Why the power grid needs so many programs

One of the best things people have said about the power grid is… it doesn’t exist. The grid works best when it’s down to the background.

That decline has changed in recent years as fires in California and freezes in Texas have raised concerns about the power grid. But it was in 2025, when the power grid — and concerns about demand, supply, prices, and stress on natural resources — began to shine a light. And a new class of startups has emerged with software-as-a-solution.

Electricity prices have risen 13% in the US this year driven by the AI ​​boom that has entered unexpected places, including reengineering of supersonic jet engines for data center work and work sunlight falling from the sky.

And that growth spurt is not expected to slow; the number of data center applications and it is expected to be about three times higher in the next decade. This prophecy has grown consumer frustration around trees and He was angry with environmental groups who have asked for the whole country to stop new projects. Utilities, which have been working in the background, are now looking to upgrade the grid and create new electricity that can handle the load – the fear of an AI explosion is constantly looming in the background.

This combination of demand and fear may lead to an increase in programs in the coming year.

For example, basics like Gridcare and Yottar argue that storage capacity already exists on the grid and software can help find it.

Gridcare has gathered information on transmission and distribution lines, fiber optic connectivity, extreme weather, and community input to complete the search for new equipment and ensure the grid can handle it. Already, the company says it has found several such sites that have been neglected. Yottar finds the place where the known power exists and intersects with the needs of middle users, helping them to connect quickly in the middle of the data center boom.

A number of other startups are using software to connect large, scattered batteries to the grid. The startups can turn these ships into power stations to provide power to the grid when it’s needed most.

Base Power, for example, is building one in Texas and renting batteries to homeowners at low prices. Homeowners can use batteries to provide backup power in the event of a blackout, while Base can use them to prevent blackouts by selling excess power to the grid. Terralayer is doing the same, although it doesn’t sell batteries themselves. Instead, Terralayer uses software to collect stored energy that is already installed on the German grid.

Other causes including Stability, Ascent, and Camus are creating software components combining and connecting distributed energy sources such as wind, solar, and batteries. The hope is that by organizing various things, they will be able to do less and contribute more to the community.

There is also hope that software can help replace some of the older parts of the grid.

For example, Nvidia partnered with EPRI, the company’s R&D organization, creating corporate models they hope to increase efficiency and resilience. Currently, Google is working with grid operator PJM to use AI to help analyze its backlog of connection requests from new energy sources.

These changes won’t happen overnight, but 2026 could be the year they start to take effect.

Utilities tend to be slow to adopt new technologies because of concerns about reliability. But they are also reluctant to invest in new infrastructure because it is expensive and long-term. Taxpayers and regulators have been known to quit if this starts to affect affordability.

Software, however, is cheap, and if it can solve the reliability problem, the companies that provide it will have access to it.

And this can be more profitable than basic hawking programs. Eventually, the grid will need to be updated and expanded. Considering the number of data centers and the installation of electricity in large infrastructures, including transport, heating, etc., we will need more energy. It would be foolish to ignore the power of software in these situations. It’s cheap, flexible, and quick to ship.