Protecting our power grid and communities from Big Tech’s data center explosion

Big Tech is racing to build massive data centers to power the artificial intelligence boom and these facilities are putting unprecedented demands on our electric grid, raising our rates, and disregarding community input.

Right now, a federal energy agency is developing standards for large energy users like data centers in order to protect the integrity of the electric grid. For the first time, they are accepting public comments on their draft standards.

Data centers should not get a free pass. We must make sure there is greater transparency and guardrails for the risks that data centers pose to our grid, our electric rates, and our communities.

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Hold Big Tech accountable for data centers

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Dear NERC, Big Tech is building massive data centers at a breakneck pace and our electric grid is being asked to absorb the consequences. Your role as designated enterprise reliability organization is to ensure and protect the integrity and reliability of the bulk power system. We understand that these facilities can consume enormous amounts of electricity and behave in unpredictable and novel ways that are difficult for grid response– ultimately creating new and unprecedented risks for the reliability of the bulk power system. As NERC develops new reliability standards for data centers and other large computational loads, this development period offers a critical opportunity to make sure the computational load entities (CLEs) driving unprecedented growth are held accountable–and responsible guardrails put in place–for the risks imposed. NERC should not sacrifice strong standards in the name of speed. NERC must establish strong, universal standards that apply to CLEs regardless of when they were built, connected, or (prospectively) plan to connect to the grid. Weak retroactivity provisions and broad exemptions could leave existing and planned data centers outside the very rules needed to protect the grid. Industry stakeholders that rushed to build massive AI data centers knew they were taking on the risks that come with rapid expansion. Those same first movers should not now be rewarded with exemptions from reliability requirements simply because they moved first. Developing comprehensive standards to address the nature of the risk may require time to ensure thoughtful and comprehensive standards, and NERC should take the necessary time to do so. NERC must also be transparent about what these standards will require. Utilities, state regulators, regional grid operators, and other policymakers are already developing their own rules for massive new electricity loads. Clear information from NERC will help ensure that these efforts work together rather than allowing data center developers to exploit gaps between different rules. NERC has a responsibility to protect the reliability of our electric grid. Please make sure the rules are strong enough to meet this moment—and that the unprecedented risks from large computational loads are meaningfully and comprehensively addressed. Sincerely,

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