Grid software startup Emerald AI has launched the AI Energy Management Alliance (AEMA), a coalition including Google, Nvidia and Anthropic, along with utilities AES, Constellation, National Grid and NRG Energy, aimed at making demand response a standard part of data center development. The alliance argues that allowing data centers to temporarily reduce electricity use during peak periods could enable an additional 100 gigawatts of data center capacity to connect to the grid.
Demand response has long been used by utilities to manage peak loads, traditionally with large industrial users like factories agreeing to reduce consumption during high-demand periods in exchange for payment. Data centers have increasingly participated as well, though often by relying on diesel backup generators. Emerald AI’s software instead coordinates directly between utilities and data centers, allowing noncritical tasks to be paused or shifted to facilities with available grid capacity, functioning similarly to battery storage in its responsiveness.
The company recently raised $150 million in a Series A led by Energize Capital and DCVC, providing capital to scale the technology more broadly. Google and Enel X have pursued related approaches, with a Goldman Sachs study suggesting that limiting peak grid usage could free up 76 gigawatts of capacity nationally.
Ayse Coskun, Emerald AI’s chief scientist, said the technology could reduce, but not eliminate, the industry’s need for new power generation sources as AI compute demand continues rising.
