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Google and energy-management company Voltus have raised their virtual power plant target in PJM from 100 megawatts to 1 gigawatt. The planned capacity would come from businesses and households that reduce electricity use or provide battery power during grid peaks; the companies have not disclosed a timeline or specific data centers it would support.
Google and energy-management company Voltus plan to secure 1 gigawatt of virtual power plant capacity in the PJM Interconnection region, expanding a 100-megawatt goal announced in June. The effort would pay participating homes and businesses to reduce electricity use or supply battery power during periods of peak demand, as data center growth adds pressure to the regional grid.
The companies’ announcement raises their target tenfold, but describes a goal to procure capacity rather than a completed resource. Voltus coordinates customer loads through software, arranging for participants to use less power or provide electricity from batteries when the grid needs support. The announced capacity is intended for PJM, which serves about 67 million people across parts of 13 states and the District of Columbia.
Voltus CEO Dana Guernsey said customers are being asked to commit to providing grid services through 2040, a longer period than many demand-response programs require. Those commitments could give Google a longer-term resource to present to utilities and state regulators, while giving participating customers contracted revenue that may support investments such as batteries. Guernsey said the gigawatt being secured for Google would be in addition to Voltus’s existing PJM capacity-market bids.
Google has not provided a schedule for reaching the target or specified which existing or planned data centers the capacity would support. Guernsey said the program would use 100% carbon-free capacity, rather than fossil-fueled backup generators or other emitting resources. The announcement does not provide details on how that commitment will be measured or verified.
A Flexible Resource for PJM
The proposal matters because PJM faces a mismatch between fast-growing electricity demand and the time required to add conventional generation and grid infrastructure. According to the source report, PJM forecasts that data centers and other large loads will add 30 to 34 gigawatts of demand by the early 2030s. The grid’s recent peak was 162.6 gigawatts.
A virtual power plant can aggregate many smaller actions—such as temporarily reducing commercial energy use or discharging batteries—into a resource that can help meet peak needs. Unlike a new power plant, it does not require constructing a single generating facility. If the target is delivered and available when needed, it could provide grid flexibility while data center operators seek power for energy-intensive computing. The scale of the plan makes it relevant to local customers too: participation could bring revenue or help fund storage, though the companies have not published expected payments or customer numbers.
The project is also part of a wider debate over who pays for the electricity infrastructure needed for data center expansion. Google’s proposed arrangement would have the company pay other utility customers for flexibility, rather than relying only on new generation and network upgrades. The announcement sets a target, however, and does not establish how much pressure it will ultimately take off the grid.
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From 100 Megawatts to One Gigawatt
Voltus has worked in demand response for nearly a decade and manages more than 9 gigawatts of demand-response and virtual power plant capacity across the United States, according to the report. In 2025, it introduced a “bring your own capacity” approach: data center developers would pay other electricity customers to reduce consumption during peak periods. Google is the only data center developer the company has publicly identified as a partner on this approach.
The two companies set their initial 100-megawatt target in June. Guernsey described that amount as a first step toward a larger program. The expansion comes as PJM’s capacity costs have risen more than eightfold in recent years, according to the report, amid rising demand and difficulty bringing new power plants online through a congested interconnection queue.
Voltus has set a separate companywide goal of 20 gigawatts by 2030 and raised $225 million earlier this month, the report said. Those figures describe Voltus’s broader business ambitions, not the amount committed to Google in PJM.
“support regional reliability and deliver direct economic benefits to local communities.”
— Ellen Zuckerman, Google’s head of energy market development for North and South America
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Timeline and Delivery Details
The companies have not said when the 1-gigawatt target will be reached, how much capacity is already under contract, or how it will be divided among households, businesses and battery systems. They also have not linked specific portions of the plan to particular Google data centers or disclosed what share of those facilities’ demand the program could offset.
It remains unclear how customer participation and performance will be tracked over the long commitments through 2040, and what arrangements would apply if participants cannot deliver reductions or battery output when called. The source report also does not give details on the program’s costs, customer payments or verification of the stated carbon-free capacity. The target is not a guarantee that a gigawatt will be available at every peak period.
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Contracting and Grid Availability
The next material developments will be whether Voltus can sign enough customers and resources to support the target, and when the companies expect those resources to become available. Further information on customer participation, battery deployment and the method for counting carbon-free capacity would clarify how the plan will work in practice.
Voltus’s capacity is also distinct from the resources it already bids into PJM’s capacity market, Guernsey said. How the new Google-backed commitments interact with PJM’s existing market and reliability processes will be relevant as the grid prepares for forecast load growth. Until the companies provide a timeline and implementation details, the 1-gigawatt figure remains a procurement goal rather than confirmed operating capacity.
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Key Questions
What did Google and Voltus announce?
They set a goal to procure 1 gigawatt of virtual power plant capacity in PJM, up from a 100-megawatt target announced in June.
How would the virtual power plant work?
Voltus would coordinate participating businesses and households to reduce electricity use during peak demand or provide power from batteries. The announcement does not specify the number or types of participants.
Why is the plan focused on PJM?
PJM serves about 67 million people and is facing rising demand, including from data centers. The grid operator forecasts 30 to 34 gigawatts of additional demand from data centers and other large loads by the early 2030s, according to the source report.
When will the 1 gigawatt be available?
No timeline has been disclosed. The companies have announced a procurement target, not confirmed that the full capacity is contracted or operating.
Will the capacity be carbon-free?
Guernsey said the capacity Voltus is securing for Google will be 100% carbon-free. The announcement did not include details on how that commitment will be verified.
Source: rss
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