Google has entered into agreements with two U.S. electric utilities that aim to reduce the stress on the power grid caused by the tech giant’s data centres. As per the agreement, Google has committed to decreasing its electricity consumption during periods of high demand of electricity for general utilities. Data centres belonging to Big Tech companies are reportedly overwhelming national utilities with electricity demands, with some regions experiencing demand that outstrips available power supplies.

Google happens to be the first major tech company to sign such an agreement.

A limited supply of available power for utilities has raised nationwide concerns about potential increase in electricity bills for households and businesses. According to officials, these power constraints also create challenges for the tech industry's growth in Artificial Intelligence, which depends on a steady and significant supply of electricity.

Google’s agreements with Indiana Michigan Power and Tennessee Power Authority would involve scaling back power use at the company’s data centres when requested by the authorities to free up space on the grid for general electric utilities.

“This move enables large electricity loads like data centres to be interconnected with grids more quickly whilst reducing the need to build new transmission and power plants,” Google posted in a blog on Tuesday.

“This initiative will further assist grid operators in efficiently managing power grids,” the Tech giant mentioned in their statement.