en.Wedoany.com Reported - Kraken Technologies has partnered with Schneider Electric to address grid capacity challenges through software and AI solutions, avoiding large-scale infrastructure upgrades. This collaboration aims to manage electricity demand more efficiently, alleviating grid pressures from data centers, cloud computing, and AI deployments.
According to the partnership announcement, global data center electricity demand reached approximately 415 terawatt-hours in 2024, a scale comparable to the UK's total annual electricity consumption, and could double by 2030. The surge in demand is primarily driven by the expansion of cloud computing, cryptocurrency mining operations, and the rapid deployment of AI systems. Schneider Electric and Kraken Technologies will leverage software and AI to unlock additional capacity from existing grids, bypassing the need to wait for physical grid infrastructure upgrades. Traditional capacity expansion methods rely on adding cables and substations, which can take years and require billions of dollars in capital expenditure, whereas software-based solutions can be deployed within months, helping grid operators identify bottlenecks, predict demand patterns, and coordinate distributed energy resources in real time.
Schneider Electric provides real-time network monitoring through its One Digital Grid Platform and EcoStruxure suite, enabling the identification of distribution issues and management of flexible loads. Kraken Technologies offers AI capabilities for coordinating energy assets, with its platform managing devices such as electric vehicles, batteries, and heat pumps, adjusting power consumption to balance supply and demand. AI algorithms learn consumption patterns and automatically adjust device charging schedules without impacting user experience. The joint product targets utility companies and grid operators, aiming to provide low-voltage network visibility and congestion management tools. Schneider Electric notes that the annual value of demand-side flexibility in the global industrial and commercial sectors could reach $1 trillion.
Frédéric Godemel, Executive Vice President of Energy Management at Schneider Electric, stated: "Utilities and grid operators face immense pressure to maintain reliability while dealing with aging infrastructure, adapting to changing demand, and leveraging better data to make smarter decisions." He added that the goal of the partnership is to create an interoperable energy system that works seamlessly together. Amir Orad, CEO of Kraken Technologies, pointed out that AI is not only a driver of demand but also a means to transform how grid capacity is accessed, with the collaboration aiming to build a more resilient, affordable, and cleaner energy system for consumers and the planet. Originally the proprietary operations platform of Octopus Energy, Kraken Technologies was spun off as a fully independent company last year by Greg Jackson and colleagues, and now serves energy retailers and grid operators across multiple continents. This partnership demonstrates an attempt to use software-driven demand management as an alternative to physical infrastructure expansion.
