A significant winter storm has caused widespread disruptions across the United States, with frigid temperatures, ice, and snow affecting millions. On January 25, 2026, in Nashville, Tennessee, vehicles struggled to navigate around fallen branches due to the harsh weather conditions. The storm, named Winter Storm Fern, has led to a sharp increase in electricity prices in regions home to energy-intensive data centers.
Real-time wholesale electricity prices surged to an astonishing $1,800 per megawatt-hour in Dominion Energy’s Virginia sector on Sunday, a steep rise from the $200 per megawatt-hour recorded just a day earlier. Virginia is known for hosting the largest concentration of data centers in the world, which have increasingly contributed to rising power demand through their substantial electricity needs.
The spike in demand was first noted late Saturday night, coinciding with the onset of the winter storm. PJM Interconnection, which operates the largest U.S. regional grid serving 67 million customers, anticipates reaching an all-time record for winter electricity demand on Tuesday. This projected demand is largely attributed to the ongoing needs of data centers. PJM expects demand to reach 147.2 gigawatts, surpassing the previous winter peak of 143.7 gigawatts set in January 2025.
As temperatures remain low and heavy snowfall continues, Dominion Energy has indicated that the current conditions may result in one of the most significant winter challenges for its operations. On Sunday morning, demand in Dominion’s service area reached around 23 gigawatts per hour, exceeding original forecasts by about 5%.
The surge in demand has led to elevated spot wholesale electricity prices across the nation, straining regional grids as they strive to meet the increased consumption by residential and business customers. Local distribution lines powering homes and businesses have faced disruptions, leaving nearly 900,000 customers without power on Sunday. Tennessee experienced the most significant outages, with over 300,000 customers affected, while more than 100,000 outages were reported in Mississippi, Texas, and Louisiana. Other states such as Kentucky, Georgia, Virginia, and Alabama also reported power disruptions.
As the winter storm continues to impact daily life and utility operations, both residents and businesses are bracing for further challenges in the coming days. However, the situation also highlights the increasing resilience and adaptation strategies that communities and energy providers are implementing to cope with the demands of extreme weather events.