Rise of AI threatens power grids

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00:00Rise of AI Threatens Power Grids The explosive growth of big tech's data centers

00:06is straining U.S. power grids, prompting policymakers to consider drastic measures like forcing

00:11the facilities offline during electricity emergencies. News.com has learned that Texas

00:16led the way with new rules, and similar proposals are now surfacing in the Mid-Atlantic and Great

00:22Plains, where demand from artificial intelligence and cloud computing is rising faster than new

00:26power plants can come online. In June, Texas lawmakers passed legislation requiring utilities

00:32to establish standards for disconnecting large energy users like data centers during power

00:36emergencies. The move comes after a deadly 2021 winter storm that left millions without power

00:43and caused dozens of deaths. By temporarily shutting off data centers during peak demand,

00:49Texas aims to prevent broad blackouts on the hottest and coldest days. Michael Weber,

00:54an engineering professor at the University of Texas, said the approach is likely to spread

00:58nationwide. We're going to see that kind of thing pop up everywhere. Data center flexibility will be

01:04expected, required, encouraged, mandated, whatever it is, he said. Data centers, which run nonstop to

01:11power AI cloud services and cryptocurrency operations, are expanding rapidly across more than 20 states.

01:18Grid operators have issued warnings about future electricity shortages. Particularly in Texas,

01:24the Great Plains and the Mid-Atlantic. Joe Bowering, head of monitoring analytics,

01:29the independent market monitor for the Mid-Atlantic grid, said the threat is urgent.

01:33Data center load has the potential to overwhelm the grid, and I think it is on its way to doing that,

01:38Joe Bowering said in a statement. While companies are investing in energy-efficient and diesel-fueled

01:43backup generators, they argue that they were not designed to supply the grid during crises.

01:49The data center coalition, representing tech giants and developers, urged regulators to allow

01:54flexibility because not all facilities can switch to backup power quickly. Dan DiIorio of the coalition

02:01added that financial incentives should be offered to operators who voluntarily cut power use during

02:06emergencies. Meanwhile, governors in Pennsylvania, New Jersey, Illinois, and Maryland warned that harsh

02:12rules could deter investment in digital infrastructure. The debate highlights a new approach to energy

02:18planning, i.e., limiting large users during rare moments of extreme demand rather than building costly

02:24new power plants. Abe Silverman, an energy researcher at Johns Hopkins University, posed the question,

02:30is it worth it for society to build those 10 new power plants just to serve the data centers for five

02:35hours a year, or is there a better way to do it? For now, utilities and policy makers are

02:41balancing the economic benefits of data centers against the rising risk of blackouts and higher consumer bills.