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NVIDIA, Emerald AI, utilities test flexible AI data centers to ease grid constraints

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Emerald AI, an NVIDIA-backed startup said that data centers could act as “shock absorbers” for the grid. (Photo: NVIDIA Blog)

NVIDIA and startup Emerald AI are working with a group of U.S. power companies to test a new model for powering AI infrastructure as electricity demand from data centers continues to accelerate.

Instead of treating data centers as fixed, always-on loads, the collaboration explores flexible data centers that adjust power use based on grid conditions, what NVIDIA calls “AI factories.” As renewable energy expands and grid constraints tighten, this approach is being tested as a way to bring new AI capacity online faster while easing pressure on power systems.

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