The grid is under some serious stress from power hungry data centers, but whose job is it to fix it?
Lately, some policymakers are taking a strict approach. What if we cut off data centers from the grid during power emergencies?
Texas was the first to propose this. In June, a bill was passed that creates standards for disconnecting large loads from utilities in times of grid stress. While the state wants to attract profitable data centers, it also doesn’t want to see another situation like in 2021, when a winter storm caused devastating and deadly blackouts.
Other regions are following suit. PJM, the nation’s largest grid operator, just released a proposal stating that data centers may not be guaranteed power during emergencies. PJM is home to the world’s biggest data center marker in Virginia, in addition to serving 65 million people.
Something has to change. A report from ICF predicts U.S. electricity demand could grow 25% overall by 2030 and 78% by 2050, compared to 2023 levels. Much of this demand comes from data centers. New power generation alone cannot currently keep up with projections.
Big Tech is trying to make data centers more energy efficient, and also installing backup power to use during outages. However, many are pushing back on the idea of needing backup simply to help grid operators meet demand. Meanwhile, electricity bills for the average American are going up to subsidize Big Tech’s energy appetite, at twice the rate of inflation.
There’s plenty of debate on the best course of action. But a healthy mix of new generation, energy efficiency, and good policy will be required if we plan to keep the lights on.
