China turns data centers into virtual power plants in electricity trading first

China’s large-scale data centers have joined electricity spot trading as virtual power plants for the first time, marking a shift in how computing demand interacts with the grid, a report in an official media said.

Three data center clusters operated by China United Network Communications Group Co. and China Mobile Communications Group Co. in the southern province of Guangdong entered the spot market on May 14 via a Guangdong Power Grid Energy Investment Co. platform, China Electric Power News reported on Saturday. The system allows data centers to buy electricity based on real-time prices.

Under the model, computing workloads are shifted to periods of lower power demand and reduced during peak hours, turning data centers from fixed power users into flexible grid resources.

The arrangement can cut power costs and generate new revenue for data centers, while highlighting their potential role as flexible assets in China’s evolving power system, the report said. China Southern Power Grid Co. plans to expand data center participation in spot trading and further integrate electricity, carbon and computing systems to support growth, it added. Bloomberg