Pennsylvania's statewide energy regulator warns of potential power outages due to rapid data-center build-out, citing insufficient transmission and generation.
Data centers pose a serious electricity reliability risk to Pennsylvania consumers, according to a report released September 14 by the Pennsylvania Public Utility Commission, which regulates energy utilities in the state. The study, titled "Assessing Electricity Resource Adequacy in Pennsylvania and PJM," examined how the regional grid operator's electricity supply will sustain itself as demand grows and existing generation retires.
The analysis draws on projections from the PJM Interconnection, which estimates that data center consumption will double by the end of the decade, consuming roughly 6.7% to 12% of total U.S. electricity generation by 2028. If supply fails to keep pace with this growth, the facilities could increase outages across the PJM grid, which covers the eastern United States.
According to the PUC, as reliable fuel-based generation such as coal-fired power plants and gas turbines retire, the combination of increased demand and decreased supply will strain the grid, particularly in winter. By 2030, the study found, electricity reliability risk is nearly six times worse than PJM's projection. PJM designed its grid to limit potential outages to one event every ten years. Under a more severe scenario in the PUC report, the agency estimates that roughly 13 loss-of-load events could occur per year starting in 2030.
"Pennsylvania is at an energy crossroads," PUC Chairman Steve DeFrank said. "Data center development brings significant opportunities, but that growth cannot come at the expense of the families and businesses that already depend on reliable and affordable electric service."
The PUC commissioned Synapse Energy Economics, an independent research and consulting firm, to develop the projections and assess grid reliability. The state has already taken measures including updating emergency electric load control regulations and creating a Ratemaking Working Group to examine how costs from high-load events are distributed and protect consumers and utilities. Pennsylvania Governor Josh Shapiro also signed an executive order in August directing the Department of Environmental Protection to only permit data centers that adhere to his GRID standards, which require facilities to bring their own power sources.
The reliability findings align with emerging concerns from artificial intelligence leaders. On September 12, Dario Amodei, CEO of Anthropic, warned that the AI industry should slow its rapid development to allow safety measures to catch up. Without such measures, he cautioned that within six to twelve months, AI could enable agents to take over the internet. These warnings have received backing from other AI company leaders, including OpenAI's Sam Altman, Google DeepMind chief Demis Hassabis, and xAI owner Elon Musk. "We could lose control of the future to AI," Altman said in a September 14 post on X calling for increased safety measures. OpenAI and ChatGPT announced they would delay taking their stock public until next year while they develop enhanced safety protocols.
President Donald Trump responded on September 14 via Truth Social, calling safeguard proposals a "hoax" and stating that the only control needed is "a strong and smart (high IQ!) president, and the U.S.A. has that, in spades!"