Google and utility Indiana Michigan Power (I&M) have secured approval from the Indiana Utility Regulatory Commission to deploy a demand response system to minimize the impact of Google’s Fort Wayne data center on the grid.

According to local reports, Google will cut back the energy usage of the facility during periods of grid stress, in addition to injecting some of its low-carbon energy capacity into the grid. In turn, I&M has agreed to discount Google’s electricity rates when it cuts back its energy usage.

According to the utility company, the deal will prevent the need for large-scale upgrades on the electrical grid, which would have been passed on to regular ratepayers. Instead, the utility claims that the deal will lower electricity rates for smaller customers, with Google offsetting the costs.

“This commission‑approved agreement helps Indiana Michigan Power (I&M) keep electricity reliable and affordable as our communities grow. By working with Google to shift energy use away from peak hours, similar to existing customer programs, I&M can lower system costs, improving reliability and delivering savings for all customers,” said an I&M spokesperson.

The companies forged an agreement to deploy the demand response structure last August. The agreement was signed with I&M and the Tennessee Valley Authority (TVA), as part of a broader strategy by Google to bring flexible demand capabilities into its data center fleet, enabling the firm to shift or reduce power demand during certain times of the year.

Google brought its Fort Wayne data center online in December of last year. Plans for the data center - previously known as Project Zodiac - were revealed in April 2024. Filings with the local government suggested it could be a 12-building data center campus and span more than 700 acres of land, and was developed in partnership with I&M. According to Google, the data center will be used to support services including Google Maps, Gemini AI, and Google's cloud customers.

Elsewhere in Indiana, Google is developing a 390-acre campus in Morgan County.

I&M provides electric service to 46 cities in six counties in southwestern Michigan and 118 communities in 24 counties in northern and northeastern Indiana.