Pull to refresh
Logo
What Changed
Following Why Sign Up
Google expands PJM virtual power plant to 1 gigawatt

Google expands PJM virtual power plant to 1 gigawatt

Built World

A 1,070-megawatt addition to June's 100-megawatt deal brings the total near 1.2 gigawatts, under a contract that runs to 2040.

October 22nd, 2026: Google expands VPP to about 1.2 gigawatts across PJM

Overview

Updated Oct 28

Google and Voltus have added 1,070 megawatts of virtual power plant capacity across PJM, on top of the 100 megawatts they signed in June. Google calls the result a 1-gigawatt plant; the combined total is about 1.17 gigawatts.

Nothing new gets built. Voltus enrolls batteries, smart thermostats and factories that cut power when the grid strains, and pays them from Google's contract, which runs to 2040. Voltus says Google committed to carbon-free capacity only, ruling out diesel or gas backup.

Why it matters

Google is paying homes and businesses to cut peak power use, testing whether demand flexibility can hold down energy costs as data centers multiply.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

1,170 MW
Total PJM virtual power plant capacity
The 1,070-megawatt tranche announced Oct. 22 on top of the 100 megawatts signed in June.
2040
Contract runs through
Voltus is securing customer commitments to cut power or supply battery juice through 2040, well past PJM's three-year auction horizon.
$350,000
Potential participant earnings per MW-year
Voltus says energy users in PJM can earn up to this through demand response payments.
$523.5M
PJM demand response revenue, 2025
Up 240% from 2024 per PJM's market monitor, driven by soaring capacity prices.
8.5 GW
Voltus distributed assets under contract
Voltus holds this capacity across North America and aims for 20 GW by 2030.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

EZ
Ellen Zuckerman
Head of energy market development for North and South America at Google
Leading Google's virtual power plant expansion
 Dana Guernsey
Dana Guernsey
Chief executive officer of Voltus
Building a 1.17-gigawatt virtual power plant for Google, contracted through 2040
RH
Ryan Hledik
Principal at the Brattle Group
Co-author of a study on virtual power plants

Organizations Involved

Google
Google
Technology company
Contracting distributed capacity to offset data center load; its Voltus deal now totals about 1.2 gigawatts

Operates data centers across PJM territory and is one of the world's largest corporate buyers of electricity.
Voltus
Voltus
Demand response company
Filling a 1.17-gigawatt virtual power plant for Google in PJM, contracted through 2040

An aggregator that pays homes and businesses to reduce electricity use during grid stress.
PJM Interconnection LLC
PJM Interconnection LLC
Regional transmission organization
Grid operator where the Google-Voltus VPP operates

Operates the largest wholesale electricity market in the US, serving 67 million people across 13 states and Washington, D.C.
Federal Energy Regulatory Commission (FERC)
Federal Energy Regulatory Commission (FERC)
US federal regulator
Rejected PJM's 'bring your own capacity' proposal in October 2026

Regulates US wholesale electricity markets and interstate electricity transmission.

Timeline

2025 October 2026

5 events Latest: October 22nd, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Google expands VPP to about 1.2 gigawatts across PJM

    Latest Agreement

    Google and Voltus announce a 1,070-megawatt addition to their June deal, bringing the PJM virtual power plant to roughly 1.2 gigawatts. The contract runs through 2040 and Voltus expects three to four years to fill it.

  2. FERC rejects PJM's 'bring your own capacity' plan

    Regulatory

    FERC largely rejects PJM's plan requiring new data centers to supply their own capacity.

  3. Google signs initial 100-MW virtual power plant deal

    Agreement

    Google and Voltus sign a 100-megawatt virtual power plant agreement in PJM.

  4. Voltus acquires Brightfield AI

    Acquisition

    Voltus acquires Brightfield AI to support battery-focused VPP capacity.

  5. Demand response revenue soars as PJM capacity prices spike

    Market

    Demand response revenue jumped 240% to $523.5 million as capacity prices soared.

Scenarios

1

Google-Voltus VPP hits full 1-GW capacity by 2030

Likely Resolves by Oct 22, 2030

Discussed by: Google and Voltus leadership; Voltus expects a 3-4 year ramp to full capacity

Voltus signs up enough residential, commercial, and industrial flexibility across PJM to reach the full contracted capacity. The contract runs through 2040, giving participants a decade or more of committed revenue that could justify investments in batteries and automated load controls.

2

Regulators restrict VPP participation in PJM

Unlikely Resolves by Jan 1, 2028

Discussed by: Canary Media and Utility Dive, noting FERC's rejection of PJM's BYOC proposal leaves regulatory uncertainty

FERC's rejection of PJM's 'bring your own capacity' plan leaves open how PJM will address data center load growth. PJM could propose new rules that tighten how demand response and VPP capacity bids into its market, or states could impose requirements that complicate aggregation across the region.

3

VPP model spreads to other hyperscalers

Possible Resolves by Oct 22, 2028

Discussed by: Industry sources quoted in Utility Dive, who call the contracts a turning point for distributed resources

If the Google-Voltus deal proves that contracted distributed capacity can offset data center load, other hyperscalers could follow with VPP agreements of their own. Voltus's Bring Your Own Capacity initiative is designed to make this easier, and its $225 million raise funds the ramp.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2010s-2020s

Corporate renewable power purchase agreements (2010s)

Google, Amazon, Microsoft, and Meta signed long-term power purchase agreements for utility-scale wind and solar, giving developers the revenue certainty to finance large projects. Corporate contracts became one of the biggest drivers of renewable buildout.

Then

Developer financing costs fell as buyers committed to multi-year offtake, and renewables scaled rapidly.

Now

Corporate PPAs became a standard tool for financing clean energy, reshaping how projects are developed.

Why this matters now

Voltus CEO Dana Guernsey draws this exact comparison: VPP contracts offer the demand-side equivalent, multi-year revenue certainty for flexible, distributed assets.

August 2020

California rolling blackouts (2020)

A severe heatwave pushed California's grid operator to order rotating outages for the first time since the 2001 energy crisis. Evening demand during the heatwave outpaced available supply.

Then

Customers across the state lost power in rotating blocks, and state agencies investigated resource adequacy.

Now

The episode sharpened focus on demand-side resources and peak management as tools for grid reliability.

Why this matters now

PJM faces a similar demand-versus-supply squeeze as data center loads grow; VPPs aim to shave peak demand without building new power plants.

Sources

(11)
+5
Google (official blog) Utility Dive Canary Media DNYUZ Fast Company Data Center Dynamics GlobeNewswire (Voltus release) Renewables Now Grid Innovation Hub Intersolar & Energy Storage North America Hoodline