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What Communities Are Asking About Data Centers

Evidence-based answers to common questions

"Will my electric bill go up?"

With the right policy, data centers apply downward pressure on rates.

Large customers bring new revenue that helps cover shared infrastructure costs. Research shows data centers can lower nearby bills by 1-5%.

"Who pays for all the new infrastructure?"

Industrial tariffs ensure data centers pay their full cost of service.

Utilities are creating dedicated rate classes with demand charges that recover transmission and distribution costs directly from large loads.

"What happens if the data center leaves?"

Tariff structures include minimum contract terms for full cost recovery.

Policies like AEP Ohio's 12-year minimum demand requirements and exit fees protect ratepayers from stranded asset risk.

"Will I have power outages?"

Modern data centers actually help stabilize the grid.

Data centers can reduce operations and activate on-site generators during peak demand. Many include battery storage for grid backup.

Questions to Ask About Any Proposal

What rate schedule will the data center be on?

Does the rate cover full cost-of-service?

Who pays for grid upgrades?

Is any of the load flexible?

Can operations be curtailed during emergencies?

Is on-site generation or storage included?

Are there minimum purchase requirements?

What if the data center closes?

Who bears stranded asset risk?

The question isn't whether to build — it's how to build responsibly so that communities benefit and household bills stay affordable.

✓Energy growth drives progress — from electrification to the internet, expanding energy has powered human advancement.

✓AI accelerates breakthroughs — data centers power research in medicine, materials science, and clean energy.

✓Smart policy protects ratepayers — with the right tariffs, large customers can lower bills for everyone.