Nissan has launched a vehicle-to-grid (V2G) pilot program in California's Silicon Valley area to help balance the electrical grid during times of peak demand, primarily due to the rapid rise in AI-driven data centers, an Interesting Engineering report shared.
The project is being headed by ChargeScape, a joint venture between BMW, Ford, Honda, and, more recently, Nissan, with a focus on integrating EVs into the power grid.
Leap, a leading platform for building and scaling virtual power plants, will handle the software portion of the project, while Fermata Energy manages the charging point technology that supports the bidirectional V2G services.
"AI is a fundamental component of American Dynamism, and our nation's power grids must quickly adapt to supply data centers with the energy needed to maintain America's competitive edge in places like Silicon Valley," said Joseph Vellone, CEO of ChargeScape, in a press release.
"Integrating Nissan's EV batteries into Silicon Valley Power's grid is a crucial first step to shoring up long-term grid reliability and rewarding the EV drivers who are part of the solution."
During this pilot project, EV batteries from Nissan electric vehicles will be used to export power to the grid during periods of high demand. In particular, ChargeScape will coordinate with Leap to free up supply for data center loads, the statement explained.
This follows Nissan's acquisition of a 25% stake in ChargeScape in 2024, and its subsequent test program that used second-life Leaf EV batteries to offset building power consumption at its U.S. headquarters in Tennessee.
It's all part of ChargeScape and Leap's broader California Virtual Power Plant program that offers compensation opportunities for EV owners and automakers.
Through smart charging (V1G), which reduces an EV's draw during grid stress events, and bidirectional power delivery that sends energy back into the grid, EVs can become an added revenue stream while increasing grid resiliency.
The whole operation is backed by the California Energy Commission's Demand Side Grid Support program Option 3 and is happening within the territory of regional utility Silicon Valley Power.
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Sign me up 👍 Silicon Valley is not only seeing increased data center activity in the area due to its proliferation of tech companies, but it's also one of the leading U.S. areas in EV adoption. Electric cars, pickups, and SUVs accounted for 40% of all new auto registrations in San Jose last year.
Building virtual power plants is just one of many novel solutions proposed to offset the dramatic rise in data centers, especially those running energy-intensive AI systems.
According to a report by Yale360, there are an estimated 9,000 to 11,000 cloud data centers worldwide, with more under construction. These are playing a major role in grid stress, as electricity demand for cooling and server operations skyrockets.
Many tech companies are working to reduce energy consumption and water use for these facilities, while also investing in renewable energy projects as an alternative to dirty fuels.
The use of EVs as components in a virtual power plant could have a positive impact on the electrical grid's resilience, and owners of EVs can benefit from the monetary incentives.
"Through this collaboration, we're showcasing how electric vehicles can reinforce our communities' electrical needs and deliver meaningful benefits to drivers," said Rich Miller, vice president of Vehicle Connected Services at Nissan U.S.
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