Seattle Startup Edo Turns Office Buildings Into Virtual Power Plants

As AI demand and extreme weather strain the grid, utilities are tapping into flexible energy use in commercial buildings.

Apr. 6, 2026 at 10:21am

Got story updates? Submit your updates here. ›

Seattle startup Edo is helping utilities turn office buildings into virtual power plants to address the growing energy demand from data centers, AI systems, and extreme weather events that are putting added stress on the power grid. Edo installs technology that connects to existing building systems like HVAC, batteries, solar, and EV charging, allowing everything to work together and giving building operators a clearer picture of what can be adjusted without disrupting daily operations. This approach reduces strain on the grid without building new infrastructure, with the potential to provide up to 160 gigawatts of flexible capacity by 2030 if adoption ramps up.

Why it matters

As AI drives up electricity demand, flexible energy strategies are becoming more important than ever. Instead of racing to build new power plants, utilities are rethinking how existing power gets used. Virtual power plants like Edo's offer a practical solution to keep the grid stable without major disruptions or high costs.

The details

Edo focuses on commercial buildings, which make up a large share of U.S. electricity use. The company installs technology that connects to existing building systems and links them through standard communication protocols, allowing everything to work together instead of operating in silos. Edo then maps out where energy is being used and when, giving building operators a clearer picture of what can be adjusted without disrupting daily operations. When demand spikes, a building can temporarily reduce non-essential power use, such as cooling a space earlier in the day or delaying equipment that does not need to run right away. Across thousands of buildings, those small shifts add up quickly.

  • Edo was founded in Seattle, Washington.
  • Virtual power plants have been around for years, mostly in residential settings.

The players

Edo

A Seattle startup that is helping utilities turn office buildings into virtual power plants.

U.S. Department of Energy

According to the U.S. Department of Energy, virtual power plants could provide up to 160 gigawatts of flexible capacity by 2030 if adoption ramps up.

Got photos? Submit your photos here. ›

What’s next

As AI demand continues to grow and put more pressure on the grid, utilities and building operators will need to further explore and expand the use of virtual power plants to maintain grid stability.

The takeaway

Virtual power plants offer a practical and scalable solution to the growing energy demands of AI and extreme weather events, allowing utilities to tap into the flexibility of existing commercial buildings without the high costs or major disruptions of building new infrastructure.