The retirement of over 24 gigawatts of coal, natural gas, and nuclear power plants is causing a structural reliability problem for the Western U.S. power grid. This transition threatens the steady flow of electricity needed for advanced technologies because the grid is losing the heavy machinery that keeps power frequencies stable, according to the authors of the newly released report.
“This transition creates a structural reliability problem. Data centers cannot tolerate voltage instability, frequency deviations, or extended outages, yet the grid is losing the synchronous, spinning-mass generation that historically provided essential grid reliability services, including inertia (a grid’s ability to maintain a steady frequency), voltage support, and black-start capability (the initial burst of electricity needed to restart a grid).”
In simpler terms, older power plants use heavy, spinning equipment that naturally acts like a stabilizer for the electric system, ensuring the power flow does not fluctuate. When these are shut down and replaced by weather-dependent sources like wind and solar, the grid loses its built-in ability to stay steady, which can lead to equipment-damaging power surges or unexpected blackouts for homes and businesses.
The report “Winning the AI Race: Tapping into Pumped Storage Hydropower” was published by the National Hydropower Association in March 2026. Produced by the association’s policy experts in Washington, D.C., the document provides a strategic roadmap for leveraging long-duration energy storage to meet the surging power demands of data centers and advanced manufacturing.
