'Virtual power plant': Israeli startup aims to solve data centers' energy crisis

nGrid, an Israeli energy management company, is addressing the anticipated energy crisis driven by AI data centers and the shift to renewable energy. CEO Omer Kriger explained that their AI software creates "virtual power plants" by managing electricity consumption and battery usage at industrial and commercial sites. The system optimizes energy use from local sources like solar panels and batteries, responding to real-time electricity price fluctuations. Kriger stated, "The value actually stems from the gaps between supply and demand." The software integrates with existing infrastructure and can adapt to various battery models, requiring minimal new hardware. It operates with both local and cloud-based layers to manage electricity flow across a network of sites, aiming to provide flexible consumption and reduce costs for clients while maximizing renewable energy utilization. Kriger emphasized that such systems are crucial for Israel's energy future, especially as a "power island" unable to rely on neighboring grids.