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States and Grid Operators Advance Emergency Cutoffs for AI Data Centers

The shift reflects record power demand from AI facilities, with consumer electricity costs rising faster than overall inflation.

Overview

  • Texas enacted a June law directing regulators to set standards that require large power users, including data centers, to be disconnected during grid emergencies.
  • PJM proposed rules under which some new data centers would not be guaranteed service in emergencies, drawing pushback from tech groups and several governors who urged incentives and bring‑your‑own‑generation alternatives.
  • The Southwest Power Pool signaled it will expand power‑reduction programs for the biggest customers as projections show demand surging across Great Plains states.
  • Consumer electricity prices rose 6.2% year over year in August to a two‑year high, while the Energy Information Administration projects record U.S. power consumption in 2025 and 2026 driven in part by data centers.
  • A bipartisan House bill from Reps. Jim Costa and Blake Moore would require Energy, Interior, and Agriculture to study how AI data center buildouts affect rural communities, energy costs, supply, and reliability.