Google will provide demand response services leveraging machine learning (ML) capabilities at its data center in Fort Wayne, Indiana, under a new agreement with Indiana Michigan Power (I&M). The deal also includes a commitment to supply clean energy capacity to the utility.

Google signed a similar demand response agreement with the Tennessee Valley Authority (TVA), according to a news release.

According to filings with the Indiana Utility Regulatory Commission, the agreement includes two major components: a custom demand response program tailored to Google’s operational flexibility and a Clean Capacity Arrangement (CCA) under which Google will transfer accredited clean energy capacity to I&M.

Under the demand response portion of the contract, Google has agreed to curtail electricity use during peak demand periods by shifting non-urgent compute tasks — particularly machine learning — to lower-load times. These commitments begin with the next PJM Delivery Year and apply specifically to Google’s Fort Wayne facility.

“As AI adoption accelerates, we see a significant opportunity to expand our demand response toolkit, develop capabilities specifically for ML workloads, and leverage them to manage large new energy loads,” Google said in the release.

It added that the measure would allow large electricity loads like data centers to be interconnected more quickly.

Google will receive bill credits for load reductions, calculated based on actual curtailment performance. If Google fails to meet its commitment, the company must repay a portion of its annual credit.

I&M regulatory consultant Caleb Loveman testified that the program is designed to reduce I&M’s peak usage in an effort to reduce its PJM capacity obligation for Indiana retail load and that it will benefit I&M and all of its customers by reducing the cost of providing service through lower capacity and transmission costs. The Loveman testimony is heavily redacted, leaving out key details of the contract.

In tandem, Google will provide I&M with a fixed amount of accredited clean energy capacity, sourced from third-party generators and qualified under PJM’s resource adequacy rules. The contract ensures that capacity is credited to I&M’s annual Fixed Resource Requirement (FRR) plan. Google is responsible for any risks associated with CCA resources, including shortfalls, penalties, and resource accreditation performance, Loveman said.

Google will receive capacity credits based on I&M’s cost of capacity, and I&M proposes to recover all credits — both for the CCA and demand response — through its Resource Adequacy Rider, the utility’s existing mechanism for capacity-related cost recovery.

I&M emphasized the partnership as a model for long-term planning with large customers. “Google’s ability to leverage load flexibility as part of the strategy to serve their load will be a highly valuable tool,” said I&M President Steve Baker, as quoted in Google’s announcement.

The agreement awaits final approval from Indiana regulators.

TVA representatives did not respond to an email requesting further information.