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Google has entered into an agreement with energy supplier Voltus to create a 1-gigawatt virtual power plant, building upon their earlier 100 megawatt deal. This virtual power plant does not generate electricity itself, but instead aggregates flexible grid capacity into a central resource that can be deployed during peak demand periods.

The flexible capacity can come from battery storage or load-shedding measures, which involve asking others to reduce their electricity consumption temporarily by shutting down industrial processes or adjusting smart thermostats en masse. Google's partnership with Voltus will serve the PJM grid region, which is the largest power grid in the US, supplying electricity to 67 million people across 13 states and Washington DC.

The deal is seen as a public relations win for Google, as the increased demand for electricity by its data centers and those of other hyperscalers is driving up prices. Additionally, the additional load is straining local infrastructure in some areas, leading to increased capital costs for utilities and higher prices for existing electricity consumers.