Technology8/14/2025Bloomberg

Data Centers Need Own Power Supply, US Grid Watchdog Says

Data Centers Need Own Power Supply, US Grid Watchdog Says

The U.S. grid watchdog, the North American Electric Reliability Corporation (NERC), has advised that data centers seeking to connect to the country's largest power grid must develop their own power supply. This recommendation comes as the demand for data services continues to grow, placing increasing strain on the existing grid infrastructure. NERC's stance is driven by concerns that the surge in data center power requirements could potentially destabilize the grid, leading to reliability issues and potential outages. By requiring data centers to have their own power supply, the watchdog aims to ensure the grid's stability and resilience, preventing any disruptions that could impact a wide range of critical services and industries. The decision highlights the need for data centers to take a more proactive approach to their energy needs, potentially exploring alternative power sources or implementing more efficient energy management strategies. As the digital landscape evolves, the collaboration between data centers and grid operators will be crucial in maintaining a reliable and secure power supply for the future.

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