Data centers may feel like a big-city phenomenon, but they are increasingly becoming part of the electric utility conversation across rural America. While data centers have been around for decades, their size and the technologies they support, including artificial intelligence, are driving significant growth in electricity demand.
In many ways, this growth is connected to technology we use every day. Streaming services, cloud storage, online applications and artificial intelligence all rely on data centers operating behind the scenes. As our reliance on these
technologies grows, so does the need for facilities capable of storing and processing enormous amounts of information.
Data centers are a hot topic across the country, and electric cooperatives are beginning to receive inquiries from developers looking for places to build and connect these large facilities. Crow Wing Power has not been approached by a developer seeking to connect a data center to our system. However, we believe it is important to be proactive and prepared. If a request does come our way, we want to understand what serving this type of load would require and be prepared to make informed decisions.
What makes these facilities different from many other businesses is the amount and consistency of electricity they require. Data centers operate around the clock, which means the electric system serving them must have the capacity and reliability to meet that demand every minute of every day.
For Crow Wing Power, this presents both an opportunity and a challenge. When properly planned and structured, a large, steady load can support long-term growth and help justify investments in our electric system that can benefit the cooperative and its members. At the same time, serving a load of this size requires careful planning. Power supply, substations, transmission, and distribution infrastructure can require significant lead time and investment.
As I shared in September, our board has adopted a position outlining how we would approach a potential data center connection. Our focus is that of a utility. If we have the available power capacity and can feasibly and reliably serve a new load, our responsibility is to provide that service. That does not mean our members should bear the financial burden of serving it. Any agreement would require the developer to pay the upfront costs of design, infrastructure, and construction necessary to serve its operation. Additional terms could also be established to protect the cooperative and provide value to our members.
This is not about pursuing data centers or determining where they should locate. It is about understanding the changing energy landscape and being prepared to fulfill our responsibility as a utility if a large new customer seeks service from Crow Wing Power.
Our commitment is to plan responsibly, ask the right questions, and make sound utility-focused decisions that protect the safe, reliable service our members depend on.
Your Cooperative, Our Commitment
TIM THOMPSON
Chief Executive Officer