Winter Power Demand on the Rise
The North American Electric Reliability Council (NERC) released a report on Tuesday indicating that winter power demand is growing, particularly in regions with a high number of artificial intelligence (AI) data centers.
NERC’s 2025-2026 Reliability Report warns that many parts of North America might struggle to meet power demand during “extreme operating conditions.” Areas featuring a significant number of these energy-intensive AI facilities face an elevated risk of power outages when severe winter weather hits.
NERC mentioned that “electricity demand is increasing at the fastest pace in years, especially where data centers are expanding.” While resources should be adequate for typical winter peak needs, a prolonged cold snap could prove challenging. The report highlights that demand has surged by 20GW since last winter, noticeably surpassing the peak generation capacity.
Reflecting on the winter storm that impacted Texas and surrounding states four years ago, John Moura from NERC pointed out that this winter’s circumstances resemble those in 2021. “Electricity demand keeps growing quicker than resources we’re adding to the grid,” he noted. “During severe winter conditions, actual demand might even exceed forecasts by around 25%. While some improvements in cold weather preparedness have been made, there’s still a lot of work to do to ensure reliable fuel and energy supplies in extreme conditions.”
NERC also brought attention to the need for the grid to adapt to intermittent energy sources such as solar and wind, alongside natural gas, which can produce less electricity during deep cold spells.
“Winter peak demand usually spikes just before sunrise and after sunset, moments when solar power isn’t available, forcing reliance on wind energy and other dispatchable resources,” NERC explained. They added that many data centers are altering their operational patterns, resulting in extended periods of high demand.
On Wednesday, the Department of Energy (DOE) announced plans to fortify the grid ahead of winter. They issued an emergency order for the J.H. Campbell coal-fired power plant in Michigan, allowing it to stay in operation until February 2026, after a significant outage occurred over Memorial Day weekend. Interestingly, this update came shortly after a prior directive from the DOE to keep the plant open instead of decommissioning it.
Energy Secretary Chris Wright stated, “The United States is grappling with an energy emergency, largely due to previous administrations’ energy cuts that targeted reliable and affordable sources.” He continued, “Our current administration aims to reverse these policies, ensuring that Americans have access to safe and affordable energy, regardless of weather conditions.”
NERC pointed out that factors like data centers, electrification, and semiconductor manufacturing are putting pressure on the power grid in some areas of the U.S.
While the Biden administration is advocating for electrification, the Trump administration has focused on enhancing AI competition and energy policies, raising concerns from experts about the readiness of the U.S. power grid to handle the growing demand from data centers.
