As artificial intelligence systems increasingly rely on distributed and collaborative training, the energy footprint of these processes becomes a shared responsibility. Modern AI training often unfolds across heterogeneous compute nodes-ranging from cloud clusters to edge devices-whose energy availability is spatially and temporally variable. At the same time, renewable energy grids experience growing levels of excess generation, creating opportunities to align computational workloads with low-carbon energy supply. In this work, we develop a game-theoretic model of carbon-aware AI training in which autonomous agents strategically choose whether to participate and how intensively to train under limited renewable energy availability. Each agent balances diminishing learning returns, rewards for remaining within green-energy budgets, and penalties for grid consumption. While our framework applies broadly to distributed AI training, we examine Federated Learning as a representative case study due to its decentralized structure and flexible scheduling. We analyze equilibrium existence, efficiency, and adaptive dynamics, and provide simulation evidence that appropriately designed incentives can eliminate grid-based energy usage while preserving model performance. Our findings demonstrate how incentive-compatible training mechanisms can enhance energy efficiency and sharply reduce carbon emissions under renewable-energy constraints.
Eco-friendly energy management for artificial intelligence data centers (AIDCs) is crucial because of the significant increase in energy consumption-induced carbon emissions from AIDCs resulting from the rapid expansion of AI applications. This paper proposes a hierarchical carbon-aware multi-agent reinforcement learning (CA-MARL) framework for robust and efficient operations of AIDCs under uncertainties while ensuring low-carbon operation of power distribution systems. The framework comprises a workload manager (WM) agent and multiple local AIDC agents trained using a multi-agent transformer method, corresponding to a global AIDC aggregator and a local AIDC operator, respectively. Leveraging AIDC operation data along with nodal carbon intensity (NCI) calculated from the carbon emission flow-integrated distribution system operator problem, the WM agent spatially allocates AI training and inference jobs among all AIDCs. Based on the jobs allocated from the WM agent and NCI information, each AIDC agent schedules economical and eco-friendly operations of the AIDC by performing the following tasks: i) temporal shifting of training jobs, ii) spatial allocation of training graphics processing unit (GPU) blocks and inference GPUs within the AIDC, and iii) control of the supply air temperature of the cooling system. The effectiveness of the proposed framework was assessed using an IEEE 33-node power distribution system.
The rapid expansion of artificial intelligence (AI) infrastructure is driving unprecedented growth in electricity demand from data centers. Traditional power-system planning treats large computing facilities as inflexible peak loads, leading to costly infrastructure upgrades and long delays in grid interconnection. Recent work has shown that AI clusters can reduce electricity consumption during peak demand through software-based workload orchestration. This article explores how modern GPU-based AI data centers can operate as grid-interactive assets that respond dynamically to power system conditions. We describe an architecture integrating grid signals, workload scheduling, and power telemetry for fine-grained cluster power control. Experimental results from a real-world deployment on a 130 kW GPU cluster demonstrate multiple forms of flexibility, including rapid load reduction, sustained curtailment, and carbon-aware operation while preserving service levels for priority jobs. We further demonstrate performance-aware load shifting across geographically distributed clusters, enabling workloads to migrate toward regions with lower grid stress. Together, these capabilities transform AI infrastructure from static electricity consumers into flexible resources that support grid reliability, accelerate interconnection, and improve computing sustainability.
Data centers now account for 4.4% of United States electricity demand, yet the grid-level effectiveness of the renewable energy certificates (RECs) and power purchase agreements (PPAs) hyperscalers use to claim carbon neutrality remains unclear. We develop a game-theoretic model in which a data center operator chooses among RECs, PPAs, and behind-the-meter colocation while generators make entry decisions under endogenous financing costs. The model identifies a timing wedge -- the mismatch between consumption and credited renewable generation -- as a central mechanism through which AI demand degrades reliability, raises prices, and increases emissions even when RECs cover 100% of annual consumption. Colocation with storage addresses this wedge directly and induces the greatest renewable entry by eliminating generator revenue risk. We test these predictions by exploiting the staggered release of large language models as a natural experiment, using difference-in-differences on a novel dataset linking AI activity to local grid outcomes. AI demand significantly increases fossil generation, wholesale prices (up to 25% in treated PJM zones), and outage frequency (0.5--1 additional outages per year) near data centers, with impacts scaling in model size. Data centers with on-site generation exhibit a sign reversal in power-quality effects, consistent with the model's prediction that behind-the-meter capacity absorbs demand spikes. Counterfactual analyses show that edge inference, spatial reallocation, and colocated storage each substantially mitigate grid impacts, while REC-only strategies do not. Together, our results demonstrate that the externalities of AI to the grid are tightly coupled to procurement design and the spatial organization of data center infrastructure.
Dana Golden, Aruna Balasubramanian, Niranjan Balasubramanian