Rising Electricity Demand Threatens Blackouts During Winter Storms

Rising electricity demand, particularly from data centers, poses a significant risk of blackouts during this winter's severe storms. According to a report from the North American Electric Reliability Corporation, or NERC, electricity demand across North America is expected to be 2.5% higher than last year, equating to a total of 20 gigawatts.

This increase is largely driven by the explosive growth of data centers, especially in regions like the mid-Atlantic, the U.S. West, and the U.S. Southeast, where substantial development is underway. Mark Olson, a manager of reliability assessments at NERC, highlighted that Texas is particularly vulnerable, recalling the severe power outages experienced in February 2021 when natural gas plants failed due to frozen wellheads while demand surged.

Although the current outlook for Texas is less alarming owing to the increased battery storage now available in its grid, the report warns that prolonged cold snaps could still challenge these systems.

NERC points out that while batteries can respond quickly to sudden demand spikes, they may struggle to maintain charge levels during extended periods of high energy consumption from data centers. Should a severe winter storm occur, grid operators might have to resort to importing electricity, asking large consumers to reduce usage, or ultimately implementing rolling blackouts.

Meanwhile, a survey by JD Power indicates that power outages across the U.S. are becoming longer due to the increased frequency and intensity of extreme weather events. The average duration of the longest power outage has risen from 8.1 hours in 2022 to an anticipated 12.8 hours by 2025.

Customers in the South reported the longest outages, averaging 18.2 hours, with nearly half of all outages attributed to extreme weather such as snowstorms and hurricanes. Interestingly, while outages are becoming longer, the percentage of customers experiencing uninterrupted power is gradually increasing, suggesting a complex interplay between infrastructure resilience and consumer experiences.

As severe weather continues to impact electricity reliability, utilities in the South have been working to improve customer communication during outages. Reports indicate that nearly two-thirds of utility customers are interested in backup solutions, such as solar energy and generators, to better prepare for potential power failures.

This evolving landscape underscores the urgency for energy infrastructure to adapt to rising demands spurred by both climate change and technological advancements in data processing.