Key facts
- A power line failure outside Washington, D.C., led to a near-simultaneous disconnection of over 3 gigawatts of data center load.
- The event caused voltage fluctuations across the PJM grid, affecting areas from Northern Virginia to Chicago.
- Data centers disconnected by switching to backup power, removing their demand from the grid and causing supply to surge.
- Experts warn that the increasing concentration of data centers poses a growing risk to grid stability.
- A startup, ON.Energy, is developing battery-based systems to help data centers manage power fluctuations and present a stable load to the grid.
A recent power line failure near Washington, D.C., caused a significant disruption to the PJM grid when over 3 gigawatts of data center load disconnected almost simultaneously. This event, which caused voltage spikes and flickering lights across a vast region, highlights the growing challenge of integrating massive AI data centers into existing power infrastructure. Experts warn that such incidents, where large loads rapidly switch to backup power, are becoming more frequent and could foreshadow larger blackouts if not addressed.
The PJM Interconnection, which manages grids serving 67 million customers, experienced a sudden drop in demand when data centers switched to backup power following a voltage dip caused by a downed power line. This rapid removal of load sent supply surging, destabilizing the grid for over 10 minutes. The incident echoes a similar, though smaller, event two years prior, underscoring a trend of increasing data center impact on grid stability.
Ricardo de Azevedo, CTO at ON.Energy, described the event as a "canary in the coal mine," indicating that such issues involving large loads are escalating. Ali Zain Banatwala, a specialist at the Independent Electricity System Operator, suggested that data centers need to implement more sequential and orderly disconnection and reconnection processes to allow grid operators to manage disruptions effectively.
To mitigate these risks, startups like ON.Energy are developing solutions. The company is creating uninterruptible power supply systems for entire data center campuses that use batteries to absorb grid fluctuations and maintain a consistent load. These systems can charge when excess power is available and dispatch power when needed, reacting within milliseconds to prevent grid sags or surges. ON.Energy is currently installing 3 gigawatts of these systems across four data center campuses.
Grid operators are also recognizing the need for change. ERCOT, for example, is moving to require large loads like data centers to "ride through" disruptions rather than immediately disconnecting. The scale of the problem is growing; the recent event was twice as large as a similar incident in 2024, and data centers are projected to constitute a significantly larger portion of grid demand by 2040, making proactive solutions critical.