Co-Designing/Optimizing Data Centers and Power Grids: Enhancing Reliability and Energy Abundance for AI Advancements
As Artificial Intelligence (AI) technologies advance, data centers are becoming a dominant and fast-growing source of electricity demand. This surge presents a dual challenge: the grid is ill-equipped for such rapid, large-scale increases, leading to instability and higher costs, while data centers require exceptionally stable power to prevent costly failures. This session presents an opportunity to reframe this challenge. We explore how the inherent flexibility of many AI workloads—which can be paused, rescheduled, or relocated—offers a pathway to transform data centers from a grid problem into a valuable asset.
We will detail two interconnected strategies: 1) Co-optimized operations to dynamically coordinate data center loads with grid needs, effectively turning them into responsive assets that can participate in electricity markets, and 2) Co-design/co-planning to integrate data centers and their flexibility into future power infrastructure expansion and market design. The overarching objective is to develop comprehensive technical plans that lead to improved grid stability, reduced operational costs, and a strong energy foundation supporting U.S. AI leadership.