Hyperscale technology companies and data center developers face challenges in securing necessary power from utilities, which often cite significant delays for grid connections. Amit Narayan, CEO of Gridcare, highlighted that many AI data centers are struggling with this issue and are actively seeking solutions that may not align with their anticipated timelines.
To mitigate the power supply issues, some data centers are opting for “behind the meter” power sources, essentially constructing their own energy facilities, a costly strategy that underscores their urgent need for electricity. Narayan, who has extensive experience studying grid systems, believes there may be untapped capacity that utilities have yet to recognize. He poses the question of how more capacity can be created in a situation where many believe none exists.
Gridcare has reportedly identified locations with additional grid capacity and plans to facilitate connections between data centers and utilities. The company recently secured $13.5 million in seed funding, which was led by venture firms such as Xora and Temasek, along with various other investors.
The first phase of Gridcare’s operations involves mapping the existing grid and using generative AI to project potential future changes. Additional factors considered include fiber optic availability, natural gas, water access, extreme weather impacts, permitting constraints, and community feedback regarding data center developments.
Narayan states that there are numerous scenarios to analyze when assessing grid usage, and Gridcare ensures compliance with federal regulations when evaluating its findings. The company collaborates with data center developers to pinpoint their expansion needs, which aids in the matching process for available capacity.
Gridcare charges data center developers based on the megawatts of capacity it can unlock for them. In some cases, this may require data centers to briefly utilize on-site backup power instead of relying solely on grid power. The company anticipates that its methods could unlock over 100 gigawatts of additional capacity.
Source: https://techcrunch.com/2025/05/27/gridcare-thinks-more-than-100-gw-of-data-center-capacity-is-hiding-in-the-grid/