Data centers' growth strains U.S. electricity grid reliability

The rapid growth of data centers is creating new challenges for U.S. electricity grid operators. These centers, which support AI and cryptocurrency mining, require a lot of power. If several shut down unexpectedly, it can upset the balance of power supply and demand. In Data Center Alley, near Washington D.C., more than 200 data centers use as much electricity as the city of Boston. Last summer, 60 of these centers suddenly disconnected from the grid due to a safety measure. This action caused a surge of excess electricity that alarmed officials and forced grid operators to reduce power from plants to prevent outages. Federal regulators are now aware of this new risk to the electrical grid. The capacity of these data centers can exceed what the grid can handle, especially when disconnections happen unexpectedly. Alison Silverstein, a former energy regulatory adviser, warned that data centers could lead to widespread outages if their behavior doesn't change. The North American Electric Reliability Corporation (NERC) has formed a taskforce to study these disconnections. They reviewed a July incident, which stemmed from a fault in utility lines, and realized the potential for problems is increasing as data centers grow in size and number. In Texas, similar near-miss scenarios are occurring, with major energy users disconnecting unexpectedly. Reports suggest the power consumption from data centers could triple by 2028. Regulators are urging updates to federal reliability standards for these energy-intensive facilities. Some grid operators want data centers to stay connected during minor power dips, but operators resist this, fearing damage to their equipment. There have been failed proposals to enforce such requirements due to industry pushback. Experts highlight the need for a cooperative approach between utilities and data centers. One official pointed out that the description of how data centers can operate more harmoniously with the grid is still being defined.