Earlier quoted context omitted.
The key word is "suddenly". In the electricity grid, demand and generation must always be precisely matched (otherwise, things burn up). This is done by generators automatically ramping up or down whenever the load changes. But most generators cannot change their output instantly; depending on the type of generator, it can take several minutes or even hours to respond to a large change in the demand. Now consider tha…
I get that lots of servers can add up to lots of power, but what is a "lot"? Is 1MW really enough demand to destabilize a regional power grid?
The question is somewhat similar to a thought experiment. If a ship is docked and loading cargo, is it a good idea to use all the cranes to suddenly fill up one outer side of the ship?