Rise of AI threatens power grids

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00:00Rise of AI threatens power grids.

00:03The explosive growth of big tech's data centers is straining U.S. power grids,

00:08prompting policymakers to consider drastic measures like forcing the facilities offline during electricity emergencies.

00:14News.com has learned that Texas pioneered new rules,

00:18with similar proposals emerging in the mid-Atlantic and Great Plains as

00:21AI and cloud computing demand grows faster than new power plants.

00:26In June, Texas lawmakers passed legislation requiring utilities to set standards for

00:31disconnecting large energy users like data centers during power emergencies.

00:36This follows the deadly 2021 winter storm that left millions without power and caused dozens of deaths.

00:42By temporarily shutting off data centers during peak demand, Texas aims to prevent broad blackouts.

00:49Michael Weber, professor at the University of Texas, said,

00:51data center flexibility will be expected, required, encouraged, mandated, whatever it is.

00:58Data centers powering AI, cloud services, and cryptocurrency are rapidly expanding across over 20 states.

01:05Grid operators warn of future electricity shortages, especially in Texas, the Great Plains, and the Mid-Atlantic.

01:12Joe Bowering, head of monitoring analytics for the Mid-Atlantic grid, called the threat urgent.

01:16Data center load has the potential to overwhelm the grid, and I think it is on its way to doing that, he said.

01:23Companies invest in energy-efficient and diesel backup generators,

01:26but say they weren't designed to supply the grid during crises.

01:30The data center coalition, representing tech giants and developers, urged regulators to allow flexibility,

01:36since not all facilities can switch to backup power quickly.

01:39Dan Diorio of the coalition added that financial incentives should reward operators who cut power voluntarily during emergencies.

01:47Governors in Pennsylvania, New Jersey, Illinois, and Maryland warned harsh rules might deter digital infrastructure investment.

01:54The debate highlights a new energy strategy, curbing large users during rare peak demand rather than building expensive power plants.

02:02Abe Silverman, an energy researcher at Johns Hopkins University, asked,

02:06Is it worth it for society to build those 10 new power plants just to serve the data centers for 5 hours a year?

02:12Or is there a better way to do it?

02:14Utilities and policymakers now balance data centers' economic benefits against blackout risks and higher bills.