Data Centers Are Emerging as Key Players in Grid Stability


As energy systems face increasing strain from rising demand and the transition to renewables, flexibility is becoming the new gold standard for grid reliability. Surprisingly, data centers—once seen solely as power-hungry infrastructure—are stepping up to meet the challenge. With the ability to rapidly reduce consumption or activate standby power during price spikes or grid emergencies, these facilities are helping stabilize the grid in real time. Their responsiveness makes the entire system more resilient, offering utilities a unique and valuable partner in balancing supply and demand. It’s a shift that highlights how digital infrastructure can serve as both a driver and a safeguard of modern energy systems.

To explore how this innovation works in practice, we turn to Darcy Neigum of Montana-Dakota Utilities and Nick Phillips of Applied Digital.

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