"AI Boom Sparks Rare Warning Of ‘Significant Risks’ To Grid"

"The grid monitor, North American Electric Reliability Corp., is issuing its warning as it develops new standards for large data centers."

"North America’s grid watchdog is slated to issue its highest level of warning Monday about threats to the power system from large data centers, underscoring the challenges facing utilities and grid operators grappling with a surge in electricity demand.

The move signals a new chapter where major technology companies like Amazon and Microsoft may face stricter rules on how they use power. The Level 3 alert from the North American Electric Reliability Corp., the grid’s not-for-profit security monitor, was developed after reports of data centers abruptly going offline in Virginia and Texas, raising concerns about blackouts.

“Computational loads, such as data centers, could increase exponentially in the next four years,” NERC said in a draft of the alert, adding that “significant risks” to the bulk power system “need to be addressed through immediate industry action.”"

Christa Marshall reports for E&E News May 4, 2026.

Source: E&E News, 05/05/2026