Data Centers

Understanding Data Centers and What They Could Mean for Our Cooperative

Data centers have become one of the most talked-about issues in the energy industry. As technology continues to evolve and demand for cloud computing, artificial intelligence, and digital services grows, communities across Pennsylvania and the nation are seeing increased interest in large-scale data center development. Because data centers require substantial amounts of electricity and infrastructure, questions have naturally arisen about what these projects are, whether they could locate in our service territory, and what impacts they might have on our electric system and our members.

This page provides information about data centers, how Claverack REC evaluates large-load requests, and the considerations involved in serving projects of this scale. We encourage members to review the Frequently Asked Questions below and watch the in-depth interview video.

As with any major load request, Claverack REC evaluates each proposal individually and remains committed to making decisions that protect the long-term interests of our members and cooperative.

Casey Wood, Vice President of Communications, C&T Enterprises, interviews Steve Brame, President & CEO, PREA/Allegheny, about data centers and what they could mean for Claverack REC.

The ability to serve a data center depends on several factors, including the facility's size, location, electric service requirements, and available system capacity. Each project would be evaluated individually based on its specific characteristics and system requirements. Distribution systems like Claverack REC's are designed to serve homes, farms, and businesses. A typical hyperscale data center can require 100–1,000 megawatts or more of electricity, far exceeding the capacity of our rural substations and distribution lines, which are typically designed to supply 5–10 megawatts.

As with any request for electric service, Claverack REC would evaluate the project's electric service requirements and potential impacts on the system. The review process could include engineering analysis, coordination with Allegheny Electric Cooperative and other relevant entities, and consideration of system capacity, reliability, costs, and long-term planning needs.

Claverack REC's longstanding practice for large-load requests is to require the requesting party to pay the costs of any necessary studies, engineering, system upgrades, or new facilities needed to serve the load. As a result, Claverack REC seeks to ensure that costs directly associated with serving a prospective large-load project, including a data center, are not shifted to existing members.

Data centers have the potential to provide economic and infrastructure benefits to a community, but they can also present challenges that must be carefully considered. The benefits and impacts vary widely depending on the size, location, and characteristics of the project. Considerations may include infrastructure needs, electric service requirements, land and water use, and other local factors. Each proposal should be evaluated on its own merits.

Claverack REC does not take a predetermined position for or against a particular type of development and evaluates each large-load proposal on its own merits. Considerations include electric service requirements, system impacts, reliability, costs, and our highest priority and responsibility: providing safe, reliable, and affordable service to our members.

Data centers are complex projects that require careful planning and appropriate infrastructure. Claverack REC's highest priority is to provide safe, reliable, and affordable service to our members. Large-load projects, including data centers, may present opportunities to generate additional revenue and support investment in the electric system. At the same time, they may present operational, infrastructure, and planning challenges. As with any large-load proposal, each project would be evaluated individually based on its specific characteristics, system requirements, and potential impacts on the cooperative and its members.

Join us for Claverack's 89th Annual Meeting:

Data Centers

Understanding Data Centers and What They Could Mean for Our Cooperative

What is a data center?

Why are people talking so much about data centers lately?

Can Claverack REC serve a data center?

How would Claverack REC respond to a data center request?

Would data centers raise rates for members?

Do data centers benefit communities?

Does Claverack REC support or oppose data centers?

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