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The North American Electric Reliability Corp. (NERC) is set to recommend regulations for power-intensive data centers to safeguard the electric grid. A report expected next month outlines significant risks to grid stability due to the increasing power demands of artificial intelligence data centers.

NERC warns that large fluctuations in energy consumption could result in emergencies and damage to generator equipment. The report indicates a lack of coordination between data centers and utilities intensifies these risks. NERC staff will advise that data centers must register with the grid monitor and adhere to its stability rules, which may also apply to affected utilities.