The mechanics of data center flexibility

With Google’s expanded demand response and EPRI’s DCFlex initiative, the industry is putting its early demand-shifting capabilities to the test. So how does data center flexibility actually work?

An episode of the Catalyst with Shayle Kann podcast, hosted by Latitude Media, titled "The mechanics of data center flexibility" was published on August 28, 2025 and runs 36 minutes.

August 28, 2025 ·36m · Catalyst with Shayle Kann

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Summary

Adding flexibility to data center loads could ease strain on the grid and reduce the need for costly new generation. And, according to one study, shaving off just a few megawatts during peak hours could also unlock unused capacity —as many as 98 gigawatts in the U.S — if those facilities reduced load by just 0.5% each year. The problem: data centers promise near-perfect reliability, often “five nines” (99.999% uptime) in service-level agreements with customers. That leaves little room to adjust something as critical to reliability as power. But times are changing. The data center market is reckoning with the constraints of the power grid and growing concern about pushing up electricity prices to pay for new generation. In July, the Electric Power Resource Institute’s DCFlex demonstration at an Oracle data center in Phoenix, Arizona, reduced load 25% during peak demand. And this month Google expanded its demand response through two new agreements with Michigan Power and the Tennessee Valley Authority. So what are the actual mechanics of data center flexibility? In this episode, Shayle talks to Varun Sivaram, founder and CEO of Emerald AI. The startup’s data center flexibility platform powered EPRI’s DCFlex demonstration. Shayle and Varun cover topics like: What people often misunderstand about how much of their nameplate capacity data centers actually use The distinct load profiles of training, inference, and other workloads How data centers can pause, slow, or shift workloads in time or space to reduce demand What it will take for flexibility solutions like Emerald AI to earn operator trust How much flexibility data centers can realistically achieve Varun’s long-term vision for evolving from occasional demand response to weekly or even daily load shifting Resources: Latitude Media: Nvidia and Oracle tapped this startup to flex a Phoenix data center Latitude Media: Google expands demand response to target machine learning workloads Catalyst: The potential for flexible data centers Credits: Hosted by Shayle Kann. Produced and edited by Daniel Woldorff. Original music and engineering by Sean Marquand. Stephen Lacey is our executive editor. Catalyst is brought to you by Anza, a solar and energy storage development and procurement platform helping clients make optimal decisions, saving significant time, money, and reducing risk. Subscribers instantly access pricing, product, and supplier data. Learn more at go.anzarenewables.com/latitude. Catalyst is supported by EnergyHub. EnergyHub helps utilities build next-generation virtual power plants that unlock reliable flexibility at every level of the grid. See how EnergyHub helps unlock the power of flexibility at scale, and deliver more value through cross-DER dispatch with their leading Edge DERMS platform by visiting energyhub.com. Catalyst is brought to you by Antenna Group, the public relations and strategic marketing agency of choice for climate and energy leaders. If you're a startup, investor, or global corporation that's looking to tell your climate story, demonstrate your impact, or accelerate your growth, Antenna Group's team of industry insiders is ready to help. Learn more at antennagroup.com.