US policymakers are considering a solution to prevent data centers from overloading the electricity grid during power emergencies: temporarily disconnecting them. This move is driven by the rapid growth of Big Tech's data centers, which are straining the power grid and causing concerns about blackouts.
Texas has passed a bill requiring standards for power emergencies, allowing utilities to disconnect large electric users, including data centers, during critical periods. The nation's largest grid operator, PJM Interconnection, which serves 65 million people in the mid-Atlantic region, has proposed a similar concept, sparking debate among power plant owners and the tech industry.
Data center operators are installing backup generators, typically diesel-fueled, to ensure uninterrupted power supply, but say they hadn't anticipated needing to help grid operators meet demand. Grid operators project a significant spike in electricity demand due to data centers, with some warning that the grid could be overwhelmed.
The potential solution has raised concerns about cost implications, with electricity bills nationally rising fast to subsidize Big Tech's energy needs. Governors of several states are advocating for incentives to encourage data centers to build new power sources and reduce electricity use voluntarily.
The Data Center Coalition is pushing for flexible standards, considering the varying capabilities of data centers to switch to backup power. Grid operators could offer financial rewards to data centers that voluntarily shut down during emergencies, providing a potential solution to the growing strain on the power grid.
