Energy research and development organization EPRI has launched a new initiative to explore how data centers can support the electric grid, enable better asset utilization, and support the clean energy transition.

DCFlex counts some of the most preeminent players in the utility and data center markets amongst its founders.

Power Grid
Transmission lines – Getty Images

They include Compass Datacenters, Constellation Energy, Duke Energy, the Electric Reliability Council of Texas, Google, Meta, New York Power Authority, NRG Energy, Nvidia, Pacific Gas and Electric Company, PJM Interconnection, Portland General Electric, QTS Data Centers, Southern Company, and Vistra Corp.

Commenting on the launch, Marc Spieler, head of global business development and strategy for the energy industry at Nvidia, said: "The DCFlex initiative is another example of how industry leaders can leverage data centers as a flexible resource on the grid to help address peak loads."

DCFlex plans to support real-world demonstrations showcasing operational flexibility across current and upcoming data centers and power markets.

Through these initiatives, DCFlex aims to develop reference architectures and share insights to promote the wider adoption of flexible practices that benefit electricity consumers.

The project will set up five to ten flexibility hubs to pilot new strategies between data centers and power providers.

The hubs are designed to enhance operational adaptability, streamline grid integration, and repurpose backup power as grid assets. Initial deployments are slated for early 2025, with testing anticipated through 2027.

"DCFlex is exactly the kind of collaboration needed to ensure we meet this demand in ways that also help us provide clean, affordable, and reliable energy for all," said PG&E Corporation CEO Patti Poppe.

The initiative follows concerns that rising AI and data center demand could overload the US grid.

This has led to significant funding commitments from the US Department of Energy for grid infrastructure build out. Earlier this month, the DOE announced that it would invest up to $2 billion in funding for 38 projects across 42 states to improve the resilience and reliability of the US power grid.