DATA paves the way for data center growth

Heartland Energy launches Demand-Adjusted Technology Advantage to promote establishment of data centers in customer communities

The world is a digital place.

With the growth of artificial intelligence, streaming services, e-commerce, and remote work, a place is needed to store, process and manage vast amounts of digital information.

Data centers are large facilities used to house computer servers, storage systems, and networking equipment. They also come in the form of Bitcoin mining facilities, where specialized computers work to solve complex math problems to validate and secure transactions on the Bitcoin network.

They are an essential part of modern infrastructure.

As more and more data centers are needed, communities are determining if they have the means to accommodate the large load, while ensuring reliability. 

Heartland Energy is launching Demand-Adjusted Technology Advantage, or DATA, an interruptible data center rate policy customers can use to facilitate construction and operation of data centers, while minimizing risk.

Benefits to a community

Data centers can provide many benefits to the community where they are located.

They require a significant amount of electricity to power servers and cooling systems, which can result in a substantial, consistent revenue stream.

Bitcoin facilities house thousands of high-powered machines running continuously, consuming large amounts of electricity.

Data centers can create jobs. They also tend to increase demand for local infrastructure, such as roads, utilities, and telecommunications, which can improve overall community services.

Moreover, data centers can stimulate the local economy. Local governments may benefit from increased tax revenues, which can be reinvested into public services, schools, and other community development initiatives.

New rate structure addresses challenges

To qualify for the DATA rate, data centers must be located within Heartland Energy’s current service territory. They must have a peak load of at least 5 MW and maintain an 80% load factor.

Infrastructure upgrades may be necessary to adequately serve a data center.

With DATA, the data center would be required to pay for all system improvements and study deposits for transmission and distribution systems.

DATA specifically targets data centers capable of meeting interruptible rules. An interruptible rate is a special rate structure where customers agree to reduce or shut down their electricity usage during periods of high demand.

Data centers would have to be capable of participating in demand response programs within their respective regional transmission organization (RTO). Quarterly tests would be required to demonstrate interruptibility.

This ensures reliable and cost-effective energy, minimizes risks, and meets many market expectations.

Next steps

Customers of Heartland Energy may choose whether to participate in promoting DATA in their community.

Heartland staff will be visiting with customers about the structure of the program and answer any questions they may have.

Data centers do typically require a sizable chunk of land. Centers with 10 MWs of load typically occupy two acres of land.

With the launch of the DATA program, Heartland Energy is providing communities with a strategic opportunity to attract data centers, drive economic growth, and ensure reliable, cost-effective energy for the digital future.