DATA CENTERS

LET'S TALK ENERGY

YOUR TRUSTED ENERGY ADVISOR
As data centers become a growing topic in our community, we know our members have questions about what they could mean for the electric system and our cooperative.

Eau Claire Energy Cooperative is committed to providing clear, accurate information about issues that affect our members. As your local electric cooperative, our role is to be your trusted energy advisor. That means understanding how large energy users could affect our electric system, how that would impact our members, what we need to be planning for future energy needs, and being transparent with our members.
WHAT IS A DATA CENTER?
A data center is a facility that houses computer servers and other equipment used to store, process, and move digital information. When you use an app on your phone, stream a movie, make an online purchase, or access information stored in the cloud, there is a good chance a data center is involved somewhere behind the scenes.

Not all data centers are the same. Some are relatively small facilities that support a single business or organization. Others are larger facilities that house servers for multiple companies. There are also large-scale facilities designed for cloud computing, artificial intelligence, and other high-performance computing needs.

FAQs

No. ECEC does not currently have any large data centers connected to its electric distribution system.

ECEC has an obligation to provide electric service to members within our service territory that we have the capacity and ability to serve. A data center would go through the same large member evaluation process as any other business or organization that needs a significant amount of electricity. We would look at how much electricity it needs, how and when it would use electricity, where it would connect to the system, the capacity available, and any infrastructure needed to provide service.

When a high-volume user connects to our system, we sell additional kilowatt-hours (kWh) over the same administrative base or fixed costs. Spreading our fixed operations costs over a much larger number of KWh provides rate stability for all members.

The additional revenue from increased electricity sales can help ECEC manage the cost of maintaining and improving the electric system and may help reduce how frequently rates need to increase over time.

Just as importantly, ECEC would require a large energy user to pay the costs associated with providing its electric service. This helps ensure the cost of serving a new large user is not unfairly shifted to other members.

Just like other large energy users, a data center would be responsible for the costs associated with providing its electric service, including applicable connection and infrastructure costs.

Depending on the size and location of the facility, serving a data center could require new or upgraded lines, substations, transformers, or other equipment. ECEC would evaluate what is needed to provide service and determine the costs associated with that service. The developer would pay these costs up front. ECEC would also develop agreements to cover costs in the event the project is abandoned.

When it comes to the electric system, the biggest concern is not simply how much electricity is being used, but when and how that electricity is being used.

Think of the electric system like a highway. During rush hour, there are a lot of cars on the road at the same time, which can slow traffic and create a need for additional lanes. The rest of the day, that same highway may have plenty of room.

Electricity works in a similar way. A large member that uses a high but steady amount of electricity can be easier to plan for than a member that rapidly increases and decreases. ECEC will continue to encourage members to manage their electricity use during peak times. At the same time, a large energy user does not automatically create a reliability problem. Each large member is evaluated to determine what the system needs to safely and reliably serve it.

There is a lot of information and discussion surrounding data centers and the electric industry, and we know it can be difficult to sort through it all.

We are here to be your trusted energy advisor. We will be transparent about what this could look like and what it could mean for our electric system.

If you have questions about data centers or how a large energy user could affect the electric system, feel free to reach out. We are here to provide information, answer your questions, and help you understand the energy side of the conversation.


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