Israeli startup nGrid offers AI solution to data center energy crisis

As artificial intelligence data centers surge in demand, a looming energy crisis threatens both Israel and the world. However, Israeli startup nGrid believes its AI-powered energy management software offers a solution.

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Renewables, like solar or wind power, are not like fossil fuels. They are constantly changing, offering varying levels of power depending on external factors such as weather or time of day. So we aim to give our clients a tool that allows them to have flexible consumption, saves them money, and has them using the most out of these energy sources.

Omer Kriger, CEO and Co-founder of nGrid, explained that the company's software is designed to give consumers greater flexibility in their energy consumption, a crucial need as the world shifts from fossil fuels to variable renewable sources like solar and wind power. "Renewables... are not like fossil fuels. They are constantly changing, offering varying levels of power depending on external factors such as weather or time of day," Kriger stated.

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The value actually stems from the gaps between supply and demand. Gaps between supply and demand are ridiculously volatile in a way, with prices of electricity going from several hundred dollars per megawatt hour all the way to negative numbers.

The AI software manages electricity consumption and battery usage, primarily for industrial and commercial sites. It works by intelligently controlling batteries and local energy sources, deciding when to charge batteries and when to draw from stored energy instead of the grid. This is particularly valuable because electricity prices can fluctuate dramatically, sometimes even becoming negative. "The value actually stems from the gaps between supply and demand. Gaps between supply and demand are ridiculously volatile in a way, with prices of electricity going from several hundred dollars per megawatt hour all the way to negative numbers," Kriger said.

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So, sometimes companies are willing to pay you to increase your consumption because, for example, there's not enough demand during a windy season or when there is a lot of sun now, and it always needs to be balanced. So on the same day, that kind of fluctuation is happening.

While nGrid does not manufacture batteries, its software can adapt to various existing models. The company emphasizes that its solution requires minimal hardware, acting as an optimization layer within current facilities. This approach allows clients to benefit from improved energy management and cost savings without needing to overhaul their existing infrastructure.

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The only thing that we need is an asset that can turn the electricity consumption into something more flexible. I need to have something that I can manage and control, and our clients get a return for that.