Power Grids Push for Tech Cutbacks

A technician works at an Amazon Web Services AI data center in New Carlisle, Ind.NOAH BERGER/AMAZON WEB SERVICES/GETTY IMAGESSome technology companies are fighting a potential solution: disconnecting the data centers from the grid when electricity is in short supply.Across the U.S., tensions are mounting as companies including Alphabet's Google, Amazon.com and Microsoft debate with utility executives whether their electricity needs can be met without causing blackouts during times of extreme demand.Power officials have been raising concerns that the grid isn't equipped to handle the sheer number of data centers tech companies are seeking to build. They say it will take many years to build new transmission lines and power plants needed to support the surge in demand while keeping the lights on for others.Meanwhile, they are working to find ways to connect data centers to the grid sooner without jeopardizing the reliability of the system.Some have proposed either requiring or encouraging data centers to stop using it when there is a risk of blackouts, either by powering down or switching to backup electricity supplies."It's a high-stakes fight, because hundreds of billions of dollars or trillions of dollars of capital are on the line," said Michael Webber, an engineering professor at the University of Texas at Austin and former chief technology officer at investment firm Energy Impact Partners. "Power is the critical bottleneck." The problem is most acute within PJM Interconnection, the organization responsible for overseeing a power market spanning 13 states in the Midwest and Mid-Atlantic region.A surge in data-center development there already has pushed electricity prices higher and made the threat of blackouts more likely.