Data centers, with ravenous appetites for land and electricity, are top of mind in rural America and for good reason. Expected to raise new U.S. energy demand by 30% by 2030, data centers are setting their sights on electric co-op country, where power is affordable and reliable, and they have acreage to spread out.
Overall, data centers connect the world through digital networks, and that requires a significant and steady flow of electricity without pause. Their job is to electronically store, manage and transmit tons of internet-based information 24/7 to ensure the fast, uninterrupted operation of the World Wide Web.
A typical data center can require 100 megawatts (MW) of electricity, which could serve nearly 100,000 households, every day. A growing number of data centers are much larger. Known as hyperscale campuses, these centers demand upwards of 600 MW — enough to power Washington, D.C.
So, can electric co-ops take advantage of data centers’ gigantic demand and protect consumer-members at the end of the line? The short answer: yes.
“Co-ops are uniquely positioned for this work,” said Allison Hamilton, markets and rates director for the National Rural Electric Cooperative Association. “Their commitment to serving all members — not just the large load — means they approach these projects with care, collaboration and a focus on long-term community benefit.”
Electric co-ops already are serving almost 300 data centers nationwide, mostly in Virginia, Texas, Illinois, Oregon and Georgia, with another 150 under construction to meet the escalating global needs of artificial intelligence (AI), digital programs and storage.
Lower land costs plus tax incentives for locating a business in rural areas are attractive to data center developers. But perhaps the top draw is the reliable, affordable electricity co-ops offer.
With a footprint larger than a football field, these massive concrete, windowless structures house two huge energy consumers: thousands of computers and significant cooling systems to keep them running.
There are many pluses for co-ops serving data centers. Co-op service areas with data centers are experiencing local business booms with jobs created around the new facility well after its construction. A data center’s addition to the tax base also allows for school and road upgrades.
For the co-op, there can be greater efficiency gains and support for system-wide improvements, including broadband fiber for retail internet service. Having such a constant large energy consumer also offers a means to keep rates steady.
“The predictable, around-the-clock nature of these large loads can create stable revenues and reduce upward pressure on rates for the entire membership,” said Hamilton. “For co-ops, data centers offer long-term load growth, revenue stability and potential for broadband and grid modernization. These projects can also bring new tax base, jobs and investment and attract additional businesses to the area.”
