U.S. Power Grid More Reliable but Facing Increased Outage Risks

The U.S. power grid has become more reliable in recent years, but it is now at greater risk of severe outages than ever before, according to a report by the North American Electric Reliability Corporation (NERC). While the grid’s performance has improved since the early 2010s, the system faces heightened vulnerabilities due to rapid increases in energy demand.
NERC highlights the growing strain on the grid from artificial intelligence applications, cryptocurrency mining, and widespread electrification across the economy. These factors are driving unprecedented demand, with data centers emerging as one of the most significant near-term challenges. The rapid expansion and operation of these facilities are placing additional pressure on the grid’s capacity, according to the report.
John Moura, a senior NERC official, stated, “We think we’re adequate, but we’re actually exposed to a lot more risk than we have appetite for.” The findings underscore the need for urgent investment in grid infrastructure to address these emerging risks and ensure long-term reliability.

Published: 6/13/2025