Data center owners and operators need to structure a utility interconnection and supply agreements to minimize cost and risk. Energy will be the largest data center operational expense and this negotiation can determine the center’s future competitiveness. Success at this stage is crucial for data centers that are searching for reliable and scalable energy at an affordable price. Owners and operators must have a thorough understanding of the local power utilities and their capacity during the negotiation stage.
Waiting until the final step in this process to secure green power will be substantially increase challenges as avenues to reduce risk and cost narrow. As accessibility to renewable energy becomes increasingly important for data centers, it is incumbent on owners and operators to make this consideration a priority during the decision-making process. Reaching a utility agreement that includes cost-effective green energy procurement often means that owners and operators should plan for this as early as the strategic planning stage.