The Challenge

As one of the fastest-growing electricity users, data centers represent a critical frontier for energy efficiency, demand response, and virtual power plant (VPP) solutions. With demand from these facilities expected to more than double between 2023 and 2030—driven in large part by the energy intensity of generative AI—utilities face mounting pressure to integrate data centers into grid flexibility efforts.

The Client

Uplight is a technology company that enables energy providers, ecosystem partners, and consumers to conserve, deploy, manage, and monetize energy resources. A market leader in customer energy engagement and grid-edge technology, they are developing tools to support load flexibility in the data center sector. To ensure these solutions align with real-world customer needs and constraints and tailor their offerings accordingly, Uplight engaged See Change Institute to better understand the behaviors, motivations, and barriers of energy decision-makers in this space.

Our Approach

We conducted 12 in-depth interviews with professionals responsible for energy strategy at various types of data centers across the U.S. These conversations provided valuable insight into how data centers view energy management, what drives or deters participation in grid programs, and how solution providers and utilities can more effectively engage them.

Key Findings

Our research surfaced several key recommendations for program design and customer engagement related to data centers:

1. Establish strong relationships with data center energy managers at the start. New projects that require more frequent conversations with the utility can serve as a great touch point to establish positive relationships and then retain close collaboration, particularly as new opportunities arise. Keeping the same account point of contact or enabling a smooth transition from one account manager to another can bolster the data center-utility relationship.
2. Tailor approaches for different data center profiles. A singular strategy is unlikely to resonate with the diverse data center industry. Instead, fine-tune distinct approaches for various types of data centers and their unique stakeholders, including third-party vendors, multinational companies, and smaller, local centers.
3. Educate and focus on the benefits. Unfamiliarity with advanced programs like VPPs and demand response can create hesitation among data center operators. Energy providers should focus on communicating practical benefits while directly addressing concerns about operational disruption. Emphasizing financial incentives, along with secondary benefits like improved community relations, grid stability, and opportunities to test operational flexibility in low-risk situations, can help build confidence in participation.
4. Adapt to evolving political and regulatory landscapes. The political and regulatory environment remains more in flux than ever before at global, national, and local levels. Successful deployment of data center load flexibility programs must recognize the uncertainty that follows such changes and ensure alignment with those shifts. Staying informed, leveraging incentives and mandates, and understanding localized needs will aid in keeping programs relevant and useful to data centers.
5. Provide solutions specific to data center needs. Load flexibility programs must align with the operational realities and priorities of data centers, rather than expecting them to adjust their operations to fit into the existing load flexibility program structures. Specific characteristics of successful deployment would include minimal disruption to existing practices, clear benefits to the business’s bottom line, direct and regular communication, and resilient operations.

The Outcome

Our findings informed a detailed strategic report for Uplight, outlining customer archetypes, engagement challenges, and actionable recommendations for increasing data center participation in load flexibility programs. The insights helped shape Uplight’s approach to product development and partnership strategy as they work to bring data centers into the future of grid-interactive energy solutions.