Is the Data Center Boom a Threat to the Power Grid?

In July 2024, Northern Virginia came dangerously close to widespread power outages when 60 data centers in Fairfax County suddenly dropped off the grid, taking 1,500 megawatts of load with them.

The cause? A lightning arrestor failed on a high-voltage transmission line, triggering minor voltage disturbances. But that was enough to set off the sensitive backup systems at dozens of data centers, which instantly disconnected from the grid and switched to generators.

The event sent shockwaves through the power network. Grid operator PJM Interconnection and Dominion Energy had to act fast, rapidly cutting power plant output to avoid overloading the system and causing cascading blackouts.

“Without action,” the report said, “the risk of widespread outages was very real.”

This near miss highlights a growing concern: the explosive growth of data centers and their impact on grid stability. Dominion Energy has seen power commitments to data centers skyrocket—up 88% in just five months, reaching 40GW by the end of 2024.

To prevent future incidents, the North American Electric Reliability Corporation (NERC) is urging operators to better coordinate how and when large facilities disconnect and reconnect to the grid. Sudden shifts like this—especially at massive scale—can threaten power reliability for entire regions.