Demand response (load flexibility)

Demand response is a data center's ability to reduce or shift its electricity draw on request from a grid operator, acting like a "ghost battery" that absorbs grid stress instead of drawing on it during peak demand. Emerald AI has demonstrated 25% load curtailment without interrupting GPU workloads, while a 2025 Duke University study found that curtailing just 0.25-1% of annual consumption during critical hours could let the grid absorb up to 100 GW of new load without major upgrades. Texas's SB6 policy now requires large loads over 75 MW to curtail power on instruction during declared grid emergencies, and ERCOT projects up to 40 GW of new data center demand by 2028 against roughly 85 GW of current peak demand. Utilities increasingly offer faster interconnection in exchange for flexibility commitments, making demand response a way to jump grid queues, not just cut costs.