Google to Reduce AI Data Center Power Consumption During Peak Demand

Google has struck deals with Indiana Michigan Power and the Tennessee Valley Authority to curtail electricity usage at its AI data centers during peak demand periods. The MOVE comes as the explosive growth of artificial intelligence infrastructure strains power grids across the U.S., raising concerns about energy shortages and potential rate hikes.

The insatiable power demands of large language models, real-time analytics, and machine learning systems have created unprecedented pressure on regional electricity supplies. Tech companies are flooding utilities with connection requests for new AI data centers, particularly in areas where generation capacity already lags behind demand.

Grid operators warn of approaching capacity limits that could trigger higher commercial electricity rates, increased blackout risks, and project delays. The situation highlights the growing energy footprint of AI technologies as they become more deeply embedded across industries.