Does AI Hold the Key to Modernising the UK's National Grid?
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Published Time: 2025-09-17T14:30:00Z
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Data & Analytics
Does AI Hold the Key to Modernising the UK's National Grid?
September 17, 2025
3 mins
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The UK's National Grid is currently undergoing what insiders call the 'Great Grid Revamp'
The National Grid & Emerald AI are demonstrating how AI can optimise data centre energy consumption while maintaining computing power across networks
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PowerEnergyGridUKData CentresData Centers
The National Grid, the nationwide organisation responsible for the running and maintenance of the UK's electricity, has announced that it is teaming up with a tech start-up by the name of Emerald AI.
The two have formed a partnership which centres wholly on showcasing the ways in which AI can help data centres to dynamically adjust their energy consumption, while also maintaining optimal computing performance all the while.
With this endeavour, the National Grid is hoping it will be able to fully optimise its existing grid infrastructure while also addressing the UK's increasing demand for digital and AI computing services.
Following this week's news that US tech giants Google, Microsoft and Nvidia are all investing in the UK's AI future, the announcement of this initiative couldn't come at a more appropriate time.
The potential of AI-powered energy management
The partnership will launch a live trial in late 2025, featuring a grid-connected data centre equipped with Emerald AI's platform, Emerald Conductor, working alongside NVIDIA GPUs.
The trial will demonstrate how AI can help data centres adapt their energy usage during peak demand periods.
"AI infrastructure doesn't have to be a burden on the grid – it can be a critical asset," says Varun Sivaram, Founder and Chief Executive Officer of Emerald AI.
The Emerald Conductor platform serves as an intelligent intermediary between data centres and the power grid, using AI algorithms to coordinate computing activities with grid conditions.
The system can temporarily reduce consumption during high-demand periods, such as extreme weather events when cooling and heating requirements peak.
Varun Sivaram, CEO of Emerald AI (Credit: Emerald AI)
Inside a new age of smart grid systems
The initiative demonstrates how AI-powered data centres can contribute to grid stability while maintaining critical operations.
By intelligently shifting workloads in real-time, the system can help manage grid capacity more effectively, potentially reducing the need for additional infrastructure investments.
"As the UK's digital economy grows, unlocking new ways to flexibly manage energy use is essential for connecting more data centres to our network efficiently," says Steve Smith, Chief Strategy and Regulation Officer at National Grid.
The partnership with Emerald AI is providing National Grid with evidence that data centres can actively participate in balancing electricity demand.
This approach enables more efficient use of existing grid infrastructure while supporting the expansion of advanced computing capabilities.
Steve Smith, Chief Strategy and Regulation Officer at National Grid
The road to implementation
The trial aims to establish technical standards for AI data centre flexibility and create a blueprint for future implementations.
The companies plan to work with customers across the UK's growing data centre sector and encourage broader industry participation through the NextGrid Alliance.
National Grid Partners has made a strategic investment in Emerald AI, demonstrating its long-term commitment to the collaboration. The 2025 demonstration will illustrate how UK AI workloads can be adjusted in real-time to support grid stability.
"Together with National Grid, we're proving that flexible AI Factories can accelerate AI innovation in the UK while enhancing reliability and affordability for everyone connected to the grid," Sivaram says.
The partnership establishes a framework for integrating energy and digital infrastructure, aiming to enhance reliability, reduce costs and support the UK's clean energy transition while ensuring data centres continue to power economic growth.
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