US Grids Limit Big Tech Data Centers During Emergencies

The rapid expansion of Big Tech data centers is placing significant strain on U.S. electricity grids, prompting states like Texas to implement laws allowing utilities to disconnect these energy-intensive facilities during power emergencies to prevent blackouts. This strategy follows the deadly 2021 winter storm blackout and is now being considered in the 13-state mid-Atlantic grid, where data centers are expected to add substantial peak demand that outpaces new power plant development. While Texas leads with legislation setting standards for power emergencies, grid operators such as PJM in the mid-Atlantic are contemplating denying guaranteed power to new data centers during critical periods. Big Tech companies are pushing back, advocating for more flexible rules and incentives, with some, like Google, voluntarily reducing non-essential power use during peak demand to aid grid stability. The competition to support artificial intelligence technologies, exemplified by the surge in data centers following ChatGPT's debut, intensifies the pressure on grids, highlighting the urgent need for energy policy reform that balances technological growth with grid reliability and cost management. This evolving approach aims to protect residents from widespread outages while managing the enormous electricity consumption of data centers.