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One fallen power line exposed a growing AI data center problem. Here’s how to fix it.

A power line went down outside of Washington, DC, causing data centers in Northern Virginia to switch to backup power, removing 3.1 gigawatts of load from the grid and causing lights to flicker. The incident highlights the growing problem of data centers disrupting the el…

By Tim De Chant·Jul 25·techcrunch.com·3 min read

Intelligence analysis by Llama

One fallen power line exposed a growing AI data center problem. Here’s how to fix it.
Image: techcrunch.com

A power line failure in Washington, DC, caused data centers in Northern Virginia to switch to backup power, removing 3.1 gigawatts of load from the grid and causing lights to flicker. This incident highlights the growing problem of data centers disrupting the electrical grid.

Why it matters

The growing problem of data centers disrupting the electrical grid has significant implications for the reliability and resilience of the grid, and experts believe it will become more frequent as data centers continue to grow in size and number.

Imagine a big power grid that needs to balance supply and demand. When a power line fails, data centers in Northern Virginia switch to backup power, removing a lot of load from the grid and causing lights to flicker. This is a growing problem that experts think will get worse as data centers grow in size and number.

Analysis

A $60B Vote of Confidence

The recent power line failure in Washington, DC, has exposed a growing problem in the electrical grid: data centers disrupting the grid's reliability and resilience. The incident, which caused data centers in Northern Virginia to switch to backup power, removing 3.1 gigawatts of load from the grid and causing lights to flicker, highlights the need for a more elegant solution to handle disruptions to power supplies.

The grid and devices connected to it can tolerate small fluctuations, but if those fluctuations grow too large, they'll trigger failsafes within the grid or within individual facilities, causing them to disconnect. When data centers in Northern Virginia sensed the fluctuation caused by the failed power line, they switched to backup power, which removed their load from the grid. As more data centers made the switch, they removed greater amounts of load from the grid, sending supply surging and causing light bulbs to flicker.

Most data centers make decisions in a split second, and those that disconnected this week appear to be no different. When the voltage dip reached them, they all decided to disconnect within a few seconds of each other, Ali Zain Banatwala, senior market models specialist at the Independent Electricity System Operator, told TechCrunch.

A more orderly process would allow grid operators to develop more robust procedures in advance. Alternatively, data centers could be built to absorb disruptions and not turn their backs to them. One startup, ON.Energy, has been working on a product to help data centers — and the grid — ride through events like the one that occurred this week.

The company has developed an uninterruptible power supply for an entire data center campus, covering not just servers but also chillers and other equipment. The company essentially hides the data center behind a bank of batteries connected to sophisticated power conversion equipment. All the grid “sees” is one consistent, well-behaved load rather than the peaks and valleys from each individual part of the data center.

ON.Energy’s system allows data centers to ramp computing workloads up and down, including AI training, without bothering the grid. Perhaps more important, it also means that data centers can absorb power fluctuations from the grid. Rather than disconnecting from the grid, ON.Energy’s system can use any extra power to charge its batteries, and if the flow dips, the system can dispatch power to servers. Plus, it can follow the grid’s lead within milliseconds, preventing sags or surges like the ones that caused this week’s problem for PJM.

The clock is ticking, though. The mass disconnection this week was twice as large as a similar event in 2024, when 60 data centers simultaneously disconnected, pulling 1.5 gigawatts of load from the grid. Back then, data centers accounted for about 6% of PJM’s load, according to Synapse Energy Economics. By 2040, they are expected to make up 24%. If the problem isn’t addressed soon, things could get a lot worse.

Key points

  • A power line failure in Washington, DC, caused data centers in Northern Virginia to switch to backup power, removing 3.1 gigawatts of load from the grid and causing lights to flicker.
  • The incident highlights the growing problem of data centers disrupting the electrical grid.
  • Experts believe the problem will become more frequent as data centers continue to grow in size and number.
  • Startups like ON.Energy are working on products that can help data centers and the grid work together more smoothly.
  • The clock is ticking, though, and if the problem isn't addressed soon, things could get a lot worse.
The Upside

If data centers can be built to absorb disruptions and not turn their backs to the grid, it could help prevent problems like the one that occurred this week. Additionally, startups like ON.Energy are working on products that can help data centers and the grid work together more smoothly.

The Downside

If the problem of data centers disrupting the grid isn't addressed soon, it could get a lot worse. The mass disconnection this week was twice as large as a similar event in 2024, and by 2040, data centers are expected to make up 24% of PJM's load.

Originally reported at

techcrunch.com

Discernion covers the story. Read the full piece at the source.

Tagsaiclimatedata centerselectrical grid

Author

Tim De Chant

Intelligence analysis by

Llama

Published

Jul 25, 2026

Source

techcrunch.com

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aiclimatedata centerselectrical grid

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