AI Data Centers Are Causing ‘Distortions’ in the Power Grid from Coast to Coast

The rapid growth of AI data centers across the U.S. is not only straining power grids but also distorting the quality of electricity delivered to homes, threatening damage to appliances and increasing fire risks, according to an analysis performed by Bloomberg.
A recent report by Bloomberg claims that the explosive growth of artificial intelligence is putting an unprecedented strain on the U.S. power grid, and it’s not just about keeping the lights on. A new analysis by Bloomberg, using data from Whisker Labs and DC Byte, shows that the mushrooming of data centers to support AI is distorting the quality of electricity delivered to millions of homes across the country, especially in areas like Chicago and Northern Virginia’s “data center alley.”

The problem, known as “bad harmonics,” occurs when the normal flow of electricity in steady waves is disrupted, leading to erratic spikes and dips in voltage. Whisker Labs, which tracks power quality using roughly 1 million residential sensors, found that more than three-quarters of the worst-affected homes are within 50 miles of significant data center activity.
Sustained exposure to distorted power can cause home electronics to overheat, make motors in appliances like refrigerators and air conditioners to rattle, and over time, lead to billions in damages. But experts warn bad harmonics are just the tip of the iceberg, foreshadowing deeper problems engulfing the nation’s power infrastructure.

“Harmonics are a pretty good canary in the coal mine for early signs of stress and problems,” said Bob Marshall, CEO of Whisker Labs. Left unaddressed, power quality issues can snowball, causing voltage surges that spark fires or sudden sags that trigger blackouts.
The core of the crisis lies in the insatiable appetite of data centers, which can suck up 10,000 times more electricity than a single household. The U.S., which operates the most data centers globally, is projected to see a 16 percent surge in power demand over the next five years, triple last year’s estimate, largely driven by new data centers.
This is straining a grid already burdened by aging infrastructure, extreme weather, and the electrification of transportation and heating. Yet for decades, grid investment has lagged as electricity use remained largely flat — until now.
The fallout is apparent in Chicago, where over a third of sensors showed consistently high harmonic distortions, and in Northern Virginia, the global data center capital, where distortions exceeded acceptable industry limits in areas with facilities coming online or expanding.

While urban centers bear the brunt, the data center effect spans rural America too. Regardless of population density, Bloomberg’s analysis found sensors closer to data centers consistently picked up more distorted power than those farther away.
Experts say several culprits can be behind bad harmonics, from industrial machinery to renewable energy inverters. But the strong correlation between data center proximity and power quality erosion points to their outsized role.
Some remedies, like dedicated substations and power filtering equipment, are being deployed. But a key hurdle remains the lack of granular, house-by-house power quality monitoring by most utilities, due to prohibitive costs. Consequently, distortions ravaging home appliances often go unnoticed until they escalate.

“Embedded in your contract with your utility is the right to receive a certain quality of power,” said Hasala Dharmawardena of North American Electric Reliability Corp., which is studying data centers’ grid impacts. “We need to make sure we measure it, and that our consumers get the power quality that they deserve.”