I&M and Google Submit Joint Contract Proposal Focused on Demand Response for Data Center Operations

Indiana Michigan Power (I&M), a subsidiary of American Electric Power, has filed a joint contract with Google proposing a demand response structure aimed at supporting I&M’s electricity capacity needs. The filing, submitted to the Indiana Utility Regulatory Commission (IURC) on July 30, outlines a custom approach to demand response that aligns with Google's operational capabilities and supports efforts to maintain reliable and affordable electric service.

Under the proposed agreement, Google would participate in I&M’s demand response program by adjusting or shifting electricity usage during periods of high demand. This approach is intended to help reduce peak load on the grid and is similar to existing demand response programs already offered to residential, commercial, and industrial customers.

“I&M is excited to partner with Google to enable demand response capabilities at their new data center in Fort Wayne, IN. As we add new large loads to our system, it is critical that we partner with our customers to effectively manage the generation and transmission resources necessary to serve them. Google’s ability to leverage load flexibility will be a highly valuable tool to meet their future energy needs,” said Steve Baker, president and chief operating officer of I&M.

Demand response programs help manage energy usage by encouraging customers to reduce consumption during peak hours—typically late afternoons and evenings on weekdays—when demand on the electric grid is highest. These programs aim to help balance electricity supply and demand, particularly during periods of extreme weather or increased energy usage.

“As AI growth accelerates, we recognize the need to expand our demand response toolkit and develop capabilities specifically for machine learning workloads. Working closely with I&M to include load flexibility as part of the overall supply plan, we can support future power needs even where power generation and transmission are constrained. We want to be thoughtful about how we can continue to be a good grid citizen and see this as a vital tool for enabling responsible data center growth,” said Amanda Peterson Corio, Global Head of Data Center Energy, Google.

If approved by the IURC, the agreement is expected to reduce I&M’s long-term generation requirements and related costs, which could benefit all customers. Google’s participation would also represent a contribution toward efforts to support the sustainability and affordability of the utility’s electric service.

In April 2024, Google announced plans to build a $2 billion data center in Fort Wayne. The project is one of the largest economic development investments in Indiana and is anticipated to have a substantial impact on the local community.