Varun Sivaram is Founder and CEO of Emerald AI, a company building software that makes AI data centers power flexible. As AI data centers become one of the fastest-growing sources of electricity demand, grid constraints are emerging as a critical bottleneck for compute deployment.

In this episode, the conversation focuses on why power availability — not GPUs — is increasingly the limiting factor for AI. Data centers concentrate massive electrical loads in specific locations, creating grid stress, long interconnection delays, and rising electricity costs for surrounding communities. Traditional grid expansion alone is too slow to meet near-term AI demand.

Emerald AI’s response is to treat AI data centers as flexible loads rather than fixed ones. Its software coordinates compute with grid conditions by shifting workloads across time, geography, and on-site energy resources like batteries. The episode walks through real-world demonstrations, including a published field trial showing a 25% power reduction during grid stress without breaking compute performance. The discussion frames flexible load as one of the fastest ways to unlock power for AI while improving grid stability.

Episode recorded on Feb 2, 2026 (Published on Feb 10, 2026)

In this episode, we cover:

• (0:00) Intro
• (1:36) What Emerald AI is and how it works
• (6:41) Varun’s background and why he founded Emerald
• (10:59) Emerald’s software for power-flexible data centers
• (19:04) The three types of flexibility: temporal, spatial, and resource
• (23:29) How much control customers give Emerald
• (28:20) Coordinating compute with on-site energy like batteries
• (31:27) Off-grid vs. grid-connected data centers
• (35:39) Why exiting the grid creates political and systemic risk
• (37:12) Emerald AI’s open roles

Links:

• Varun Sivaram on LinkedIn: https://www.linkedin.com/in/varunsivaram
• Emerald AI: https://www.emeraldai.co/
• AI data centers as grid-interactive assets paper

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*Editing and post-production work for this episode was provided by The Podcast Consultant