Virtual Power Plant Top 10 US Projects: Tesla 16 GW VPP and 1 GW Deal (2024 to 2026)

An analysis of commercial activity from 2024 to 2026 reveals that Virtual Power Plants (VPPs) are rapidly scaling in the United States, evolving from regional utility programs into national, gigawatt-scale initiatives. This acceleration is driven by the urgent need to provide flexible, dispatchable capacity for the immense power demands of AI and data centers. Key projects underscore this trend, including a landmark 16, 000 MW national VPP partnership between Tesla, Sunrun, and Renew Home and a first-of-its-kind deal where Google will fund 100 MW of new capacity annually. The dominant theme for 2025 is the formalization of VPPs as a core strategy for both utilities and hyperscalers, with new programs in Texas and Georgia explicitly designed to manage data center load growth.

1. Tesla, Sunrun, and Renew Home National VPP

Participants: Tesla, Sunrun, and Renew Home
Capacity: 16, 000 MW (16 GW)
Details: Announced in 2026, this national project aggregates home batteries and smart thermostats to create the largest VPP in the U.S. Its explicit goal is to provide dispatchable capacity to serve massive load growth from data centers, potentially freeing up enough power for 17 large facilities.
Source: Tesla, Sunrun team up on 16 GW virtual power plant for …

2. CAISO VPP

Participants: CAISO (California’s grid operator)
Capacity: 515 MW
Details: As of March 2026, CAISO operates the largest active VPP in the nation, providing capacity equivalent to a nuclear power plant. The program is considered a model for other states scaling VPPs to manage grid stability amid rising demand from sources like data centers.
Source: Jigar Shah sees virtual power plants as the fastest way for …

3. Portland General Electric (PGE) VPP

Participants: Portland General Electric (PGE)
Capacity: 350 MW
Details: PGE’s VPP portfolio, which includes rooftop solar and demand response, is considered complementary to serving the surge of large data center loads in its Oregon service territory. This capacity helps manage infrastructure constraints without new large-scale generation.
Source: Exploring the Energy Transition: Data Centers Surge Into …

4. Google and Voltus PJM VPP

Participants: Google and Voltus
Capacity: 100 MW per year
Details: In a first-of-its-kind deal announced in 2026, Google will fund up to 100 MW of distributed energy resource capacity annually for three years in the PJM grid. This allows Google’s data centers to source accredited capacity from a network of smart devices as a non-wires alternative.
Source: Google to fund 100-MW virtual power plant in PJM in ‘first- …

5. NRG Energy and Renew Home Texas VPP

Participants: NRG Energy and Renew Home
Capacity: 1, 000 MW (1 GW)
Details: This planned VPP, mentioned in 2025, will create a gigawatt-scale flexible resource by aggregating thousands of smart thermostats in Texas. It is seen as a critical tool for managing grid strain in a state expecting its data center capacity to exceed 40 GW by 2028.
Source: Why virtual power plants are struggling to scale

6. Arizona Public Service (APS) VPP

Participants: Arizona Public Service (APS)
Capacity: 145 MW
Details: As of 2025, APS operates a 145 MW VPP sourced from over 83, 000 smart thermostats. This program provides essential grid flexibility in a state experiencing significant data center development and corresponding load growth.
Source: Virtual Power Plants: The $10 Billion Opportunity Reshaping …

7. Green Mountain Power (GMP) VPP

Participants: Green Mountain Power (GMP) and partners
Capacity: 50 MW
Details: Frequently cited as a successful model for leveraging distributed assets, GMP’s VPP efficiently dispatches resources to support the Vermont grid. This strategy is increasingly relevant for handling new, concentrated loads from data centers.
Source: How Virtual Power Plants Are Making the Grid More …

8. Georgia Power Pilot VPP

Participants: Georgia Power
Capacity: Not specified
Details: Approved in July 2025, this pilot program was established as part of a broader energy plan explicitly designed to meet anticipated data center demand in Georgia, exploring alternatives to new fossil fuel generation.
Source: Georgia Public Service Commission approves astonishing …

9. National Grid’s Connected Solutions Program

Participants: National Grid
Capacity: Not specified
Details: Highlighted as a prime example of rapid, utility-led VPP deployment, this program in the Northeast U.S. launched in under four months. It demonstrates a scalable model for bringing flexible capacity online to address challenges like data center load growth.
Source: VPP adoption is growing in the US, but not nearly fast …

10. Enel X and Google Global VPP

Participants: Enel X and Google
Capacity: 1, 000 MW (1 GW)
Details: Announced in September 2024, this global partnership pools flexible load from Google’s data centers to create one of the largest corporate VPPs. The initiative sets a precedent for how hyperscalers can actively participate in grid stabilization.
Source: Virtual Power Plant (VPP) Market Size & Share Analysis

Table: Top 10 US Virtual Power Plant Projects (2024-2026)

16, 000 MW, Google and PGE Drive Corporate and Utility VPP Adoption

The range of VPP applications has expanded significantly, signaling broad industry adoption beyond traditional utility demand response programs. The data shows two parallel tracks gaining momentum: direct corporate participation and utility-led data center mitigation. On the corporate side, Google’s partnerships with Enel X (1, 000 MW globally) and Voltus (100 MW annually in PJM) establish a new model where a hyperscaler actively builds or procures VPP capacity to serve its own needs and support the grid. Simultaneously, utilities are integrating VPPs into their core infrastructure planning. Portland General Electric now views its 350 MW VPP as “very much complementary” to serving data center loads, while Georgia Power’s 2025 pilot was created as part of a formal plan to manage the data center boom. This diversity of participants—from tech giants to utilities and residential energy firms—implies that VPPs are becoming an accepted, mainstream solution for grid management.

US Grid Strain, CAISO and PJM Lead VPP Deployment for Data Centers

Geographic trends in VPP deployment are closely tied to regions with both high concentrations of data centers and significant grid constraints. California, through CAISO’s 515 MW program, has established the most mature, large-scale VPP, providing a “playbook” for other states. The PJM Interconnection, covering 13 states in the Mid-Atlantic and Midwest, is another critical hub, evidenced by the strategic Google–Voltus partnership targeting that market. Other key data center states are following suit; NRG Energy’s planned 1, 000 MW VPP in Texas and APS’s 145 MW program in Arizona are direct responses to projected load growth in those regions. The most significant development, however, is the emergence of the Tesla-Sunrun-Renew Home national VPP. This 16, 000 MW initiative transcends regional boundaries, suggesting that VPPs are now seen as a scalable solution for the nationwide challenge of powering the digital economy.

VPP Scaling, Tesla’s 16 GW National Project Signals Commercial Maturity

These installations reveal a market that is rapidly moving from demonstration to large-scale commercial operation. While smaller, utility-led pilots like Georgia Power’s show that some regions are still in the early stages of adoption, the scale of other projects indicates full commercial maturity. The 16, 000 MW national VPP from Tesla and its partners is an order of magnitude larger than previous efforts, demonstrating that aggregating residential assets at a national scale is now commercially and logistically viable. Likewise, Google’s ability to strike deals for hundreds of megawatts of VPP capacity with Voltus and Enel X shows that corporate VPPs are no longer a niche concept but a bankable, scalable asset class. The success of established programs like CAISO’s provides the operational confidence for these larger ventures to move forward, confirming that the technology and business models are ready for primetime deployment.

Google and Tesla Deals Signal New VPP Partnership Models for 2026

For the year ahead, the critical strategic development will be the proliferation of direct partnerships between technology companies, energy providers, and DER aggregators to build VPPs specifically for data center loads. This model bypasses slower, traditional utility procurement and creates dedicated, flexible capacity.

• The June 2026 announcement of a 16, 000 MW VPP by Tesla, Sunrun, and Renew Home is the primary signal. Its explicit purpose is to offer dispatchable capacity to tech giants and utilities, validating the business case for aggregating home energy devices to power the AI boom.
• Google’s innovative deal with Voltus, also from June 2026, establishes a new financing model. By funding 100 MW of DER capacity directly, Google is not just buying power but actively investing in grid infrastructure that benefits its data centers.
• Regulatory and utility planning is catching up. The approval of Georgia Power’s VPP pilot in July 2025, as part of a plan to meet data center demand, shows that utilities are now formally integrating VPPs as a solution to grid strain, creating a more favorable environment for such projects.

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