Executive Brief: Planning for Power Outages and Grid Instability
As extreme weather, aging infrastructure, and rising energy demands continue to strain the U.S. power grid, businesses face increasing risks of unexpected outages and rolling blackouts. For many organizations, even a short disruption can lead to significant financial losses, reputational harm, and operational chaos. This brief outlines why executives should prioritize power contingency planning, what questions to ask IT and facilities teams, and how to build a resilient business strategy in the face of grid instability. For related guidance, see our Executive Brief on backup testing and validation.
The Growing Challenge of Grid Reliability
Power reliability has become a growing concern for organizations of all sizes. According to the U.S. Department of Energy, demand for electricity is outpacing upgrades to transmission infrastructure in several regions, increasing the likelihood of grid stress during peak periods. Summer heatwaves, winter storms, wildfires, and cyberattacks have all contributed to a noticeable uptick in outages over the past five years.
For businesses, the impact can be significant: lost sales, halted production, data loss, and damaged customer trust. Yet many executives assume that power contingency planning is purely a facilities or IT responsibility, rather than a boardroom priority. Engaging your Recovery+ team early can help close this gap.
Why Executives Need to Lead
While operational teams handle day-to-day technical details, executives are ultimately responsible for ensuring the organization can meet its obligations — to customers, partners, and regulators — even during adverse events. Without top-down leadership, power contingency plans often remain incomplete, untested, or underfunded.
Leadership should focus on three core goals:
- Uptime: Keep critical systems online, even if at reduced capacity.
- Safety: Protect employees and customers during disruptions.
- Continuity: Maintain communications, data integrity, and core operations.
What Questions to Ask Your Teams
Executives don’t need to be electrical engineers or IT architects to lead effectively. Instead, they should ask the right questions to ensure accountability and clarity:
- Do we have an updated power contingency plan that includes IT, facilities, and key business functions?
- Which of our systems and operations are mission-critical, and what level of backup power do they require?
- Have we tested our uninterruptible power supplies (UPS) and generators within the last six months?
- Do we have vendor relationships in place for emergency fuel, generator rental, or co-location if our main site is offline?
- Are our backup and recovery processes resilient to a sudden outage in the middle of business hours?
- Do employees know who to contact and what procedures to follow during an outage?
Simply asking these questions — and demanding clear answers — can uncover vulnerabilities and motivate proactive improvements. For help with structured policies and audits, consult our Security+ services.
Key Elements of a Resilient Strategy
Here are some specific components your team should consider as part of a robust power contingency plan:
Invest in Backup Power
At a minimum, critical systems such as servers, network equipment, and emergency lighting should be connected to UPS systems capable of bridging short outages or providing enough time to shut down gracefully. For longer outages, diesel or natural gas generators are often the best solution — but they require regular maintenance and fuel contracts to remain reliable.
Identify Tiered Priorities
Not every system needs to stay online during an outage. Work with IT and operations teams to map out which systems are truly critical, which can operate in reduced mode, and which can pause safely. This helps optimize the use of limited backup power resources. For more insight, see our Recovery+ page.
Test and Review Regularly
Even a well-designed plan can fail if not regularly tested. Conduct at least annual — and ideally quarterly — simulated outages to verify equipment, employee readiness, and communication channels. Capture lessons learned after each exercise and update plans accordingly.
Plan Beyond IT
Power planning is not just about data centers and computers. Consider HVAC for employee comfort and safety, emergency lighting, security systems, refrigeration (if applicable), and customer-facing systems such as point-of-sale. A holistic approach ensures nothing is overlooked. Partnering with Support+ can help align facilities and technology priorities.
Don’t Wait for a Crisis
Power disruptions rarely announce themselves in advance. By the time a storm hits or the grid operator issues a blackout warning, it’s often too late to react effectively. Leaders who invest in planning now not only reduce risk but also strengthen customer confidence and organizational resilience.
As the Department of Energy’s summer reliability assessment makes clear, outages are no longer rare, isolated events. They are becoming part of the business environment — and executives who treat them as such are far better positioned to maintain competitive advantage during disruption.
Final Thoughts
Power outages and grid instability may seem like operational issues, but they have strategic consequences. Executive oversight is crucial to ensure plans are comprehensive, tested, and aligned with organizational goals. By asking the right questions and insisting on accountability, business leaders can ensure their organizations remain resilient — no matter what happens to the grid.
For more insight into national power grid risks, see the U.S. Department of Energy’s 2024–2025 Reliability Assessment.