Mass Data Center Disconnection Sparks Grid Stability Concerns
A sudden mass disconnection of 60 data centers in Data Center Alley, a 30-square-mile hub outside Washington, D.C., raised alarm among power companies last summer after triggering a surge of excess electricity. The event, which involved facilities serving Microsoft, Google, and Amazon, highlighted a new vulnerability in the U.S. electrical grid—unannounced shutdowns by large-scale data centers.
Data Center Alley, home to over 200 data centers, consumes as much electricity as Boston. When these facilities switched to on-site generators due to a voltage fluctuation, grid operator PJM and local utility Dominion Energy were forced to scale back power plant output to prevent widespread outages.
John Moura, Director of Reliability Assessment at NERC, warned that as data centers grow larger, the grid may struggle to handle their sudden disconnections without adding more energy resources. Historically, grid operators planned for power plants unexpectedly shutting down, but the rapid expansion of AI, cloud computing, and crypto mining has introduced new challenges.
The July 10 incident near Fairfax, Virginia, has led to increased scrutiny of the potential grid risks posed by data centers. With 70% of the world’s internet traffic flowing through the area, any disruption can have major economic and security implications.
A month after the incident, the North American Electric Reliability Corporation (NERC) launched a task force to study the impact of data center and crypto mining disconnections. The investigation revealed that the outage originated from a failed surge protector on Dominion's Ox-Possum 230-kilovolt line but rapidly spread across the region.
These "near-miss" events are becoming more frequent as data centers expand. The Lawrence Berkeley National Laboratory reported that data center electricity consumption has tripled in the last decade and could triple again by 2028.
A Reuters review of Texas grid data found over 30 near-miss incidents since 2020, triggered by data centers and crypto miners disconnecting without warning. In December 2022, a transformer failure in Texas caused 400 crypto miners, data centers, and energy facilities to unplug, leading to a 1,700-megawatt power surge, roughly 5% of the grid’s total demand.
With data center energy demands expected to increase significantly, regulators are considering new reliability standards. Some grid operators have proposed requiring data centers to “ride through” minor voltage fluctuations instead of disconnecting immediately.
However, major tech companies oppose this idea, arguing that even slight power instability can damage sensitive electronics and cooling systems. The Data Center Coalition, representing Amazon, Google, and Meta, successfully lobbied against ride-through regulations in Texas, citing costs and hardware longevity concerns.
Energy experts warn that without solutions, uncontrolled data center shutdowns could lead to cascading power outages. Utilities and tech companies must work together to create "grid-friendly" data center standards to prevent future disruptions.
Jim Simonelli, Chief Technology Officer at Schneider Electric, emphasized the need for cooperation: "One thing that doesn’t exist yet for the data center industry is how to be grid-friendly.
