Energy Department advises grid operators to use data centers as backup plan for winter storm

As many states across the nation brace for a severe winter storm this weekend, the Department of Energy is advising grid operators to use data centers as backup generation sources in case of a power outage in their area.

Secretary of Energy Chris Wright made the recommendation in a Thursday letter to the nation’s electrical grid operators. The backup plan for power generation is to address what he calls a “national energy emergency” amid Winter Storm Fern.

“The Trump administration will not stand by and allow the previous administration’s reckless energy subtraction policies and bureaucratic red tape put American lives at risk,” Wright said in a statement.

“We have identified more than 35 [gigawatts] of unused backup generation that exists across the country and are taking action to ensure that if the nation needs it, the generation will be made available,” he added. “Rest assured, President Trump and the Energy Department remain committed to doing everything in our power to mitigate blackouts and lower energy costs for the American people.”

The Energy Department had been working on the plan for months for implementation during emergencies, such as the impending winter storm or during peak demand periods in the summer, Wright told the Wall Street Journal.

Invoking Section 202(c) of the Federal Power Act, the draft order applies to data centers and major industrial or commercial facilities and requires backup power resources as a last resort before an energy reliability coordinator declares an Energy Emergency Alert Level 3. The alert, which warns of possible rolling blackouts, is the highest stage of a power grid emergency.

The letter notes critical facilities, such as military installations and hospitals, won’t be required to run backup generation during the early stages of an energy emergency.

“I expect the Reliability Coordinators and Balancing Authorities to work closely with the facilities within their service territories to deliberately prioritize the dispatch order of backup generation to achieve the greatest benefit to the bulk power system while balancing mission-essential functions,” Wright wrote.

There are between 4,000 and 5,000 data centers in the United States. Virginia, the data center hub of the world, has 190 operating data centers that boast over 3,000 megawatts of capacity.

The snowstorm is expected to be particularly severe, stretching from the Midwest to the Northeast. At least 14 states have already declared emergencies, warning residents to brace for power outages precipitated by heavy snowfall.

Natural gas prices rose nearly $3 on Thursday from one week ago as the major winter storm traveled through the country, according to the U.S. Energy Information Administration.

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Wright is not the only Cabinet official working overtime in preparation for this weekend’s inclement weather. Secretary of Homeland Security Kristi Noem met with state and local leaders this week in advance of potential emergencies.

“DHS, [the Federal Emergency Management Agency], [the Cybersecurity and Infrastructure Security Agency], [the U.S. Coast Guard], and our other federal partners are closely monitoring conditions and coordinating with state and local partners to ensure readiness,” Noem posted on X Thursday afternoon. “Governors remain in the lead, and we stand ready to support.”

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