Unlocking Hidden Grid Capacity for Data Centers
Data center developers face significant challenges securing reliable power from utilities. Long wait times for grid connections are hindering growth, especially with the increasing demand from AI and hyperscalers.
Gridcare offers a solution. The company uses AI to identify existing, untapped grid capacity, effectively acting as a matchmaker between data centers and utilities.
How Gridcare Finds Hidden Capacity
Gridcare maps the existing power grid and uses generative AI to forecast future changes. This analysis considers factors like fiber optic availability, natural gas and water resources, extreme weather risks, permitting processes, and community sentiment towards data center development.
“There are 200,000-plus scenarios that you have to consider every time you’re running this study,” says Amit Narayan, founder and CEO of Gridcare.
Gridcare then cross-references its findings with federal grid usage guidelines to ensure regulatory compliance. The company verifies its data with the relevant utility companies before presenting potential connection points to data center developers.
Solving the Power Puzzle
Gridcare works with hyperscalers and data center developers to understand their expansion plans and operational parameters. This allows the company to precisely match data center needs with available grid capacity.
Solutions may involve data centers briefly utilizing on-site backup power or supporting the development of new grid-scale battery installations. Gridcare is also exploring auctioning access to newly discovered capacity in collaboration with utilities.
Gridcare charges data center developers a fee based on the amount of unlocked capacity, a cost-effective solution compared to building independent power plants.
The company estimates it can unlock over 100 megawatts of hidden capacity, offering a much-needed solution to the growing power demands of the data center industry.
Recently, Gridcare closed an oversubscribed $13.5 million seed round led by Xora, Temasek’s deep tech venture firm, with participation from several other investors including Acclimate Ventures, Aina Climate AI Ventures, Breakthrough Energy Discovery, Clearvision, Clocktower Ventures, Overture Ventures, Sherpalo Ventures, and WovenEarth.
