Voltus and Octopus Energy US Forge VPP Alliance to Tackle Surging Data Center Power Demand
February 3, 2026
The rapid expansion of artificial intelligence and cloud computing is placing unprecedented strain on North America's power grids, with data center electricity demand projected to double by 2030. This challenge has catalyzed a strategic partnership between two key players in the energy flexibility market, aiming to unlock new capacity and accelerate the clean energy transition. US-based virtual power plant (VPP) operator Voltus has announced a partnership with Octopus Energy US to develop and deploy large-scale flexible capacity portfolios. The collaboration is designed to serve utilities, grid operators, and crucially, data center developers facing lengthy interconnection queues and power constraints. The alliance will combine Voltus's distributed energy resource (DER) platform, which currently manages over 7.5 gigawatts of capacity across all nine North American wholesale markets, with Octopus's consumer engagement and optimization technology for residential devices. The initiative will be rolled out across major US grids, including PJM, MISO, New York, and California. In its first phase, commencing this year, Octopus will aggregate flexible capacity from millions of residential smart thermostats, electric vehicles, and home batteries. Voltus will integrate this residential capacity into its commercial VPP portfolios, creating a more robust and diversified resource for the grid. Simultaneously, Voltus will offer its commercial customers, including data center operators, the opportunity to participate in Octopus's residential VPP programs. Executives from both companies framed the partnership as a critical response to grid modernization needs. "Octopus understands that load flexibility is the fastest to deploy form of capacity," said Dana Guernsey, CEO of Voltus. "By combining our platforms and customer relationships, we can deploy VPPs at the accelerated scale and speed that is needed to meet today’s load growth needs." Nick Chaset, CEO of Octopus US, highlighted the commercial and environmental imperative, stating, "The clean energy transition is creating an urgent, multi-billion dollar opportunity for demand side flexibility... By combining the unique, complementary strengths of Octopus Energy and Voltus, we can move faster to deliver flexibility at the scale the grid needs." For the data center industry, this partnership represents a tangible pathway to address one of its most pressing bottlenecks: access to reliable, timely power. Voltus's 'Bring Your Own Capacity' (BYOC) solution, launched in late 2025, is central to this effort. It allows data center developers to leverage existing grid flexibility as an alternative or supplement to traditional interconnection, potentially shaving years off development timelines. This model, now supercharged by Octopus's vast residential network, could provide a scalable blueprint for supporting data center growth while enhancing grid stability and integrating more renewable energy.
Source: datacenterdynamics
