Silicon Valley Power, a municipal utility serving 55 data centers across 20 square miles, faces capacity constraints from AI growth. Major customers like Nvidia and Intel are driving demand that outpaces the utility's ability to expand. To mitigate this, the utility partnered with Emerald AI, a two-year-old start-up developing software to make data centers more grid-flexible.

Emerald AI recently secured $150 million in funding, achieving a $1.05 billion valuation led by DCVC and Energize Capital. Nvidia, Samsung Ventures, GE Vernova, and Salesforce Ventures also participated, with early investors including John Kerry and Google veteran Jeff Dean. The company, founded by Varun Sivaram and led by Chief Scientist Ayse Coskun, uses AI agents to autonomously manage power consumption.

Data centers can reduce energy use when requested by utilities and tap excess capacity otherwise. Emerald generates revenue by taking a cut of extra power sales facilitated by its efficiency optimization. The software has been tested at five data centers, including partners Nvidia and Oracle, and the company now has contracts in California and Virginia.

Founder Varun Sivaram aims to transform data centers from villains into heroes by making them more grid-flexible.