UII UPDATE 399 | AUGUST 2025
Intelligence Update

Power companies act to stop data center-induced blackouts

Transmission system operators (TSOs) in several regions are preparing rules to address what they see as an emerging threat: simultaneous actions by large data centers that can destabilize the grid. The new grid codes will require data centers to ride out transient variations in the supply. This follows a series of incidents where data centers, behaving in unison, nearly caused blackouts.

The problem occurs when a grid power disturbance, such as a voltage change, prompts many facilities to switch simultaneously to on-site batteries and/or generators. On grids where data centers consume a large share of electric power, this sudden drop in demand can destabilize the system. When the fault is cleared, a secondary problem can occur: as data centers return to grid power to recharge batteries alongside their normal demand, they can cause a sharp increase in the overall load.

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