An artificial intelligence (AI) tool will be used as a “smart mediator” between a data centre and Great Britain’s electricity transmission network to manage electricity demand as part of a demonstration project led by National Grid.
The project will see a live test of a tool built by a company called Emerald AI, utilising Nvidia GPUs (graphics processing units), to “dynamically adjust energy consumption” of a data centre in late 2025.
Nvidia GPUs are key pieces of hardware used as the foundation for AI tools and have led to Nvidia becoming the most valuable publicly listed company in the USA.
Trial should make better use of existing generation capacity – National Grid
National Grid did not name the data centre which would be used in the experiment, but said: “Increased flexibility of data centre consumption can unlock capacity and accelerate connections to the electricity network.”
Explaining the rationale for the test, National Grid said the Emerald AI tool would get data centres to temporarily use less electricity when general demand for electricity from the transmission grid is high.
“The electricity transmission network is designed with built-in redundancy to deliver world-class reliability and keep the lights on for customers,” it said.
“Capacity is typically available outside of peak events like hot summer days or cold winter storms, when there’s high demand for cooling and heating. That means, in many cases, there’s room on the existing grid to connect new data centres, if they can temporarily dial down energy usage during periods of peak demand.
“This strategic partnership will help position the UK as a global leader in AI and reduce the need for additional infrastructure by giving National Grid more confidence that data centres can lower their energy use when required.
“By increasing the utilisation of existing electricity infrastructure, National Grid, working closely with the National Energy System Operator, can better manage growing demand, attract investment in advanced computing, and support the UK’s transition to a more efficient and flexible energy system.”
National Grid said the demonstration would showcase how “a wide variety of AI workload types can be adjusted in real time”.
The company added: “By changing computing activity when the grid is under pressure, the demonstration will prove that AI data centres can act as responsive partners to the electricity network while maintaining performance standards for mission-critical workloads.”
National Grid also said it “made a strategic investment in Emerald AI” but did not disclose the value of the investment.
The partnership will “advance technical standards for AI data centre flexibility, collaborate with customers to bring this capability to the growing pipeline of UK data centres, and foster broader industry collaboration through the NextGrid Alliance”, according to National Grid.
“Through this collaboration, National Grid and Emerald AI are establishing a new blueprint for integrating AI and energy infrastructure – one that shows how data centres can help make the power grid more reliable, lower costs, and support clean energy,” it concluded.
Data centres already power-hungry, AI data centres even more so
Murphy Geospatial head of department – subsurface engineering David Sayad wrote for NCE in November 2024 where he said data centres are “energy-hungry sites, full of servers with strict security, need an uninterrupted power supply to operate and substations across the national grid will need more capacity to serve this infrastructure to make it viable”.
“Previously, UK data centres have been built around London. As data consumption grows, developers have started looking further afield after struggling to find adequate land and power in this area,” he added.
The power demand of AI data centres is expected to be so high compared to the electricity available from the electricity transmission grid that AI data centre developers are looking to power them with dedicated nuclear power plants.
On Monday, major small modular reactors (SMRs) announcement from the UK government saw Holtec, EDF and Tritax announce ambitions to develop “advanced” data centres powered by small modular reactors at the former Cottam coal-fired power station in Nottinghamshire.
Demonstrator to enable investment in ‘AI Factories’ – executives
National Grid chief strategy and regulation officer Steve Smith said: “As the UK’s digital economy grows, unlocking new ways to flexibly manage energy use is essential for connecting more data centres to our network efficiently.
“This groundbreaking trial with Emerald AI demonstrates how innovative technologies can help us optimise the grid, enable increased investment in advanced computing, and deliver real benefits to the wider UK economy.
“We’re excited to collaborate with Emerald AI and other partners as we progress this project, exploring how smart solutions can support economic growth and the nation’s future connectivity needs.
Emerald AI CEO Varun Sivaram said: “This partnership is about showing that AI infrastructure doesn’t have to be a burden on the grid—it can be a critical asset.
“Together with National Grid, we’re proving that flexible AI Factories can accelerate AI innovation in the UK while enhancing reliability and affordability for everyone connected to the grid.”
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