Are data centers to blame for power quality issues?

Many grid operators are struggling to meet customer power demands — in both volume and quality. As demand rises, utilities must also monitor and account for customer usage patterns that can degrade power quality (and add costs) for others on the grid. A 2024 Bloomberg analysis revealed a concentration of residential power issues occurring near data center hubs in the US, which signaled a potential new setback for data center community relations.

Correlation alone does not prove data center electrical loads are responsible. In fact, many data centers measure and correct power quality for their own purposes, which also minimizes negative effects on the grid. However, communities have already raised concerns about data centers’ access to power and the value they produce. To ask whether these criticisms are fair misses the point: local authorities will base their decisions on their own perspectives when governing the construction of new capacity.