GridCARE Reports Data Centers Can Lower Utility Rates and Enhance Infrastructure Investment

Grid technology company GridCARE estimates that a 1-GW data center could generate approximately $142 million in annual earnings for a midsize utility, potentially allowing for a 5% rate reduction for customers or an annual savings of $103 for the average residential customer. Alternatively, with a capital charge rate of 10.5%, this cash could fund $1.35 billion in capital investments without raising rates.

A blended approach utilizing funds for both rate relief and infrastructure improvements is likely. A related analysis by Camus Energy, encoord, and Princeton University's ZERO Lab indicates that a flexible 500-MW data center could connect to the grid 3-5 years sooner than an inflexible one, significantly reducing power supply costs. This analysis, funded by Google, suggests that flexible data centers could connect in two years and utilize grid power over 99% of the time while needing onsite resources for limited periods.