-flexible data center that Emerald AI, Nvidia, Digital Realty, and their partners are building in the suburb of Manassas could demonstrate how data centers can squeeze the power they need out of existing capacity. The facility, slated to come online later this year, is intended to give Conductor the chance to manage power at the largest scale yet and to respond to conditions on a live grid for the first time. In the UK demonstration, Conductor managed a 130-kilowatt AI cluster; in Manassas, it will pull the strings of a 96-megawatt hyperscale AI factory.  Some degree of flex will play a key role as we transition away from fossil fuels and toward a future that has to juggle technologies like solar and wind power, batteries, and electric cars. For PJM, the Manassas facility points to a potential path through the current power crunch. “We think data-center flexibility, in different forms, will be essential for the reliable integration of data-center load over the short to mid term,” says Scott Baker, who manages demand-side markets at PJM.  But not all grid experts are so sanguine. PJM’s market monitor, which oversees the grid operator, says there are no workarounds when it comes to adding capacity. “The notion that large amounts of data-center load can be added without adding new generation is magical thinking,” says Joseph Bowring, an economist and the head of PJM’s market monitor since 1999. One problem, he says, is that there’s no way to guarantee that a data center will actually take less power when demand is high. That is, absent any legal or regulatory push for flexibility or compliance, the utility won’t be able to step in to help prevent, say, a blackout. Utilities can rely on resources like power plants, but they can’t control or rely on data centers. “They do not want to be fully interruptible,” Bowring says of the facilities. Stephen Empedocles, an advisor for technology companies, views flexibility as more of a tool than a silver bullet. “These approaches are excellent for improving grid reliability and getting more out of the infrastructure we already have,” he says, “but they are optimization tools.” They’re not substitutes for the “generation, transmission, and distribution expansion that will still be required,” he continues. Flexibility advocates agree that over the long term, whether or not AI continues to boom, electrification will drive a need for more generation and transmission. Some degree of flex will play a key role in using grid infrastructure better as we transition away from fossil fuels and toward a future that has to juggle technologies like solar and wind power, batteries, and electric cars. A report published by the International Renewable Energy Agency in January 2026 found that grids around the world will need three times as much flexibility in 2030 as they had in 2019—and 10 times as much by 2050—to balance increasing demand with fluctuating supplies of renewable energy.  The challenge of powering AI could provide just the spark we need to do the work of designing and building smarter, more flexible grids, says Coskun. “I think with a crisis like this, there’s no quick solution,” she says. “Sometimes a crisis like this creates an opportunity to do something differently.”  Amos Zeeberg is a freelance science and technology journalist based in Bucharest. He’s developing a book about technology networks, including electric grids.

At the end of a tense and scoreless first half of a soccer match between the English men’s team and rival Germany, millions of Brits let out a collective sigh and did what they so often do in moments of stress: They made tea. That wave of electric kettles clicking on, however, caused a different kind of stress: a huge and sudden increase in demand for electricity. But National Grid, which operates the local transmission network, was ready.

Just as those kettles started heating up, an AI program sent instructions to a data center in London to slow down some of the facility’s power-hungry chips. This reduction helped make sure there was enough supply to match demand, staving off potential blackouts or damage to electrical hardware. For data centers, which normally guzzle power without consideration for anyone or anything else’s needs, it was a radical departure.

It was also a simulation. In December 2025, engineers sought to test a new breed of data center built to be flexible about its electricity needs, so they re-created the energy demand facing the UK’s grid during a match from the 2020 Euro tournament. They wanted to see how their software, called Conductor, would have responded had it been online at the time.

Conductor is the signature product of Emerald AI, a firm based in Washington, DC, that’s part of a wave of companies trying to figure out whether data centers can work within the confines of the existing electric grid.

This year, Emerald is set to deploy Conductor in a new facility in the part of Virginia known as Data Center Alley, this time connected to the live grid. When overall demand spikes, Conductor will turn down the power used by the data center, while making sure its servers still carry out their timeliest and most important jobs. Emerald’s partners on the project—which include Nvidia and the giant data-center operator Digital Realty—bill it as one of the world’s first “power-flexible AI factories.”

Demonstrating that data centers can participate in this kind of give-and-take could ease what many tech leaders identify as the bottleneck in getting facilities online: It takes far longer to get approval for, construct, and connect new power plants than to build data centers. PJM, the grid operator in Virginia and the largest one in the US, for instance, needs eight years to bring new generation online, according to RMI, an energy research and advocacy group. “We need to solve the energy equation,” says Josh Parker, head of sustainability at Nvidia. “AI factory flexibility is the bridge between the incredible demand for AI and the immediate limitations of our energy grid.”

Speed, though, is only one of the issues. Once facilities do plug in, neighbors often criticize them for drawing too much electricity and contributing to rising prices. They say the data centers generate more noise than they do long-term jobs, contribute to pollution, and threaten to put people out of work. Organizers stalled over $150 billion worth of projects in 2025, according to Data Center Watch, and policymakers alert to the public mood are starting to impose limitations on development.

More than a dozen states are considering bans, and local moratoriums are in effect in places like Minneapolis and DeKalb County in Georgia. At the federal level, the GRID Act, a bipartisan bill in the US Senate, proposes to sever new data centers from public grids entirely. Some operators are already moving that way by trying to develop their own power generation.

Rather than rushing to build new power plants, companies could find part of the solution to the crunch right under our noses—or, more precisely, in the transmission lines under our feet and above our heads. The existing system operates near its full capacity during only a small number of high-demand hours throughout the year. This means, some grid experts argue, that if data centers can limit the power they draw during those stretches, they won’t need to wait for big infrastructure upgrades or build their own off-grid generation. 

Indeed, a growing number of studies have shown there could be plenty of power available for data centers that can flex. A widely discussed 2025 report from researchers at Duke University found that the US grid could offer an additional 76 gigawatts—about 5% of its entire capacity, and about enough to accommodate projected data-center growth in the US through 2030—to facilities that are willing to reduce their usage just 0.25% of the time. That’s about 22 hours a year. And when researchers from Princeton University and two grid-modernization companies looked at locations for new data centers in the PJM region, their report, which was funded by Google, found that a 500-megawatt facility capable of flexing for less than 1% of the year could reach full operation three to five years faster than one that’s inflexible. 

Flexible power connections could also help data centers address some of their PR problems. By decreasing their draw at times of grid stress, for instance, they could avoid diverting power from where it’s most needed, thus boosting stability. By using existing capacity, they might be able to reduce the need for new fossil-fuel power plants and spread fixed costs over more electricity users, pushing prices down. 

The AI power pinch is attracting resources and research into strategies for grid flexibility overall, which could help negotiate a tricky period: Taken together with electric vehicles, air-conditioning, and other sectors, data centers are helping drive what analysts predict will be a 25% increase in US electricity demand by 2030 compared with 2023 levels.

Ideally, flexibility gives grid operators more control over the flow of electrons, making them leaders of a harmonious ensemble rather than hostages to inflexible electricity requirements. That will help them manage demand spikes across the entire system and deal more effectively with the intermittent nature of renewables like wind and solar. “Demand flexibility is incredibly useful for power grids,” says Johanna Mathieu, a grid expert at the University of Michigan. “It helps reduce electricity costs and improve grid reliability.”

But while advocates see plenty of benefits, the concept brings complexity. For data centers, compromising on energy needs can be a hard sell. Flexibility requires utilities and grid operators, which tend to be operationally conservative, to change long-held practices. And some skeptics also say that flexibility distracts from the very real need to build more grid infrastructure faster, and could even pose risks to our electricity supply. 

Still, some technologists, grid operators, and utilities are hoping to show that flexibility works—not only in white papers or simulations but in real life. 


The poster children for data-center growth default toward inflexibility. Hyperscalers like Microsoft and Oracle have proposed enormous new centers, many of which would rely on off-grid, natural-­gas-burning power plants. When xAI wanted to speed up the buildout of the Colossus site outside Memphis, Tennessee, it rolled up with gas turbines on flatbed trucks. The facility, now in operation, is facing blowback from regulators and residents about the spike it’s causing in emissions and other pollution. In any case, there aren’t enough gas turbines worldwide to meet the demand from data-center operators. 

One big obstacle for anyone demanding a lot of power is that our grids are mostly rigid. They’re designed to supply enough power to meet total demand when it’s highest, even if that’s for only a relatively small number of hours a year. That conservative approach is a simple route to reliability, but it means that the grid has quite a bit of headroom. “The grid is already overbuilt by a lot. If you were an airline running at 30% utilization, you would not buy more planes,” says Amit Narayan, the cofounder and CEO of GridCare, a company developing flexibility technologies, referring to a 2025 Stanford study of transmission lines in western North America. “If you are running a grid at 30% utilization, there’s no scientific reason you can’t go to 60.” 

“If you were an airline running at 30% utilization, you would not buy more planes. If you are running a grid at 30% utilization, there’s no scientific reason you can’t go to 60.”

To be fair, the idea of flexibility isn’t entirely foreign to grid operators. For decades, they’ve practiced a technique called demand response: When it looks as if demand will get too close to supply, as it might during a heat wave when many people turn on the AC at the same time, they call large commercial or industrial facilities and ask them to shut down parts of their operations. This method can help avoid the need to fire up so-called peaker plants, which run on fossil fuels, but it’s slow, imprecise, and hard to scale.

In the 2000s, as the adoption of technologies like electric cars and solar panels presented new challenges, more internet-­connected grids also provided new means of flexibility. Virtual power plants, or VPPs, offered a smarter, faster, more granular alternative. Electricity customers ranging from factories to homeowners with smart thermostats, solar panels, or big batteries would allow the utility to adjust their draw to help meet demand—often getting paid for their (frequently unnoticed) trouble. 

After the generative AI boom began with the release of ChatGPT in 2022, some companies began to see flexibility as a way to get data centers set up more easily, efficiently, and affordably. If they bring AI money into existing grids and reduce or defer the need for expensive upgrades, data centers could actually help spread out fixed costs so as to lower rates for other users. A study from Duke University published this past February, for instance, found that flexibility could reduce rates by 0.5% to 2.8%

PETRA PÉTERFFY

The trick is figuring out how data centers, notorious power hogs, can keep operating when their flexible connections are throttled. Flexibility specialists envision three possible ways. The simplest is for the new data center to install on-site backup power storage or generation to tap when the grid is maxed out—at their own expense, of course.

A facility could also fill the gap by drawing on a VPP. The utility would turn down the electricity going to users who signed up for the VPP, and the data center would pay them for their flexibility. This method wouldn’t require any major infrastructure, but it would require the utility to have a big VPP program and to coordinate the exchange at a time when the grid was under stress. While VPPs exist to some extent in nearly 40 states, the rules governing them vary widely, and they are empowered to do more in some areas than in others. 

Finally, a data center could simply use less power at peak times. The conventional wisdom is that they won’t go for such limits, particularly when every number-­crunching server can feel like a goose potentially laying little golden eggs. But some experts are betting that the value of getting up and running quickly is enough to change their minds. “There is a clear and growing trend,” says Ayse Coskun, chief scientist at Emerald AI. “Operators are increasingly willing to trade some level of flexibility for faster grid interconnection.” 


GridCare, a startup based in Silicon Valley, was one of the first companies to use flexibility to get data centers online quickly. Instead of looking at grids only in worst-case scenarios when electricity demand is highest, the company analyzes the system under all conditions, explains CEO Narayan, who studied smart grids at Stanford. It feeds every part of the grid—including power plants, lines, substations, and homes—into a generative AI model that creates a “digital twin” for different grid configurations. It then picks out results that could unlock capacity while maintaining reliability, and it feeds those into another model trained on the physics of electrical components like resistors and capacitors to make sure they’re realistic.

GridCare found its first customer in the Silicon Forest, an area in the Pacific Northwest named for the trees that dominate the landscape and the IT industry that has more recently sprouted up there. The local grid needed more capacity to support more data centers. “Data centers wanted ‘speed to power,’” says Isaac Barrow, a manager of data-center relations at Portland General Electric, or PGE, the local power generator and distributor, “but transmission buildout is a long process that’s very costly.”

In 2024, Aligned Data Centers came to PGE wanting to expand its operation in Hillsboro, Oregon, and PGE followed a recommendation from GridCare. Aligned will install a 31-megawatt battery, set to be in service in May 2027, and decrease its draw by up to that amount when the grid becomes congested. Bundled with other flexibility measures, that battery has allowed PGE to increase the capacity it can offer Aligned and other nearby operators by 80 megawatts without any new power plants. Though the buildout of data centers in Hillsboro has faced plenty of pushback from locals, Barrow points out that it could have the knock-on effect of lowering costs for ratepayers, because it spreads out the tab.

Other companies are promoting different flavors of flexibility. Google has been moving processing loads from facilities in areas experiencing demand spikes to those in less stressed spots since 2023. It’s signed agreements with five utilities, including the Tennessee Valley Authority and Indiana Michigan Power, that add as much as a gigawatt of flexibility. 

Voltus, a major VPP provider across the US and Canada, markets a “bring your own capacity” program in which a data-­center company can fund a VPP nearby. The grid operator can use the VPP to decrease demand at busy times, and participants get a financial thank-you. “We can spin up new VPPs on the order of months,” says Emily Orvis, Voltus’s vice president of energy markets. In June, the company signed their first such data-center deal: a three-year plan in which Google will bankroll a VPP in the PJM interconnection.

Of all the approaches to flexibility, Emerald AI’s may be the most ambitious: asking data centers to dial into the grid’s needs. The company’s Conductor software, which can run on premises or in the cloud, builds on the research of chief scientist Coskun. Her group at Boston University showed in a pair of 2013 papers that a data center could watch the grid and help balance big power fluctuations, such as the intermittent effects of solar and wind power. By 2022, she and her colleagues had tested their methods on a cluster of 36 research servers and shown that the system could respect power limits without breaking the processes it was running. 

One of the most important questions for Conductor is deciding which AI processes can be slowed down to save energy without kneecapping performance. A lot of companies label their jobs by priority—a real-time chatbot query, for instance, might outrank something like a web search that’s part of a deep research project. When they don’t, Emerald AI tries to infer priority from the nature of the job. Conductor then analyzes the AI workload to determine how tweaking the power to a given processor will affect the performance and help meet the usage limits set by the grid operator.

“The performance curve changes for different kinds of workloads,” says Coskun. “Each AI job is going to have a different location on that curve. Our intelligence is figuring out where you are on that curve.” 

PETRA PÉTERFFY

Last year, Emerald AI began assessing the technology’s readiness for real-world use in a series of tests, raising the difficulty each time. The trials were carried out in partnership with the Data Center Flexible Load Initiative—a collaboration among tech companies like Google and Nvidia, utilities like Duke Energy, and grid operators like PJM that aims to help establish a repeatable framework for power-­flexible data centers.

The first challenge was in Phoenix, a fast-growing computing hub. For the test, Conductor took control of a group of server racks laden with 256 Nvidia A100 GPUs—hardware that can use about as much power as around 170 US homes. When presented with a simulation of a busy grid, Conductor reduced the power to the chips by 25% for three hours, while maintaining acceptable computing performance. Emerald AI and its partners reported the results in a paper in Nature Energy in December 2025.

The next trial forced the system to juggle surprise grid fluctuations without advance warning and redirect AI jobs from a data center in Virginia to a less busy one in Chicago. Then, in London, Conductor took the reins of equipment beyond the main GPU processors and faced a more complicated mix of fluctuations, including very short and long bouts of congestion—plus the notorious teakettle effect.

The progress so far shows that flexibility can work, at least in some situations, but only a small fraction of operators have pursued it as yet. “We’re just in the beginning innings of the game,” says Jesse Jenkins, one of the authors of the 2025 Princeton study and cofounder of Firma, a startup that works on data-center flexibility. “People are recognizing that this is a potential solution. The motivation is there; there are some bespoke examples. But there’s no uniform solution set that’s the default option, which is where we need to get.”


While data centers are going up across the US, no place on Earth comes close to the accumulated computing muscle in Northern Virginia’s Data Center Alley. The region is home to around 500 compute-crunching facilities, which represent 13% of the entire world’s capacity; the next two hot spots, Beijing and Oregon, contain 6% each.

There are proposals to build hundreds more facilities in Virginia, but a government study found that the state’s electricity demand will increase 183% (around 26 gigawatts) by 2040 if they all go forward, and supporting even half would be difficult. The power-flexible data center that Emerald AI, Nvidia, Digital Realty, and their partners are building in the suburb of Manassas could demonstrate how data centers can squeeze the power they need out of existing capacity. The facility, slated to come online later this year, is intended to give Conductor the chance to manage power at the largest scale yet and to respond to conditions on a live grid for the first time. In the UK demonstration, Conductor managed a 130-kilowatt AI cluster; in Manassas, it will pull the strings of a 96-megawatt hyperscale AI factory. 

Some degree of flex will play a key role as we transition away from fossil fuels and toward a future that has to juggle technologies like solar and wind power, batteries, and electric cars.

For PJM, the Manassas facility points to a potential path through the current power crunch. “We think data-center flexibility, in different forms, will be essential for the reliable integration of data-center load over the short to mid term,” says Scott Baker, who manages demand-side markets at PJM. 

But not all grid experts are so sanguine. PJM’s market monitor, which oversees the grid operator, says there are no workarounds when it comes to adding capacity. “The notion that large amounts of data-center load can be added without adding new generation is magical thinking,” says Joseph Bowring, an economist and the head of PJM’s market monitor since 1999.

One problem, he says, is that there’s no way to guarantee that a data center will actually take less power when demand is high. That is, absent any legal or regulatory push for flexibility or compliance, the utility won’t be able to step in to help prevent, say, a blackout. Utilities can rely on resources like power plants, but they can’t control or rely on data centers. “They do not want to be fully interruptible,” Bowring says of the facilities.

Stephen Empedocles, an advisor for technology companies, views flexibility as more of a tool than a silver bullet. “These approaches are excellent for improving grid reliability and getting more out of the infrastructure we already have,” he says, “but they are optimization tools.” They’re not substitutes for the “generation, transmission, and distribution expansion that will still be required,” he continues.

Flexibility advocates agree that over the long term, whether or not AI continues to boom, electrification will drive a need for more generation and transmission. Some degree of flex will play a key role in using grid infrastructure better as we transition away from fossil fuels and toward a future that has to juggle technologies like solar and wind power, batteries, and electric cars. A report published by the International Renewable Energy Agency in January 2026 found that grids around the world will need three times as much flexibility in 2030 as they had in 2019—and 10 times as much by 2050—to balance increasing demand with fluctuating supplies of renewable energy. 

The challenge of powering AI could provide just the spark we need to do the work of designing and building smarter, more flexible grids, says Coskun. “I think with a crisis like this, there’s no quick solution,” she says. “Sometimes a crisis like this creates an opportunity to do something differently.” 

Amos Zeeberg is a freelance science and technology journalist based in Bucharest. He’s developing a book about technology networks, including electric grids.

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Ovintiv raises 2026 guidance on productivity gains

Speaking to analysts and investors on July 24 after Ovintiv reported its second-quarter results, McCracken and his team said the efficiency gains stem from a cocktail of innovations around well designs, development patterns, and the usage of proppants and surfactants, among other things. “It starts with the culture, that relentless

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Atos launches sovereign cloud service to power comeback

Atos has launched a new sovereign cloud platform aimed squarely at European public sector bodies, healthcare providers and defense organizations. It’s the latest effort by European companies in their fight back against US dominance. Atos Sovereign Cloud offers a range of controls for data management, providing customers with resilience and

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Energy Secretary Secures Grid Across 17 States Amid Period of Hot Weather

WASHINGTON—The U.S. Department of Energy (DOE) issued an emergency order to keep Americans across 17 states powered during the region’s energy emergency brought on by hot weather conditions. The order directs the Southwest Power Pool, Inc. (SPP) to dispatch specified generation units and to order their operation as needed to maintain reliability. The order also authorizes SPP to direct backup generation resources to operate as a last resort before declaring an Energy Emergency Alert (EEA) 3 or during an EEA 3. The order was issued pursuant to a request from SPP. “The Trump Administration is tapping into an abundant supply of unused backup generation to maintain affordable, reliable, and secure power for hardworking American families and businesses,” said U.S. Secretary of Energy Chris Wright. “The previous administration’s energy subtraction policies weakened the grid, leaving Americans more vulnerable during emergency events. Thanks to President Trump’s leadership, we are reversing those failures and using every available tool to ensure Americans have continued access to affordable, reliable, and secure energy to power and cool their homes.” DOE estimates more than 35 gigawatts (GW) of unused backup generation remain available nationwide. On day one of his second term, President Trump declared a national energy emergency after the Biden administration’s energy subtraction agenda left behind a grid increasingly vulnerable to blackouts. Power outages cost the American people $44 billion per year, according to data from DOE’s National Laboratories. This order mitigates the possibility of power outages in the region and highlights the commonsense policies of the Trump Administration to ensure Americans have access to affordable, reliable, and secure electricity. The order is effective on July 26, 2026, and shall expire at 11:59 PM CDT on August 3, 2026.                                   

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Magnolia expands Giddings position with $4-billion WildFire Energy acquisition

In the filing, Magnolia said WildFire’s second-quarter 2025 production is expected to average 53,000 boe/d, about 70% oil, primarily from the Eagle Ford, Austin Chalk, and Woodbine formations. Magnolia said the acquisition would strengthen its position in the Eagle Ford/Austin Chalk trend by expanding its inventory of high-return drilling locations, adding development flexibility and longer laterals, and leveraging its technical expertise to improve well performance and lower costs. “WildFire has a large, low-decline oily PDP base with historic development centered on the Eagle Ford. While there are significant future Eagle Ford development opportunities, our technical teams see extensive future potential in the Austin Chalk with further upside in the Woodbine as well as other appraisal opportunities that should expand on our success in Giddings since 2018,” said Chris Stavros, Magnolia’s chairman, president, and chief executive officer. The deal is expected to result in a pro forma position in Giddings of more than 1.25 million net acres, add more than 500 miles of gas-gathering pipelines, and offer various cost savings, the company said. “Magnolia is guiding to $100 million in run rate synergies by the end of 2027, with savings coming from the chance to deploy long laterals, shared facilities and infrastructure and additional sand sourcing for operations from WildFire’s in-basin mine. As always, successful execution will be key for the longer-term success of the deal,” Enverus’ Dittmar said. Total consideration consists of $2.65 billion in cash, 32.2 million shares of Magnolia Class A common stock, and the assumption of $600 million of outstanding debt.

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Vår Energi inks deal to acquire BlueNord

Vår Energi ASA has agreed to buy BlueNord ASA as part of a proposed merger that, if completed, will expand Vår Energi’s presence beyond the Norwegian Continental Shelf (NCS), positioning the operator as Europe’s largest independent oil and gas producer. Acqusition of BlueNord would add producing assets on the Danish Continental Shelf (DCS) to Vår Energi’s current holdings, with the combined post-merger portfolio anticipated to lift long-term production to about 450,000 boe/d, with about 2.4 billion boe of reserves and resources and an estimated reserve and resource life of about 15 years. BlueNord’s portfolio includes interests in the Tyra, Halfdan, Dan, and Gorm hub areas, which are part of the Danish Underground Consortium operated by TotalEnergies SE. The assets are expected to contribute about 45,000 boe/d of net production beginning in 2026 and include about 195 million boe of net 2P reserves and 2C contingent resources, extending production beyond 2040. “The transaction marks a significant milestone in Vår Energi’s growth journey, creating the largest independent producer of oil and gas in Europe with a long-term production target of [about 450,000 b/d] and reinforcing our role as a reliable and secure supplier of energy to Europe,” said Nick Walker, Vår Energi’s chief executive officer. Vår Energi said the DCS assets complement its existing North Sea operations because of their geological, operational, and fiscal similarities to the NCS. The combination also expands the company’s exposure to European natural gas markets through access to the Nybro and Den Helder gas delivery points. The combined portfolio would maintain a production mix of about 65% oil and 35% natural gas, with operating costs projected to remain at $10-11/boe. The proposed merger remains subject to approval by BlueNord shareholders, regulatory and governmental approvals, license and partner consent, and other customary conditions. If approved, the companies said

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Bahrain’s GPIC enlists Fluor for new unit at Sitra complex

Gulf Petrochemical Industries Co. (GPIC) has awarded Fluor Corp. a contract to execute front-end engineering and design (FEED) for a proposed aromatics plant to be built at GPIC’s petrochemicals complex located across 60 hectares of reclaimed land in Sitra, Bahrain. As part of the contract, Fluor will deliver a FEED study based on commercially proven process technologies for the plant’s targeted production of 1.2 million tonnes/year (tpy) of paraxylene and 500,000 tpy of benzene, the service provider said on July 21. Critical building blocks for plastics, polyester fibers, and packaging materials, paraxylene and benzene production from the plant would help meet global demand for high‑performance consumer and industrial products, as well as expand capabilities of GPIC’s current operations at Sitra, Fluor said. GPIC’s existing complex currently uses a feedstock of natural gas domestically produced in Bahrain to produce about 1.2 million tonnes/day of ammonia, 1.2 million tonnes/day of methanol, and 1.7 million tonnes/day of urea. Neither Fluor nor GPIC revealed details regarding a timeline for completion of the proposed aromatics plant. GPIC is a joint venture of Bahrain Petroleum Co. (33.3%), SABIC Agri-Nutrients Investment Co. (33.3%), and Kuwait’s Petrochemical Industries Co. (PIC; 33.3%).

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Oil prices surge as Hormuz, Bab el-Mandeb risks escalate amid renewed US–Iran tensions

Oil prices jumped on Wednesday, July 22, with escalating geopolitical tensions and mounting risks to key maritime chokepoints driving the rally. International Brent crude rose nearly 5% to above $95/bbl, its highest level in almost 6 weeks, while US crude climbed more than 4% to above $88/bbl. The gains extend a strong upward trend, with prices up about 30% since the start of the month and more than 55% year to date, reversing declines seen after a mid-June memorandum of understanding (MOU) between the US and Iran. Stay updated on oil price volatility, shipping disruptions, LNG market analysis, and production output through OGJ’s Iran war content hub. The earlier agreement, aimed at de-escalating conflict and reopening the Strait of Hormuz, was declared “over” on July 8 by President Donald Trump. Since then, hostilities have intensified, with US forces carrying out an 11th consecutive night of strikes on Iran. Comments from US Secretary of State Marco Rubio further dampened expectations for near-term diplomacy, noting that while Washington remains open to talks, Iran does not appear to be engaging seriously. At the same time, security risks to global shipping have increased. The UK Maritime Trade Operations (UKMTO)  has reported multiple recent attacks on vessels in the region, including incidents that forced crews to abandon ships. As a result, traffic through the Strait of Hormuz has fallen sharply, with just 13 vessels transiting Monday and 9 on Tuesday, according to MarineTraffic data. Concerns are also growing at the Bab el-Mandeb Strait, another critical oil transit route linking the Red Sea to the Gulf of Aden. Iranian-backed Houthi forces in Yemen have threatened a maritime blockade targeting Saudi Arabia, raising fears of broader supply disruptions. While vessel traffic through Bab el-Mandeb remains relatively steady—73 ships transited Tuesday—it has edged lower and signs of hesitation among

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Global LNG trade hits record in 2025 as 2026 tests market resilience

Global LNG trade reached a record 437 million tonnes in 2025, up 6.3% year on year (y-o-y) and marking the fastest growth since 2022, according to the International Gas Union’s (IGU) World LNG Report 2026. The increase of roughly 25 million tonnes was driven primarily by rising US supply, alongside higher exports from Qatar, Malaysia, Angola, and Nigeria. Canada and the Mauritania–Senegal project also shipped their first LNG cargoes, expanding the pool of exporting countries. Investment kept pace with market growth. Developers sanctioned 68.4 million tonnes/year (tpy) of new liquefaction capacity in 2025—the highest annual total since 2019—bringing approvals over the 2021–25 period to about 206 million tpy, roughly double the volume sanctioned in the previous 5-year cycle. Much of the new capacity was concentrated in US Gulf Coast projects. The outlook for 2026, however, is more uncertain. The Middle East conflict has knocked Qatar and the UAE—together about 16% of global liquefaction capacity—off the market for periods this year, and missile strikes on Qatar’s Ras Laffan complex are expected to keep roughly 12.8 million tpy of capacity offline for 3-5 years. Shell PLC’s separately published LNG Outlook 2026 is blunter about the near-term picture: Depending on how quickly the Strait of Hormuz reopens, 2026 could see global LNG trade contract year-on-year—something that’s never happened before in the past decade of rapid growth Shell has tracked. The Asia Pacific has absorbed most of the supply shock so far, responding through storage draws, fuel switching, demand curtailment and increased spot buying, while a wave of US cargoes has been rerouted from Europe toward Asia to fill the gap. Despite near-term volatility, both reports highlight a strong long-term trajectory. IGU expects global LNG supply capacity, including existing and under-construction projects, to exceed 700 million tonnes by 2030, a roughly 40% increase from

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Up to 50% of data center capacity slated for 2026 could be delayed

A primary obstacle is electricity. After a number of instances where local citizens saw their electric bill skyrocket after a data center opened up shop in their neighborhood, there has been tremendous pushback from cities and states on large scale data centers. In some instances, operators are being required to provide their own power rather than get power from the public grid, according to Currence. Although projects powered entirely by on-site generation or hybrid systems account for fewer than 10% of announced facilities, they represent nearly half of the total announced capacity, according to the report. Mindful of their public image, hyperscalers are responding quickly to these demands. Google has expanded its strategy by acquiring a large renewable energy development pipeline, while Amazon has increased direct investments in solar generation and battery storage.

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When Buildability Breaks: What Prince William and New York Signal for Data Center Development

For several years, the Prince William Digital Gateway represented data center ambition at its largest scale: a proposed 2,100-acre technology corridor near Gainesville, Virginia, capable of accommodating tens of millions of square feet of digital infrastructure. Its location also made it uniquely contentious. The corridor bordered Manassas National Battlefield Park and other historic, environmental and residential resources, drawing the data center development debate beyond its usual industry and land-use constituencies. Opposition increasingly centered not only on the project’s scale, but on whether development of that magnitude belonged alongside one of the country’s most significant Civil War landscapes. In July 2026, that vision effectively ended. QTS Data Centers terminated its participation in the Digital Gateway and withdrew its remaining petitions before the Supreme Court of Virginia. The decision followed Compass Datacenters’ withdrawal in April, leaving neither of the project’s original developers pursuing the corridor. QTS said it reached the decision after “careful consideration,” while emphasizing that Virginia remains an important market for the company. From Proposed Capacity to Executable Capacity The collapse of the Digital Gateway is more than the cancellation of one unusually large development. It comes as the data center industry confronts a widening gap between announced capacity and executable capacity. Power remains the most visible constraint. But permitting discipline, environmental review, community acceptance and the durability of political support are increasingly determining whether a project can progress from land control and conceptual capacity to construction and operation. A separate development in New York underscored that shift less than two weeks after QTS withdrew. On July 14, Gov. Kathy Hochul issued Executive Order 62, establishing what the state describes as the nation’s first statewide moratorium on new hyperscale data centers. The order temporarily holds in abeyance certain incomplete state environmental permit applications for data centers capable of drawing at

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Q&A: Google’s AI and computing chief talks about its shapeshifting data centers

Mark Lohmeyer: We’ve seen the rise of agents and agentic use cases. Years ago, it was the chat phase: Ask a question, get an answer. Now we’re in the agentic era, where you express your intent, agents spin off multiple sub-agents, working in parallel, preserving state. This is a radical shift in what infrastructure needs to do; make them fast, cost effective, secure, reliable. We’re delivering infrastructure optimized for the age of agents. NW: What’s the goal of the infrastructure buildout, and what should customers expect regarding costs? ML: Ultimately, it’s about enabling customers with leading-edge capabilities and models at scale cost-effectively. With agents, inference transactions increase by 50x, 100x versus non-agentic workloads. We’re driving the cost per transaction down exponentially. In our latest platforms, we reduce the cost by almost 2x for the same work. Customers serve twice the number of users at the same cost, directly driving profitability.

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Google transforms its data center architecture for agent era

Google adjusted the Google Kubernetes Engine into an agent-native environment, where agents could be quickly spun up in sandboxes and containers. “From an infrastructure perspective, you need to spin up a bunch of TPUs or GPUs very rapidly. Then you need to be able to run them and spin them back down,” Lohmeyer said. Google also made drastic improvements to its silicon to support its middleware changes. It recently introduced new AI chips, with the TPU-8t for training, and TPU-8i for inference. The 8t chip has three times more computing power than the previous-generation Ironwood chip. The 8i chip has 384 megabytes of SRAM and 288GB of HBM3e memory, which is 50% more than the previous-generation chip. The platform is optimized for KV cache (key-value cache), which stores important contextual information needed by agents to make decisions, which reduces the round trips to other memory and storage systems. “Being able to store more of the KV cache directly on the chip allows you to respond much more rapidly and cost-effectively,” Lohmeyer said.

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10 Reasons You Cannot Afford to Miss DCF Trends Summit 2026

The data center industry has no shortage of AI infrastructure ambition. What it lacks is certainty. Power is harder to secure. Designs are advancing faster than facilities can be built. Supply chains remain vulnerable. Liquid cooling is adding operational demands. Projects that look viable on paper can still stall on permitting, commissioning or community opposition. The question in 2026 is no longer how large the AI opportunity may become. It is what can actually be delivered, and who has learned how to deliver it. That question defines the 2026 Data Center Frontier Trends Summit, August 4–6 at the Hyatt Regency Reston. Across three days, the people building, powering, financing and operating next-generation infrastructure will examine what is working, where execution is failing and how the market is responding. This is not a conference about whether AI will create demand. It is about who will be able to meet it. The advantage will belong to those who join the conversation before its conclusions become market consensus. Here are 10 reasons to be in the room. 1. The industry has entered the execution era For several years, the market has been defined by projected demand, capacity, density and investment. The next phase will be defined by execution. AI data center announcements remain abundant. Energized, commissioned and operational capacity is harder to find. DCFTS begins with a live editorial calibration, followed by “The New Geography of AI,” featuring EdgeCore CEO Lee Kestler, Data Center Frontier founder Rich Miller and DCF Editor in Chief Matt Vincent. The focus: how power, entitled land, utility partnerships and execution speed are determining where AI capacity can be built—and who can deliver it. Demand creates opportunity. Execution determines who captures it. 2. Power will be treated as the foundation of AI strategy Power is no longer one workstream

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Time to Power: Sage Geosystems CEO Cindy Taff on Geothermal’s AI Infrastructure Moment

Three years ago, the data center industry’s energy conversation was largely framed around emissions. Hyperscale operators were setting carbon-free energy targets, signing renewable power agreements, and aligning their expanding infrastructure portfolios with corporate sustainability commitments. The arrival of generative AI has not eliminated those priorities. But it has reordered them. “Three years ago, data center energy, they were really focused on low emissions, no emissions,” said Cindy Taff, CEO of Sage Geosystems. “Now the primary challenge is just enough energy.” Speaking on the Data Center Frontier Show podcast, Taff described an energy market being reshaped by the speed and physical scale of AI infrastructure development. After decades of relatively flat U.S. electricity demand, AI has introduced a new class of concentrated, rapidly arriving industrial load. The result is a shift away from thinking only about how much generating capacity exists in aggregate and toward a harder question: Can usable power be delivered at a specific site, on a predictable schedule, in the quantities an AI campus requires? For hyperscalers, neocloud providers, data center developers, utilities, and energy companies, that distinction is becoming central to project execution. “I think time to power is the most precious metric right now versus cost or total capacity,” Taff said. Capacity on Paper Is Not Power at the Site Announcements of new generation can create the appearance of an energy system capable of meeting rising data center demand. But a megawatt located far from a planned campus, trapped behind a transmission constraint, or unavailable until the next decade has limited value to a developer trying to energize an AI facility within several years. “Aggregate capacity is not going to solve the problem if the power really isn’t where and when you need it,” Taff said. Data centers are large physical facilities tied to specific parcels,

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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