EP.177 Michael Terrell, Sr. Director for Energy and Climate, Google
Jan 25, 2024
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Michael Terrell, Senior Director for Energy and Climate at Google, discusses power consumption of data centers, achieving Google's 24/7 carbon-free energy goal, upcoming policy developments, and potential carbon reduction solutions.
Google aims to source 24/7 carbon-free energy on every grid where it operates by matching consumption with clean local power on an hourly basis.
Google focuses on market design, flexible demand, and generation technologies to address the challenge of matching data center energy consumption with clean power on a 24/7 basis.
Deep dives
Google's Commitment to 24/7 Carbon-Free Energy
Google has set ambitious goals to match its electricity consumption with zero-carbon sources 24/7. This commitment started in 2012 with a goal of 100% annual power demand from zero-carbon sources. In 2017, Google achieved this goal and has been consistently reaching it every year since then. In 2020, they set an even more challenging goal to source 24/7 carbon-free energy on every grid where Google operates, aiming for hourly matching of consumption with clean local power. Google's approach focuses on procurement, technology, and policy to transform electricity grids and achieve their goals.
The Impact of Data Centers on Power Consumption
Data centers are essential for powering digital services like Google Cloud, Search, and Maps. However, they consume significant amounts of power. Google's data centers range from single-digit to hundreds of megawatts in energy use. While historically, data centers have accounted for a portion of electricity consumption, the rise of AI and machine learning models has increased their demand. Google is working to optimize energy usage and improve energy efficiency in its data centers to reduce carbon emissions.
Balancing Demand and Clean Energy Supply
Matching Google's data center energy consumption with clean power on a 24/7 basis faces challenges. Google addresses this issue by focusing on three areas: market design, flexible demand, and generation technologies. Regional market design can better manage the variability of renewable energy sources like wind and solar. Google's carbon intelligent computing program shifts compute loads to times and locations where cleaner energy is available on the grid. Additionally, the use of firm, dispatchable technologies such as geothermal and advanced nuclear power can help address the variability of renewable energy sources.
Google's Three Levers for Grid Transformation
Google recognizes three levers for grid transformation: procurement, technology, and policy. Procurement involves crafting deals with utilities or energy sellers, adopting a portfolio approach. Technology advancement is crucial, with Google exploring advanced carbon-free energy technologies to complement wind, solar, and lithium-ion storage. Policy plays a significant role, driving grid transformation through regulatory intervention, market design improvements, and voluntary signals. Google emphasizes the need for utility tariffs and accounting systems that value and verify the impact of clean energy technologies accurately.
On this episode of Energy Unplugged, we are delighted to welcome Michael Terrell, Senior Director for Energy and Climate, Google, for a discussion with Oliver Kerr, our Head of North America, focusing on “the 24/7 goal”.
Michael leads Google’s efforts to decarbonise its global operations and value chain. In his previous role as Global Director of Energy, he spearheaded the company’s commitment to operate on 24/7 carbon free energy by 2030. Additionally, Michael serves as Board Chair of the Clean Energy Buyers Alliance (CEBA), which he co-founded in 2018. Prior to joining Google, he served in the US government, including at the White House Council on Environmental Quality.
Main topics include the following:
• Power consumption of data centres and the role of machine learning and flexibility • What does the 24/7 goal mean and what are the pros and cons associated with making it achievable? • Insights into upcoming developments on the policy side of the energy landscape