Google buys 1,070 MW of distributed capacity from Voltus to free up space on the PJM grid

Google announced on October 22, 2026 that it will buy 1,070 megawatts (MW) of distributed capacity from aggregator Voltus to free up space on the grid of PJM Interconnection, the largest electricity market in the United States, and connect its data centers there. The deal expands tenfold the initial 100 MW target the two companies set in June.

According to Canary Media, PJM serves about 67 million people and its cost of securing capacity for peak demand multiplied more than eightfold in a few years; the operator expects data centers and other large loads to add between 30 and 34 gigawatts (GW) of new demand toward the early 2030s, on a system that reached a peak of 162.6 GW. Latitude Media reports that the contract extends the offer through 2040 and covers the load of several data centers in the region.

The figure is not a generation cut: it is a block of virtual power plant (VPP), a network of homes, businesses and batteries whose demand is controlled with software to lower consumption during peak hours. Voltus operates more than 9 GW of demand response in the country, according to Canary Media. For northern Mexico the model is relevant because CENACE, the national electric system operator, manages demand response programs in the balancing market, subject to rules of the Energy Regulatory Commission (CRE).

The operational detail points to batteries. Dana Guernsey, CEO of Voltus, told Latitude Media that a good part of the gigawatt will be behind-the-meter batteries at commercial and industrial customers, and that long-term contracts keep those customers from taking on market risk. The executive said the first 100 MW block was met with oversubscription. Voltus raised 225 million dollars in its Series D and set a goal of 20 GW by 2030, according to Canary Media.

Canary Media reports that the Federal Energy Regulatory Commission (FERC) rejected in early October PJM's plan to require new data centers to bring their own capacity. Tim Hade, chief operating officer of Voltus, said at Latitude Media's Flex Summit that the industry must demonstrate within three to five years that it can operate at levels of 10, 15 and 20 GW. For Mexico, the point to watch is whether wholesale electricity market rules allow multi-year contracts for distributed demand aggregators, a piece that decides whether the model crosses the border.

This article was written with the assistance of artificial intelligence from verified sources and reviewed by a human editor before publication.