Your Next AI Query May Travel Where the Power Is

Overview

To cope with power-hungry data centers, Nvidia and partners plan a pilot that builds small data centers next to utility substations and operates them as one coordinated fleet, shifting computation based on power availability. They plan about 25 micro data centers, each 5 to 20 megawatts, across five U.S. utilities later this year. The approach taps spare capacity at substations and lets developers secure scarce grid power in small chunks while building energy flexibility into AI compute.

Key Takeaways

Nvidia and partners plan micro data centers next to utility substations, operated as one coordinated fleet.
The pilot calls for about 25 small data centers, each 5 to 20 megawatts, across five U.S. utilities later this year.
Compute shifts to substations with spare capacity during overloads or outages.
Partners include InfraPartners, Prologis, and the nonprofit EPRI.
There are 55,000 substations in the U.S., and spare capacity at each adds up quickly.
U.S. grids use only about 53 percent of generation capacity on average, leaving headroom for flexible loads.

Stats & Key Facts

#About 25 micro data centers planned
#5 to 20 megawatts each
#Across 5 U.S. utilities
#55,000 substations in the U.S.
#Data centers could consume 9 to 17 percent of U.S. electricity generation by 2030
#U.S. grids use about 53 percent of generation capacity on average

Your Next AI Query May Travel Where the Power Is

The pilot project

Nvidia and partners plan a coordinated fleet of micro data centers.

›They plan to build about 25 small data centers later this year.
›Each ranges from 5 to 20 megawatts.
›They will be located across five utilities in the United States.

If one substation is overloaded with power demand or has an outage, the compute shifts to a different data center near a substation with spare capacity. The project aims to make data centers more flexible and to help developers quickly secure grid power, even in small chunks.

The partners

Several organizations are collaborating on the fleet.

›Nvidia is partnering with data center builder InfraPartners.
›Real estate service provider Prologis is involved.
›The nonprofit EPRI, formerly the Electric Power Research Institute, is a partner.

Why small substations add up

Spare capacity at many substations becomes useful when pooled.

›EPRI's Ben Sooter said on average about 5 MW is nominally available at individual substations, up to a max of 20 MW.
›That is too small to interest most operators alone, but operating several as one is useful.
›Shifting compute from overburdened substations to those with headroom can double the overall available power.

Nvidia's Marc Spieler noted there are 55,000 substations in the U.S., and if each has 5, 10, or 20 MW of spare capacity, that number adds up quickly.

The scale of data center power demand

AI growth is straining the grid.

›Half of all new U.S. data centers are being built in the United States.
›Data centers could consume 9 to 17 percent of U.S. electricity generation by 2030, more than double current use.
›Facilities that train AI models are built at gigawatt scale, drawing power like a midsize U.S. city.

Because grid connections can take up to a decade to approve, some developers are building their own gas power plants on site, paying for new transmission, or investing in fusion and next-generation nuclear fission startups.

Spare capacity on the grid

Most grid capacity sits idle outside peak periods.

›U.S. grid operators use only about 53 percent of generation capacity on average, per a 2025 Duke University report.
›Supply was built to meet peak demand, such as the hottest summer days.
›Peak loads can be almost double a mild-day load and typically occur for less than 200 hours a year.

If AI data centers reduce or shift power use during peak demand, building on-site generation may not always be necessary, and U.S. grids could provide an additional 76 GW.

Frequently Asked Questions

What is the Nvidia pilot project?

Nvidia and partners plan to build about 25 micro data centers, each 5 to 20 megawatts, next to utility substations across five U.S. utilities later this year, operating them as one coordinated fleet that shifts compute based on power availability.

Who is partnering with Nvidia?

Nvidia is partnering with data center builder InfraPartners, real estate service provider Prologis, and the nonprofit EPRI, formerly the Electric Power Research Institute.

Why build many small data centers instead of one large one?

Individual substations typically have only about 5 MW spare, up to 20 MW, which is too small alone, but operating several as one and shifting compute to substations with headroom can double the overall available power.

How much electricity could data centers use by 2030?

Per EPRI estimates, data centers could consume 9 to 17 percent of U.S. electricity generation by 2030, more than double current use.

How much spare capacity exists on U.S. grids?

U.S. grid operators use only about 53 percent of generation capacity on average, since supply was built for peak demand that occurs for less than 200 hours a year, and grids could provide an additional 76 GW.

The pilot tests whether shifting compute toward available power can ease the grid strain of AI data centers.