The Energy Mix
09 Jun 2026

Google is paying households and businesses to let it dial down their energy use, freeing up grid capacity for its data centres without building new infrastructure.

The tech giant is partnering with virtual power plant (VPP) operator Voltus in a three-year deal to form a network of distributed energy resources, like smart thermostats and batteries, that can be used to manage electricity demand during peak periods. The network could aggregate up to 100 megawatts of capacity per year across the PJM Interconnection region-the largest grid operator in the United States, Voltus said in a release.

Google will pay Voltus to establish a VPP network of distributed energy resources in thousands of households and businesses, aiming to free up capacity for Google's data centre expansion. Participants will be compensated for allowing their devices' electricity use to be adjusted or discharged when needed.

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"We are proud to work with Google to bring clean capacity online while helping our customers save money," said Voltus CEO Dana Guernsey. "This initial phase of our Google partnership is pioneering a model that large load customers can follow, and we expect it to accelerate the role of distributed energy resources as a capacity solution at scale."

The deal will be the first commercial deployment by a hyperscale company of Voltus's Bring Your Own Capacity (BYOC) model, reports DataCentre Magazine.

The BYOC approach works because current electricity systems build physical infrastructure ready to meet peak demand periods, like hot days when air conditioning use increases. Most of the time, that available capacity sits idle, though it could be used for applications like data centres.

However, companies like Google can't rely on that capacity without some way of ensuring sufficient electricity remains available when peak demand hits. Compared to increasing capacity by building additional power generation infrastructure, the VPP is less costly and not as vulnerable to regulatory bottlenecks.

One potential snag is that VPPs rely on voluntary participation, and past initiatives have had trouble getting people to sign up, reports MIT Technology Review. In a study of one VPP for managed electric-vehicle charging in California, only 1% of EV owners enrolled in managed charging without an economic incentive, and only 4.6% enrolled when a US$40 incentive was available.

But in Ontario, the Independent Electricity System Operator was able to sign up 100,000 households in six months for an electricity demand management program in 2024.

Participation can vary by region and application, but Google's deal with Voltus faces an extra hurdle-71% of Americans oppose data centre construction in their area, according to recent Gallup polling.

Source: The Energy Mix