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(Bloomberg) — Key grids across the US have lowered their summer demand forecasts to reflect the slower-than-anticipated pace of data centers and other large connections, potentially helping avoid heat-related blackouts and energy shortages in the coming months.
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Demand is still expected to rise by 11 gigawatts this summer from a year earlier, equal to enough energy to power more than 8 million US homes on average, the North American Electric Reliability Corp. said in its annual summer assessment. That increase, along with growing political pushback against data centers over energy affordability concerns, is making it harder for new facilities to quickly connect to the grid.
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While the threat of electricity supply shortfalls hasn’t disappeared, a smaller jump in demand, combined with the ability to limit data center power use during peak hours and rely more on battery storage, is helping ease grid stress.
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Even America’s biggest power grid, which has struggled to manage power-hungry data centers and rising electricity costs, may able to dodge energy crises this summer. PJM Interconnection LLC has 26% extra reserves for this summer, according to NERC. That comes after PJM sharply reduced its demand forecast for 2027 because data centers aren’t being built or connected to the grid as fast as expected.
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Texas is also seeing a decrease in demand that may help it weather the hotter summer months. The state grid operated by the Electric Reliability Council of Texas is expected to see net internal demand fall by 3.7 gigawatts from a year ago because more data centers can now be curtailed by operators to help prevent emergencies. That capability is largely due to Texas Senate Bill 6, enacted last year, which allows the grid to limit large electricity users during peak hours.
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Texas continues to have robust growth in battery storage, according to NERC, helping the state manage peak electricity demand. During winter storms earlier this year, Texas avoided blackouts by relying on its hefty energy-storage network.
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NERC, based in Atlanta, is a not-for-profit regulatory authority that aims to ensure the reliability and security of the electric grid across the US, Canada and parts of Mexico.
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