Gridcare Claims Over 100 GW of Data Center Capacity Hidden in Existing Grid

Data center developers and hyperscalers are facing a significant challenge: the pressing need for increased computing power clashes with the lengthy grid connection timelines cited by utilities. According to Amit Narayan, founder and CEO of Gridcare, “All the AI data centers are struggling to get connected. They’re so desperate. They are looking for solutions, which may or may not happen. Certainly not in the five-year timelines they cite.”

This situation has pushed many data centers to explore “behind the meter” power sources, essentially building their own power plants – a costly solution indicative of their urgent need for electricity. However, Narayan believes there is considerable untapped capacity within the existing grid, often overlooked by utilities. Drawing on 15 years of grid study, first as a Stanford researcher and later as a company founder, Narayan poses the question: “How do we create more capacity when everyone thinks that there is no capacity on the grid?”

Gridcare, emerging from stealth mode, asserts it has identified locations with spare capacity and is poised to connect data centers with utilities. The company recently secured an oversubscribed $13.5 million seed round led by Xora, Temasek’s deep tech venture firm, with participation from Acclimate Ventures, Aina Climate AI Ventures, Breakthrough Energy Discovery, Clearvision, Clocktower Ventures, Overture Ventures, Sherpalo Ventures, and WovenEarth.

Gridcare’s approach involves mapping the existing grid and using generative AI to forecast potential changes. This analysis incorporates factors such as fiber optic availability, natural gas, water resources, extreme weather patterns, permitting processes, and community sentiment related to data center construction. Narayan notes the complexity of the process: “There are 200,000-plus scenarios that you have to consider every time you’re running this study.”

To ensure regulatory compliance, Gridcare cross-references its findings with federal guidelines on grid usage. Once a viable location is identified, the company engages with the relevant utility to validate the data. “We’ll find out where the maximum bang for the buck is,” Narayan states.

Simultaneously, Gridcare collaborates with hyperscalers and data center developers to understand their expansion plans and operational parameters. This matchmaking process involves charging data center developers a fee based on the megawatts of capacity Gridcare unlocks. According to Narayan, this fee is “significant for us, but it’s negligible for data centers.”

Solutions may involve data centers using on-site backup power temporarily or supporting new grid-scale battery installations. Utilities are also exploring auctioning access to newly discovered capacity. Narayan estimates that Gridcare’s approach could unlock over 100 gigawatts of capacity. “We don’t have to solve nuclear fusion to do this,” he concludes.

Gridcare sells its services to data center developers, charging them a fee based on how many megawatts of capacity the startup can unlock for them. “That fee is significant for us, but it’s negligible for data centers,” Narayan said.

For some data centers, the price of admission might be forgoing grid power for a few hours here and there, relying on on-site backup power instead. For others, the path might be clearer if their demand helps green light a new grid-scale battery installation nearby. In the future, the winner might be the developer that is willing to pay more. Utilities have already approached Gridcare inquiring about auctioning access to newfound capacity.

Regardless of how it happens, Narayan thinks that Gridcare can unlock more than 100 gigawatts of capacity using its approach. “We don’t have to solve nuclear fusion to do this,” he said.

Update: Corrected spare capacity on the grid to gigawatts from megawatts.