Artificial intelligence (AI) is revolutionizing industries, but it’s also creating significant challenges for power grids across the U.S. The rapid rise of AI data centers is consuming enormous amounts of electricity, disrupting the flow of power, and causing issues for millions of Americans.
A closer look by Bloomberg reveals how these facilities impact homes and the national grid.
The Hidden Cost of the AI Boom: Distorted Power Supply
AI data centers are concentrated near major cities like Chicago and Northern Virginia’s “data center alley,” where distorted power is becoming a growing concern. These distortions, known as “bad harmonics,” occur when the smooth wave pattern of electricity is disrupted.
Think of it like static noise on a speaker when the volume is too high. This irregularity can cause appliances to overheat, motors in refrigerators to rattle, and, in extreme cases, sparks or electrical fires.
Distorted power isn’t just inconvenient—it’s expensive. Harmonics-related issues could lead to billions in damages, as they degrade home electronics and strain the aging infrastructure of power grids.
What Causes Power Distortions?
The surge in AI-driven data centers puts unprecedented pressure on the power grid. Unlike population growth, which creates steady, predictable demand, data centers require massive electricity loads, equivalent to powering thousands of homes.
These facilities are being built faster than grid upgrades can keep up, especially as the nation grapples with aging infrastructure and rising demand for electric vehicles (EVs).
Whisker Labs, a company that tracks power quality using sensors in nearly a million homes, found that homes closer to data centers are more likely to experience distorted power.
According to Bloomberg’s analysis of Whisker Labs’ data, over 75% of areas with severe power distortions are within 50 miles of data centers.
Where Is the Problem Worst?
The issue is particularly bad in areas like Chicago and Northern Virginia. For instance, in Loudoun County, Virginia, home to a massive concentration of data centers, 6% of sensors showed power distortions exceeding the industry limit of 8%.
In Chicago, more than a third of sensors recorded high distortion levels over nine months.
While urban areas are more affected, rural regions aren’t immune. Even in sparsely populated areas, homes near data centers are more likely to experience bad harmonics than those farther away.
Why Bad Harmonics Matter
Poor power quality, such as bad harmonics, reduces efficiency and shortens the lifespan of appliances. Worse, it signals deeper problems in the grid.
Bad harmonics happen when electrical currents deviate from their smooth, wave-like motion, typically at 60 revolutions per second. Industry engineering standards set acceptable limits for these deviations in local power lines.
- If distortions consistently exceed 8% from the ideal wave pattern, they can lower efficiency and cause equipment to wear out more quickly.
Harmonics are like potholes on a highway—minor at first but potentially catastrophic if ignored. Over time, these disruptions can escalate into voltage surges, flickering lights, and even widespread blackouts.
Thomas Coleman, CEO of Structure Energy Solutions, warns that harmonics are just one symptom of a “perfect storm” of grid stressors. These include extreme weather, the electrification of transportation, and the growing reliance on renewable energy sources.
The U.S. is the global leader in data center capacity, with Northern Virginia hosting more than twice the operational capacity of its next biggest competitor, Beijing. Yet, the country’s power grid hasn’t been adequately prepared for the surge in demand.
The nation’s electricity use will rise 16% in the next 5 years—triple the growth forecasted just a year ago—driven largely by data centers. And AI power-hunger will double data center’s energy requirements by 2030.
As the AI boom continues, the risk of grid failures and power distortions is likely to increase. Most utilities lack the tools to measure harmonics at the residential level, making it harder to address the problem.
Are There Solutions?
Fortunately, there are ways to manage these challenges. Data centers in Virginia are now required to build their own substations and transformers, isolating them from residential power circuits. Additionally, utilities are installing filters and capacitors to stabilize the flow of electricity and reduce harmonics.
Dominion Energy, which serves much of Northern Virginia, is building a new transmission line to improve reliability in “data center alley.”
However, even these efforts may fall short as hundreds more data centers come online in the next few years.
The North American Electric Reliability Corporation (NERC) is studying the impact of data centers on power systems and plans to release a report in 2025. Their findings could help shape strategies to strengthen the grid and ensure power quality for consumers.
Why Power Quality is Important
Most people don’t think about the quality of electricity flowing through their homes, but it’s a critical issue. Poor power quality can cause long-term damage to appliances, increase energy costs, and pose safety risks.
Carrie Bentley, CEO of Gridwell Consulting, believes the problem can be solved if addressed early. She particularly said that:
“If you know it exists, it is easy to fix.”
Improving power quality is also about fairness. Consumers pay for reliable electricity, and utilities are responsible for delivering it. Hasala Dharmawardena, a senior engineer at NERC, emphasized this noting that:
“Embedded in your contract with your utility is the right to receive a certain quality of power.”
As AI transforms industries and accelerates data center growth, its energy demands will continue to strain power grids. Addressing the issue will require investment in infrastructure, stricter regulations, and new technologies to monitor and manage power quality. By taking action now, utilities and regulators can protect homes, preserve appliances, and ensure the grid can support the digital economy of the future.
