PG&E Tackles Energy Demand With AI and Grid-Edge Computing

As energy demand grows due to the rapid adoption of electric vehicles and data center expansions, utilities face mounting pressure to modernize infrastructure without compromising reliability or sustainability. Traditional solutions, such as costly panel upgrades for home EV chargers and fossil-fuel-reliant data centers, are proving inadequate to meet goals of accessibility and environmental responsibility.

Pacific Gas and Electric (PG&E) has released two initiatives to address these challenges. The first is an EV charging pilot leveraging grid-edge computing to enable real-time load management, reducing charger installations’ cost and complexity. The second is a plan for a 200 MW net-zero data center community in San Jose, integrating renewable energy and resource-efficient technologies to support AI-driven operations while serving residential needs.

How does distributed intelligence edge computing aid EV charging? Image used courtesy of Adobe Stock

Real-Time Load Management for EV Charging

For homeowners with 100-amp electrical panels, adopting Level 2 EV charging often comes with significant hurdles. A Level 2 charger, up to 15 times faster than a standard outlet, can fully charge an all-electric vehicle overnight, making it essential for convenient and practical EV ownership. However, Level 2 chargers typically require 200-amp service, creating a barrier for about half of the homes in PG&E’s service area still relying on 100-amp panels. Upgrading to a 200-amp panel can cost thousands of dollars and take months, making EV adoption less accessible to many customers.

PG&E’s pilot program, in collaboration with Itron, offers an innovative solution. The program enables real-time communication between EV chargers and the grid using Itron Riva meters with distributed intelligence edge computing. This technology allows homeowners to install Level 2 chargers without upgrading their panels, as the system ensures that charging loads stay within safe limits for the home’s electrical service and the power grid.

Set to launch in early 2025, the program will initially support up to 1,000 users, with plans for broader availability later in the year. With this approach, PG&E removes financial and logistical barriers to EV adoption while maintaining grid reliability.

A Net-Zero Vision for Data Centers

PG&E also released plans for a 200 MW net-zero data center community in downtown San Jose, developed in partnership with real estate company Westbank. The proposal includes three data centers and approximately 4,000 residential units connected by a district energy system.

This energy system will repurpose excess heat from data centers to provide heating and hot water to neighboring buildings. By optimizing the data centers’ electricity use, the district energy system aims to enhance the community’s overall energy.

Rendering of data center project in San Jose. Image used courtesy of PG&E

The project reflects PG&E’s proactive strategy to address the rapid growth of data center energy demand. Between now and 2029, PG&E anticipates a 3.5 GW increase in capacity requests from data centers across its service area, with almost half—approximately 1,635 MW—concentrated in San Jose. This surge underscores the pressing need for innovative solutions to balance energy reliability and sustainability while accommodating the needs of major tech companies like Microsoft, Google, and Amazon.

Collaboration and Innovation Drive Results

These initiatives showcase how partnerships enable innovative solutions to energy challenges. PG&E’s collaboration with Itron lowers barriers to EV adoption, while its work with Westbank demonstrates sustainable approaches to integrating data centers into urban environments.