The spike in data centers is one of the main contributors to electricity demand and blackout risks this winter

The expansion of data centers appears to be a significant factor in the increased risk of blackouts this winter. A recent report from the North American Electric Reliability Corporation (NERC) highlights an anticipated rise in power consumption of 20 gigawatts compared to the previous winter, predominantly attributed to the growth of data centers rather than residential usage. Mark Olson, who oversees reliability assessments at NERC, explained to Business Insider that data centers are emerging as one of the primary drivers of this escalating demand. "The most notable contributor is the growth of data centers across various regions in North America," Olson remarked. He also noted that while factors such as the electrification of transportation and heating are relevant, data centers remain a key focus. Particularly affected areas include Texas, parts of the Southeastern United States, and the Mid-Atlantic, known for its concentration of data centers. The report indicates that although these regions typically have sufficient resources, extreme winter conditions could lead to energy shortages due to polar vortex events. "This winter, electricity demand is notably rising, especially in regions witnessing the development of data centers," the report states. It further elaborates that the operational patterns of data centers are reshaping daily energy usage, extending peak demand periods. Other smaller contributors to the electricity demand surge have been identified as industrial electrification in the Southwest and semiconductor manufacturing in the Northwest. Previous reports indicated that residents in at least 13 states expressed concerns over rising household electricity bills linked to the influx of new AI data centers. As utility companies embark on extensive projects to expand power generation, there are few regulations preventing them from passing on these costs to consumers. In a letter to the White House's Office of Science and Technology Policy, OpenAI's CEO Sam Altman suggested that the U.S. should increase energy production capacity by 100 gigawatts annually to maintain competitiveness in the AI sector, although he did not clarify who would bear the financial burden of this expansion. The growing discontent regarding high energy bills and the influence of data centers is already shaping local political landscapes. In Georgia, recent elections saw Democrats Peter Hubbard and Alicia Johnson defeat two Republican incumbents on the state's Public Service Commission, which oversees utility rates, by campaigning on affordability and advocating for consumer protection against data center costs. As the dialogue around energy and data centers evolves, major tech companies like OpenAI, Amazon, and Google have yet to provide comments on the matter.