Debates over data centers are intensifying across the U.S. and not just in Oklahoma.
Residents, who are the ratepayers, often do battle with developers because of the anticipated increase in electric rates to pay for the large load required for the centers. Others argue it will mean increased water rates or a depletion of valuable water sources because of the tremendous amount of water used by some data centers in cooling purposes.
Still, there is the argument that data centers will mean increased revenues for cities, counties and states. One such argument is being played out in San Antonio, Texas where there are already about two dozen data centers consuming an estimated 324 megawatts of power. In two years, it is anticipated the consumption of electrical power will skyrocket to 2,700 megawatts of demand and up to 3,300 megawatts by 2033.
Writing in the San Antonio Report, two advocates contended rates could actually be lowered and data centers could be used to create government revenue by use of the grid already paid for by consumers.
Here’s what they suggested:
The financial case is striking. Based on GridCARE’s financial analysis, one gigawatt of AI data center load serviced by the existing system in San Antonio would generate roughly $123 million per year of new revenue after pass-through costs, with zero incremental system costs. That $123 million could cut system-wide rates by up to 4.4% (saving the average customer roughly $64 per year), justify up to $1.45 billion in new infrastructure investment without a rate increase, or both reduce rates and fund new system investment.