Google is funding one of the nation's largest "virtual power plants," paying homes and businesses indirectly to reduce electricity consumption during periods of peak demand so more grid capacity can be available for data centers. Under its expanded deal with Voltus, the program could provide up to 1,070 megawatts in the Mid-Atlantic PJM grid -- roughly the output of a large nuclear reactor. The New York Times reports: That electricity won't come from new power plants. Instead, Voltus will sign up homes and businesses and give them financial incentives to curb their usage when local power demand is high or the grid is strained. Many of these reductions could occur automatically, such as through smart thermostats that dial back air-conditioning during peak summer hours or batteries that can provide temporary on-site power. Each of these tweaks frees up only a small amount of power on its own. But by aggregating them across thousands of businesses and homes, Voltus says it can reliably provide lots of extra capacity when it's most needed, and do so within a few years. While tech companies will likely ultimately need to build traditional power plants if they want to keep building large data centers, this approach could be a faster, cheaper and less-polluting option in the interim. "We really see virtual power plants as a critical short-term solution," said Ellen Zuckerman, head of energy market development for North and South America at Google. "It's a way to invest in our communities, really double down on our clean energy ambition, but also meet capacity at speed and scale."

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