Bad actors from China were reportedly responsible for the Salt Typhoon attacks against U.S. telecommunications companies in late 2024. This group is being investigated for hacking into computer networks in many public and private entities, including investor-owned electric utility companies.

The name Salt Typhoon was not coined by a U.S. government agency. Rather, it comes from naming conventions established by Microsoft. Cyberthreat actors are code-named “Typhoon” if from China, “Blizzard” if from Russia and “Sandstorm” if from Iran, just to mention a few.

Cyberattacks constantly threaten vulnerable utility-based power generation in the United States. It is packed with unknowns.

On the other hand, last month we discussed two quite well-known sources of major power outages: equipment failure and extreme weather. The Great Northeast Blackout of 1965 was chalked up to equipment failure. Today, that is a relatively infrequent cause of outages. 

Extreme weather conditions, however, still produce 80% of today’s major outages, and it is likely that this trend will continue in the future. 

But today, there is another fast-rising challenge to the nation’s electrical system growing at unprecedented speed. The projected power-hungry requirements of data centers driven by artificial intelligence (A.I.) potentially pose a far greater threat than any other to the integrity of the nation’s electrical system.

To grasp the larger implications of foreign-­based cyberthreats and A.I.-driven growth of data centers, we spoke to Virginia Tech professor Ali Mehrizi-Sani, who heads the university’s Power and Energy Center.

Extreme weather events and occasional equipment failures will cause major system outages. But shouldn’t there be greater concern about cyberattacks and direct competition for power posed by data centers?

Cyberattacks on and the explosive expansion of data centers are indeed the new frontiers of risk for the power grid. The energy demand of data centers is changing how and where we use electricity. This requires new approaches to planning, operation and security of the power grid, and if new transmission or generation is needed, it invokes lengthy permitting and regulatory processes. In addition to this systematic risk, as large electronic loads, data centers are an important cyberattack target. A coordinated attack on several data centers can cause voltage and frequency swings, leading generators to go offline and causing blackouts. 

Back in August 2023, we encouraged readers to add installation of on-site generators and batteries to their service offerings. How would you rate that advice today?

Excellent advice then, even more relevant today! On-site generation and storage not only provide backup power, but also enhance resilience, flexibility and participation in emerging energy markets. 

What other insights do you have for contractors working in the electrical service and maintenance business today? 

I’d encourage contractors to think beyond installation and toward integration. Understanding cybersecurity, interconnection standards in different areas and grid services will increasingly differentiate successful contractors.

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