US data center demand will raise power risks in winter, says regulator

The North American Electric Reliability Corporation warned on Tuesday that the growing power demand from data centers will shrink U.S. energy supplies, increasing the likelihood of an energy shortage if winter weather is extreme this year.

Electricity use in the U.S. is increasing faster than the supply of power. This is due to the rapid proliferation of data centres, as well as the electrification and modernization of buildings and transport. This dwindling power supply could lead to power shortages during extremely cold weather when heating systems are used more.

NERC officials reported in their winter annual assessment of reliability of U.S. power grids and Canada that after multiple years of flat growth or near-flat, peak demand grew by approximately 20 gigawatts or 2.5% from last year. The new electricity net supply added in the last year was less than 10 gigawatts.

"As a consequence, record-setting demands are expected for some areas. This may cause grid strain in areas that have double-digit growth rate," NERC stated.

NERC reported that the forecasts for peak demand in areas such as PJM, parts of the U.S. West, and the U.S. Southeast have seen the greatest increase.

The regulator stated that the areas assessed by NERC, including the U.S., Canada and other countries, had sufficient power supply under normal winter weather conditions for the three-month period ending in February. NERC warned that prolonged and widespread cold weather could lead to power shortages, especially in New England, Texas, and the Southeast.

NERC said that the growth of power sources such as wind and solar which produce energy only when the wind blows or the sun is shining, has increased grid complexity and heightened reliability concerns in certain areas. The freezing temperatures can also affect the fuel and power sources for natural gas, which increases risks. (Editing by Aurora Ellis).

(source: Reuters)