# Data Center Demand Response Energy Management Market

> Data center demand response: USD 827.38 million in 2026, USD 2.76 billion by 2035, 19.04% CAGR from 2025, as PJM and Texas make large loads curtailable.

Publisher: DC Market Insights  
Author: Amit Jain, DC Market Insights  
Published: 2026-11-05  
Last updated: 2026-11-05  
Next review: May 2027  
Page: https://www.dcmarketinsights.com/report/data-center-demand-response-energy-management-market

## Key takeaways

- PJM Puts Unmatched Large Loads First in the Curtailment Queue From January 2026
- AI Training Clusters Throttle Instead of Shutting Down: 25% Less Power for 3 Hours in Phoenix
- Crypto Mining Earnings Swing With Texas Weather: Riot's Credits Fell 53% in 2024
- Flexible Interconnection Agreements Reach USD 773.54 million by 2035

**Frequently Asked Questions**

**What is the size of the Data Center Demand Response Energy Management Market in 2026?**

USD 827.38 million in 2026, up 71.17% from USD 483.36 million in 2025, according to DC Market Insights estimates. The market is projected to reach USD 2.76 billion by 2035, a CAGR of 19.04% from 2025.

**How fast is the Data Center Demand Response Energy Management Market growing?**

19.04% a year from 2025 to 2035, after 26.15% a year from 2020 to 2025, as enrolled flexible data center load rises from 6,000 MW to 43,000 MW (DC Market Insights estimate).

**How much does a data center earn from demand response?**

About USD 42,000 per enrolled MW-year in 2025 on average (DC Market Insights estimate). PJM capacity prices imply up to USD 121,700 per MW-year for 2027/2028, while Riot Platforms earned USD 56.7 million in 2025.

**Which component leads the Data Center Demand Response Energy Management Market?**

Demand Response and Grid Service Payments, with USD 252.00 million or 52.14% of 2025 value. Flexibility Orchestration Software grows fastest at 27.76% a year.

**How does Texas SB 6 affect data centers?**

Senate Bill 6 (2025) sets a 75 MW large-load threshold and lets ERCOT require those loads to curtail or run backup generation in emergencies. It also creates a service that buys demand reductions from large loads.

**What did PJM decide about data center curtailment?**

On 16 January 2026 the PJM board ruled that new large loads without matching new capacity are curtailed before pre-emergency demand response, so flexibility becomes part of the connection deal for new data centers.

**Which region leads the Data Center Demand Response Energy Management Market?**

North America, with USD 348.02 million or 72.00% of 2025 value. Asia Pacific grows fastest at 26.77% a year, and India is the fastest large country at 35.87%.

**Can AI data centers take part in demand response?**

Yes. In May 2025 Emerald AI software cut AI workload power on 256 NVIDIA GPUs by 25% for three hours in Phoenix, and Google reported 1 GW of data center demand response contracts by March 2026.

**Who are the leading companies in the Data Center Demand Response Energy Management Market?**

About 30% of 2025 value passes through Enel, Voltus and CPower (DC Market Insights estimate). Riot Platforms, Google, Emerald AI, NVIDIA, Eaton, Schneider Electric and Vertiv are also active.

**Why do Data Center Demand Response Energy Management Market estimates differ?**

The DC Market Insights figure of USD 827.38 million for 2026 counts only flexibility payments and enabling spend tied to data centers. Estimates that add battery hardware, all energy management systems or non-data-center demand response are larger.

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 483.36 | USD million |
| Revenue CAGR | 19.04 | % |
| Market size 2035 | 2,760 | USD million |

## Frequently asked questions

### What is the size of the Data Center Demand Response Energy Management Market in 2026?

USD 827.38 million in 2026, up 71.17% from USD 483.36 million in 2025, according to DC Market Insights estimates. The market is projected to reach USD 2.76 billion by 2035, a CAGR of 19.04% from 2025.

### How fast is the Data Center Demand Response Energy Management Market growing?

19.04% a year from 2025 to 2035, after 26.15% a year from 2020 to 2025, as enrolled flexible data center load rises from 6,000 MW to 43,000 MW (DC Market Insights estimate).

### How much does a data center earn from demand response?

About USD 42,000 per enrolled MW-year in 2025 on average (DC Market Insights estimate). PJM capacity prices imply up to USD 121,700 per MW-year for 2027/2028, while Riot Platforms earned USD 56.7 million in 2025.

### Which component leads the Data Center Demand Response Energy Management Market?

Demand Response and Grid Service Payments, with USD 252.00 million or 52.14% of 2025 value. Flexibility Orchestration Software grows fastest at 27.76% a year.

### How does Texas SB 6 affect data centers?

Senate Bill 6 (2025) sets a 75 MW large-load threshold and lets ERCOT require those loads to curtail or run backup generation in emergencies. It also creates a service that buys demand reductions from large loads.

### What did PJM decide about data center curtailment?

On 16 January 2026 the PJM board ruled that new large loads without matching new capacity are curtailed before pre-emergency demand response, so flexibility becomes part of the connection deal for new data centers.

### Which region leads the Data Center Demand Response Energy Management Market?

North America, with USD 348.02 million or 72.00% of 2025 value. Asia Pacific grows fastest at 26.77% a year, and India is the fastest large country at 35.87%.

### Can AI data centers take part in demand response?

Yes. In May 2025 Emerald AI software cut AI workload power on 256 NVIDIA GPUs by 25% for three hours in Phoenix, and Google reported 1 GW of data center demand response contracts by March 2026.

### Who are the leading companies in the Data Center Demand Response Energy Management Market?

About 30% of 2025 value passes through Enel, Voltus and CPower (DC Market Insights estimate). Riot Platforms, Google, Emerald AI, NVIDIA, Eaton, Schneider Electric and Vertiv are also active.

### Why do Data Center Demand Response Energy Management Market estimates differ?

The DC Market Insights figure of USD 827.38 million for 2026 counts only flexibility payments and enabling spend tied to data centers. Estimates that add battery hardware, all energy management systems or non-data-center demand response are larger.

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "Data Center Demand Response Energy Management Market", updated 2026-11-05, https://www.dcmarketinsights.com/report/data-center-demand-response-energy-management-market
