AI boom sparks rare warning of ‘significant risks’ to grid

The North American Electric Reliability Corp. (NERC) has issued its highest level of warning regarding the significant risks data centers pose to the power grid, citing a surge in electricity demand from AI. NERC is developing new, mandatory reliability standards for large data centers to address concerns about grid stability and potential blackouts, following incidents in Virginia and Texas where data centers unexpectedly disconnected from the grid. These proposed regulations would require Federal Energy Regulatory Commission (FERC) approval.