Rising data center electricity use risks blackouts during winter storms

The rapid expansion of data centers is raising concerns about the resilience of the electrical grid this winter, warns a leading industry authority. According to a report from the North American Electric Reliability Corporation (NERC), electricity demand in North America is projected to rise by 2.5% compared to last year, totaling 20 gigawatts. This marks a notable increase from recent years, where winter demand typically grew by only 1% or less. Data centers are a significant contributor to this increased demand, particularly in regions such as the U.S. Mid-Atlantic, West, and Southeast. Mark Olson, NERC's manager of reliability assessments, highlighted that these areas are experiencing substantial data center development. The report specifically mentions Texas, indicating that the state's data center growth heightens the risk of electricity supply shortages. Texans may recall the severe power outages experienced nearly five years ago during a brutal cold snap, when frozen wellheads caused natural gas power plants to fail, leading to a drastic reduction in fuel supply. As residential and commercial heating needs surged, the situation became critical. At the time, the governor attributed the failures to wind turbines, despite them being a minor factor in the crisis. This winter, NERC suggests that Texas may not face a repeat of the 2021 disaster, largely due to the increased number of batteries integrated into the state's grid. These batteries are designed to provide backup power when gas-fired plants cannot meet demand, and they respond more swiftly to fluctuations than traditional gas-powered “peaker” plants. However, challenges remain. The majority of the batteries in Texas can only supply power for a limited duration, which is generally adequate for brief spikes in demand, such as during evening hours. NERC warns that data centers tend to have a constant energy requirement throughout the day. If a prolonged cold snap occurs, ensuring these batteries remain charged enough to serve all customers, including data centers, could prove difficult. NERC is optimistic that if this winter passes without severe storms, the electrical grid will remain stable. However, with four significant storms in the past five years, the organization cautions that grid operators may need to import electricity, request large users to reduce consumption, or even implement rolling blackouts as a last resort.