Schneider Electric and Kraken, a provider of an energy-focused operating system, have announced a partnership to accelerate global adoption of electricity demand flexibility. The two companies will develop new systems for distribution system operators (DSO) and utilities, with the goal of providing greater capabilities to monitor the grid, forecast congestion, and shift demand in real time. 

The idea is that by unlocking better demand flexibility and enhancing existing network capacity, these capabilities will deliver faster connections for data centers and large industrial loads. The goal is to delay necessary but expensive grid upgrades, helping lower overall system costs and avoid rising bills for consumers and industry, supporting growth, and accelerating the energy transition. 

The partnership also aims to enable households and businesses to contribute to a more flexible and efficient electricity system. Network congestion can be reduced by optimizing electricity demand across EVs, home batteries, solar PV, industrial loads and utility-scale energy resources. It can also balance the grid in real time and create value across the energy system. Analysts estimate the global value of demand-side flexibility across industrial and commercial sectors could be worth up to $1 trillion per year. 

As electricity demand increases, the need for flexibility is becoming more urgent. Electricity demand from data centers alone reached around 415 TWh in 2024, and this figure is set to double by 2030, according to Schneider Electric. In addition, grids face severe congestion because DSOs often lack real-time network visibility. Traditional systems rely on capital-intensive infrastructure upgrades with long lead times. This gridlock delays network connections, stalls growth and increases costs for everyone, the company said. 

The two companies believe the partnership offers a faster, smarter, and more resilient path forward. Schneider Electric’s One Digital Grid Platform and EcoStruxure DERMS, together with efficient demand-side flexibility from its broader EcoStruxure ecosystem, are designed to provide real-time visibility of network constraints for predictive optimization, energy intelligence, distributed control, and for flexible load management.

Kraken complements this visibility by turning distributed energy resources into a single, coordinated system, Schneider Electric said. The AI-powered platform connects EVs, home batteries, and heat pumps to provide visibility over the local, low-voltage network. Kraken orchestrates these devices alongside utility-scale storage, generation assets and industrial loads to shift consumption and balance the grid in real time. 

“For Kraken, it’s clear: speed to flexibility means speed to power. AI is not just a driver of demand – it revolutionizes the capacity we can get out of the grid we already have,’’ said Amir Orad, CEO of Kraken. “We are unlocking that capability at scale to boost grid connections and power growth.”

Together with Schneider Electric, he said the two companies plan to build a more resilient, affordable and cleaner energy system for consumers and the planet.

“Utilities and grid operators are under real pressure to maintain reliability, respond to shifting demand and make better decisions with better data, whilst working with aging infrastructure,” said Frédéric Godemel, EVP of energy management at Schneider Electric. “Our aim is to create an interoperable energy system that works seamlessly. By combining Schneider Electric’s platform approach with specialist partners like Kraken, we can help customers make the most of existing assets, reduce complexity, roll out new capabilities faster, unlock hidden capacity and see value sooner.”