Indiana Michigan Power and Google file joint agreement to support grid reliability using demand response at Google’s Fort Wayne data center.
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| A new I&M–Google agreement introduces flexible energy use strategies for Google’s Fort Wayne data center, helping manage grid demand and reduce long-term energy costs. Image: CH |
Fort Wayne, United States – August 4, 2025:
Indiana Michigan Power (I&M), an American Electric Power company, has filed a joint contract with Google to implement a custom Demand Response (DR) structure aimed at enhancing energy reliability and efficiency for the growing Fort Wayne region. The agreement, submitted to the Indiana Utility Regulatory Commission (IURC) on July 30, outlines a strategic partnership to better manage peak electricity demand as Indiana experiences rapid economic development.
The collaboration allows Google’s forthcoming $2 billion data center in Fort Wayne to participate in I&M’s DR program—an energy strategy that reduces or shifts electricity usage during periods of high demand. This initiative mirrors similar DR programs already available to residential and commercial customers but is customized to fit the operational scale and technological requirements of a hyperscale data center.
According to I&M President and COO Steve Baker, this partnership represents a critical advancement in the utility’s long-term planning. “I&M is excited to partner with Google to enable demand response capabilities at their new data center in Fort Wayne. As we add large energy loads to our system, it’s vital that we work alongside those customers to balance 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,” Baker said.
Through this program, Google will use advanced energy management tools to delay or shift non-urgent computing tasks—such as machine learning model training—to off-peak hours, when demand on the power grid is lower. This not only helps I&M manage system reliability more efficiently but also reduces long-term generation costs, which ultimately benefits all of I&M’s customers.
Amanda Peterson Corio, Google’s Global Head of Data Center Energy, emphasized the importance of this collaboration in light of increasing energy demands from AI workloads. “As AI growth accelerates, we recognize the need to expand our demand response toolkit and develop capabilities specifically for machine learning workloads,” she said. “Working closely with I&M, we can support future power needs, even where generation and transmission are constrained. This is a vital tool for enabling responsible data center growth and maintaining our commitment to being a good grid citizen.”
Demand Response programs are designed to manage short-term electricity consumption during peak periods—typically weekday afternoons and evenings—when weather and usage patterns put stress on the grid. By temporarily reducing energy usage during these high-demand hours, utilities can avoid expensive and emissions-heavy generation practices while maintaining service reliability.
If approved by the IURC, the I&M–Google agreement would mark a significant commitment to sustainability and affordability. It reduces the need for new generation facilities, lowers peak energy consumption, and strengthens I&M’s ability to manage growth in demand from large-scale commercial and industrial users.
Google’s Fort Wayne data center, announced in April 2024, represents one of the largest private investments in Indiana’s history. The development is expected to bring both technological infrastructure and economic opportunity to the region, supporting local employment and contributing to the broader goal of sustainable innovation.
I&M, headquartered in Fort Wayne, serves more than 600,000 customers in Indiana and Michigan. In 2023, over 85% of the energy it delivered was emission-free. Its energy portfolio includes a diverse mix of nuclear, wind, hydro, solar, and coal-fueled generation sources, enabling it to meet evolving energy needs while continuing its transition toward a cleaner and more resilient energy future.