Sprawling data centers may increase the risk of blackouts this winter.
The North American Electric Reliability Corporation published a report on Tuesday that found expected power consumption this winter is set to grow by 20 gigawatts compared to winter 2024 — most of which is not driven by residential demand.
"The biggest one is data center growth in many parts of North America," Mark Olson, manager of reliability assessment at NERC, told Business Insider of the increase in power demand.
"Other factors like electrification of different parts of the economy — transportation, heating — it can vary by region, but we have identified data centers as one of the leading contributors," Olson added.
Olson said that the biggest energy demand growth areas are Texas, some Southeastern states, as well as the Mid-Atlantic area, where the "data center alley" is located. According to the report, while these regions have adequate resources under normal conditions, severe winter storms could unleash a polar vortex, triggering energy shortfalls.
"Winter electricity demand is rising at the fastest rate in recent years, particularly in areas where data center development is occurring," the report says. "Data centers are altering the daily load shape due to their round-the-clock operating pattern, lengthening peak demand periods."
According to the report, there are other smaller drivers of electricity demand in various regions, including industrial electrification in the Southwest and semiconductor manufacturing in the Northwest.
Business Insider previously reported that a wave of new AI data centers sparked backlash from residents in at least 13 states who are facing higher household electricity bills. As major utilities move ahead with multibillion-dollar projects to expand power generation, few rules stop them from passing those costs on to all customers.
OpenAI CEO Sam Altman, in a letter to the White House's Office of Science and Technology Policy, recommended that the US add 100 gigawatts of energy production capacity a year to stay competitive in the AI race. He did not specify who would be footing the bill.
The pushback against high energy bills and data centers is already influencing local elections. Earlier in November, Democrats Peter Hubbard and Alicia Johnson ousted two Republican incumbents on Georgia's Public Service Commission, which regulates the state's major utility companies and their rates. The two Democrats ran on affordability and have been outspoken about ensuring that ratepayers aren't paying for data centers.
OpenAI, Amazon, and Google did not immediately respond to requests for comments.
