Tesla, Sunrun and Renew Home launch 16 GW virtual power plant in the United States

Tesla, Sunrun and Renew Home announced a framework to aggregate over 16 GW of flexible home‑energy capacity for hyperscalers and utilities across U.S. markets. The virtual power plant will draw from hundreds of thousands of home battery systems, rooftop solar, smart thermostats and vehicle‑to‑grid assets, allowing rapid deployment of power without new transmission lines or land.

More than 300 MW of capacity is already available in Virginia’s Data Center Alley, with at least 500 MW expected by 2030. The companies say the platform can be activated in months, easing grid congestion, freeing transmission capacity and providing backup power for homes while supplying fast‑response electricity to AI‑driven data centers.

The partnership sparked a sharp rise in Sunrun’s share price, jumping up to 31 % after the announcement. Analysts cite the deal’s potential to cut U.S. electricity bills by $110‑$170 billion over a decade and to offset billions in delayed data‑center projects caused by power shortages.