US grid reliability watchdog to recommend data center rules

By Peter Behr | 02/18/2026 06:45 AM EST

The North American Electric Reliability Corp. is worried that fast-changing electricity flows while running AI models could destablize the grid.

Servers inside a data center

Chipmakers who supply artificial intelligence data centers say power flows can be managed. Sameer Al-Doumy/AFP via Getty Images

Power-guzzling data centers must be regulated to protect the nation’s electric grids from dangerous swings in energy flows, the North American grid reliability monitor has concluded.

The North American Electric Reliability Corp. is preparing to release a report next month that documents unprecedented dangers to grid stability, planning and essential equipment as artificial intelligence data centers grow and process more information.

Giant swings in power demand could trigger emergencies and destroy generator equipment, NERC warns in the report, as described to POLITICO’s E&E News by a power industry source who has seen the report. In the report, NERC also says that a lack of collaboration and coordination between data centers and utilities compounds the risks.

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To manage the threats, NERC staff will recommend that data centers register with the grid monitor — which means that they would be required to follow NERC’s rules for maintaining grid stability. Investor-owned utilities, co-ops and public power providers impacted by data center operations could also be required to register under the recommendation.

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