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Google and energy-management company Voltus have raised their target for a virtual power plant in the PJM grid region from 100 megawatts to 1 gigawatt. The plan would pay participating homes and businesses to reduce electricity use or provide battery power during periods of peak demand, but Google has not disclosed a timeline or which data centers the capacity would support.
Google and Voltus said Thursday they will pursue 1 gigawatt of virtual power plant capacity in the PJM Interconnection region, raising their previous target tenfold as electricity demand from data centers grows. The plan would enlist homes and businesses to reduce consumption or supply battery power at peak times, adding grid flexibility without relying on new power plants for that capacity.
The companies’ new goal expands a 100-megawatt target they set in June. Voltus, a California-based company that manages customer energy flexibility, would recruit participants and coordinate their response through software. The resources could include customers reducing electricity use when the grid is strained and businesses or households discharging batteries.
Voltus CEO Dana Guernsey said the company is seeking commitments that would remain in place through 2040. That would be longer than the commitments typically sought through many demand-response programs, she said. Long-term contracts could give participants a dependable revenue stream and help justify investments such as battery installations.
Guernsey said the capacity being arranged for Google would be in addition to Voltus resources already offered in PJM’s capacity market. The company currently manages more than 9 gigawatts of demand-response and virtual-power-plant capacity nationwide, according to the report. It has set a separate goal of reaching 20 gigawatts by 2030 and recently raised $225 million to support its plans.
A New Source of PJM Flexibility
The proposal matters because PJM is facing pressure to serve rising electricity use while adding new generation and grid infrastructure. The regional grid operator’s system serves about 67 million people across territory stretching from Illinois to Virginia. Demand-response programs can shift or reduce usage during high-demand periods, potentially helping manage grid stress while additional supply is developed.
Canary Media reports that the cost of securing enough capacity to meet peak demand in PJM has risen more than eightfold in recent years. PJM forecasts that data centers and other large loads could add 30 to 34 gigawatts of demand by the early 2030s. The grid’s recent peak was 162.6 gigawatts. The new target is substantial, but it is a planned procurement goal, not proof that a gigawatt of participating resources has already been secured or delivered.
For Google, the arrangement could offer a way to address some grid impacts associated with its data center expansion by paying other electricity customers to provide flexibility. For participating customers, the proposed contracts could bring revenue and support battery investment. The actual impact will depend on how much capacity Voltus can secure, when it can be called on and how it is dispatched.
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From 100 Megawatts to One Gigawatt
Voltus has worked in demand response for nearly a decade. In 2025, it introduced a “bring your own capacity” approach under which data center developers would pay other utility customers to reduce use during peak periods. The model is intended to connect the energy needs of large computing facilities with flexible demand elsewhere on the grid.
The June 100-megawatt target was the first stated step in Google and Voltus’ effort. Guernsey described it as “the first bite” and said the companies were looking to scale the program. Google is the only data center developer Voltus has publicly named as a partner for this approach, according to Canary Media’s report.
PJM has faced difficulty bringing new power plants online amid a crowded interconnection queue, the report says. Unlike conventional generation projects, a virtual power plant can draw on existing customer equipment and changes in energy use, rather than requiring construction of a new power station. Its available capacity still depends on customers’ commitments and the resources they can provide when needed.
“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 Still Unknown
Google has not disclosed when the 1-gigawatt target is expected to be reached, how much capacity Voltus has already contracted for this specific effort, or which existing or planned Google data centers in PJM territory it would support. The announcement sets a goal; it does not establish that all the resources are already enrolled or available to the grid.
It is also unclear how much of the target will come from reduced electricity use versus battery output, where participating customers will be located, and how often their resources may be called. Guernsey said the capacity would be carbon-free, excluding fossil-fueled backup generators and other emitting resources, but the companies have not provided a public breakdown of the resource mix or a measurement plan for the grid benefits.
The capacity is described as additional to Voltus’ existing PJM market participation. The announcement does not provide details on how the new commitments will be verified or how their availability through 2040 will be reflected in PJM’s reliability planning.
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Recruiting Customers for Long-Term Support
Voltus will need to secure commitments from enough homes and businesses to meet the 1-gigawatt goal, including customers able to reduce demand or supply stored power when called. The companies have not announced a recruitment schedule, interim targets or a date for reporting how much capacity has been contracted.
The next useful milestones will be details on enrollment, the location and type of resources, and how the program will coordinate with PJM’s existing capacity market. Google and Voltus have also not said when they will identify the data center projects or utility areas linked to the effort. Until those details are released, the announcement is best understood as an expanded procurement plan rather than a measure of capacity already operating.
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Key Questions
What did Google and Voltus announce?
They said they will pursue 1 gigawatt of virtual power plant capacity in PJM, ten times the 100-megawatt target they set in June.
What is a virtual power plant in this plan?
It is a network of customer resources coordinated through software. Participants may reduce electricity use during peak periods or provide power from batteries.
Has the 1 gigawatt already been secured?
The announcement describes a target, not a completed deployment. The companies have not said how much capacity has already been contracted for this specific effort.
Why is the plan aimed at PJM?
PJM is experiencing rising demand from data centers and other large loads, while new power plants face delays in the grid connection queue. Demand flexibility could help manage peak periods as the region works to meet that demand.
When will the virtual power plant be operating?
Google has not disclosed a timeline for reaching the target or identified which data centers the capacity will support. Voltus says it is seeking customer commitments through 2040.
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