The grid cannot cope with the rise in data centers
The US Department of Energy issued an order allowing PJM, the regional grid operator, to disconnect large data centers in Virginia and Maryland from the grid during peak strain. This measure is a last resort to prevent rolling blackouts, as the demand for electricity, largely driven by data centers and AI, is rapidly increasing nationwide. The article highlights the significant challenges the US grid faces in coping with this surge in demand.
The US Department of Energy authorized PJM, the grid operator for 67 million Americans from Chicago to Washington, to mandate the disconnection of large data centers in Virginia and Maryland from the electricity grid. This unprecedented measure, which allows PJM to order facilities drawing 50 megawatts or more to switch to diesel generators within 15 minutes, was deemed a "last resort" to avert rolling blackouts during a summer heat dome. Secretary of Energy Chris Wright emphasized that maintaining power supply is "non-negotiable."
The article attributes a significant and rapid increase in American electricity demand to the artificial intelligence boom and the proliferation of data centers. After two decades of flat demand, consultants now project a 166-gigawatt rise in peak demand by 2030, a sixfold increase from earlier forecasts, with data centers expected to account for roughly half of all demand growth. Data centers consumed 4.4% of American power in 2023, a figure projected to reach 7-12% by 2028.
Challenges include a backlog of over 2,000 gigawatts in new power plant projects, with only one in seven typically built, and long delays for new transmission lines due to permitting and litigation. The article notes that data centers further complicate grid stability by automatically switching to their own generators during disruptions. The government has also resorted to emergency orders under a Depression-era statute to keep old coal and oil plants running, despite some regional grid operators not requesting such actions and state regulators disputing the existence of energy emergencies.
This strain on the grid is an expensive burden, with the annual cost of securing capacity in the PJM region rising from $2.2 billion to $14.7 billion in one year, passed on to households. The problem is not unique to the US, with Ireland and Britain facing similar issues of surging data center demand outstripping grid capacity and infrastructure development.