South Dakota, Iowa and Nebraska named top AI power states

DATA program gives Heartland customer communities the edge in attracting data centers

CNBC recently highlighted 10 U.S. states best positioned to power the artificial intelligence data center boom. On that list: South Dakota, Iowa and Nebraska.

These states offer the affordable, reliable electricity tech companies are looking for.

Heartland Energy’s customer communities are already preparing for this kind of growth, thanks in part to the recently launched Demand-Adjusted Technology Advantage, or DATA program.

Through an interruptible rate design, it helps communities attract data centers while ensuring reliable and cost-effective energy.

Power + programs = opportunity

Data centers need two things to thrive: stable, low cost electricity and communities ready to grow with them.

South Dakota, Iowa and Nebraska ranked high on this list because outages are rare and electric rates are among the lowest in the country.

The study uses “U.S. Department of Energy data on grid reliability – the duration of power outages per year – as well as the retail price of electricity.”

The study notes, “With a wealth of inexpensive, reliable electricity, these states are the best equipped to power the AI revolution, and everything else.”

CNBC said it considers each state’s electrical grid in its annual competitiveness study, America’s Top States for Business.

What is DATA?

The DATA program was created to help attract and support large, power-intensive customers–especially data centers.

These facilities often have unique energy needs.

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

Data centers with a peak load of at least 5 MW may be eligible for the program. They must be capable of participating in demand response programs within their respective RTO and perform quarterly tests to demonstrate interruptibility.

It’s designed to help customers grow and bring new investment into their communities.

“We’ve created a program that gives communities a competitive edge in recruiting energy-intensive projects,” said Heartland Director of Economic Development Casey Crabtree. “Data centers are going to continue to pop up. We want to help our customers be prepared to take on these loads responsibly with the best interests of all customers in mind. ”

Heartland customer communities poised for growth

A 2024 report commissioned by the U.S. Department of Energy found that data centers – the backbone of artificial intelligence – already accounted for more than 4% of U.S. electricity use, and the report said that could grow to 12% by 2028.

The report states that DOE is leveraging resources to meet increasing electricity demand while improving critical infrastructure and advancing American economic competitiveness.

A key strategy DOE is implementing to meet data center energy demand includes: Engaging with stakeholders on innovative rate structures to support data center expansion while maintaining affordability.

The DATA program does just that.

By requiring adjustment of power usage during peak demand, Heartland customers can benefit from these economic opportunities without putting extra strain on the grid, or other customers.

With national attention and tools like DATA in place, our customer communities are prepared to compete–and win–in the next wave of data-driven development.