Project aims to explore how data centers can support the electric grid and enable better asset utilization
ING Capital LLC today announced it has joined the independent, non-profit energy R&D institute EPRI’s Data Center Flexible Load Initiative, known as “DCFlex”, becoming the first major financial institution to do so.
Amidst a backdrop of skyrocketing energy demand driven by digitalization and expansion of AI as well as electrification of transport and industry, the three-year initiative will establish flexibility hubs, demonstrating innovative data center and power supplier strategies that enable operational and deployment flexibility, streamline grid integration, and transition backup power solutions to grid assets. Demonstration deployments will begin in the first half of 2025, and testing is planned to run through 2027.
The initiative includes key stakeholders from across the tech and energy sectors, including Google, Meta, NVIDIA, Compass Data Centers, QTS Data Centers, Constellation Energy, Duke Energy, the Electric Reliability Council of Texas, the New York Power Authority, NRG Energy, Pacific Gas and Electric, PJM Interconnection, Portland General Electric, Southern Co. and Vistra, among others.
As the first financial institution member of DCFlex, ING brings unparalleled expertise as a leading provider of capital and advisory services to clients across the entire data center value chain.
“Globally, we are experiencing significant growth in electricity demand, driven by data centers, AI, increased electrification, and other factors,” said EPRI President and CEO Arshad Mansoor. “Flexible data center design and operation is a key strategy for accelerating AI development and realizing its benefits, while minimizing costs and enhancing system reliability,” he added.
Leading executives from ING’s Sustainable Solutions Group, TMT, and Energy teams added the following:
“The current data center power challenge presents a unique opportunity to explore innovative energy solutions that have applicability across a wide range of sectors and can significantly accelerate the global transition to a low-carbon economy. DCFlex brings together a unique group with the ambition and resources to move these solutions forward. We are excited to contribute to it and potentially support deployment beyond the work of the initiative itself.” said Cindy Jia, Head of Sustainable Solutions Group at ING Americas.
“We’ve seen advances in cooling solutions progressively help data centers become more energy efficient over the past decade, but as AI adoption rates increase, aggregate energy demand from data centers is expected to grow exponentially and grid capacity will become a constraint. Breaking through this bottleneck will require further improvements in data center design and operations, potentially leveraging AI as well, and collaboration among various parties in the chain.” said Ana Carolina Oliveira, Head of TMT at ING Americas.
“The rapid expansion of data centers is pushing us towards a pivotal moment for grid development as operators look to meet this unprecedented growth in a sustainable, affordable, and reliable way. As one of the major financiers of the renewable energy sector, we aim to create smarter financing solutions in tandem to mobilize private capital in building future-ready power systems.” said Wafaa Ermilate, Head of Energy at ING Americas.
To learn more about the EPRI DCFlex initiative, go to https://dcflex.epri.com/
About ING Capital LLC
ING Capital LLC is a financial services firm offering a full array of wholesale financial lending products and advisory services to its corporate and institutional clients. ING Capital LLC is an indirect U.S. subsidiary of ING Bank NV, part of ING Groep NV (NYSE: ING), a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 100 countries.
ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).
ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING's ESG rating by MSCI was reconfirmed by MSCI as 'AA' in August 2024 for the fifth year. As of December 2023, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. Our current ESG Risk Rating, is 17.2 (Low Risk). Please note that neither ING Groep NV nor ING Bank NV have a banking license in the U.S. and are therefore not permitted to conduct banking activities in the U.S.