Big Tech’s Data Center Surge Sparks New Risks for U.S. Power Grid

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The rapid expansion of data centers in the U.S., particularly in regions like Data Center Alley near Washington D.C., is creating new risks for the nation’s power grid. Last summer, 60 data centers in this area disconnected from the grid and switched to backup generators, triggering a surge in excess electricity. This unanticipated event strained the grid, forcing operators to scale back power output from local plants to prevent cascading power outages. The situation highlighted vulnerabilities in the grid’s ability to handle large-scale disconnections by massive data centers.

Grid operators and federal regulators, like the North American Electric Reliability Corporation (NERC), have raised alarms about this emerging risk. Historically, the grid was designed to accommodate outages from large power plants, not from the sudden loss of massive data centers, which now consume as much power as major cities like Boston. The shift in power demands, driven by AI and cryptocurrency mining, is forcing a reevaluation of grid management and requiring new contingency plans.

The incident in Fairfax, Virginia, where data centers serving major tech companies like Microsoft, Google, and Amazon are concentrated, underscores the growing impact of data center disruptions. While the failure of a surge protector caused the disconnects, experts emphasize the need for more grid resources to handle the increasing load from tech infrastructure. Experts warn that without proper management, the unpredictable behavior of these facilities could lead to widespread power outages in regions relying on these centers for internet and data services.

The frequency of these near-miss incidents has been on the rise as data centers continue to proliferate, and regulators are now exploring ways to mitigate these risks. NERC created a task force to investigate mass disconnections from data centers and crypto miners, but concerns about the broader implications for grid stability remain as more facilities come online. With the grid under pressure, officials are seeking to balance energy needs while accommodating the expanding tech sector’s growing power demands.

source: reuters

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