Data center to put up $250k for studies in agreement approved by HW&L
The Hope Water & Light Commission approved an agreement requiring Vinco/Vastera LLC to pay an estimated $250,000 for studies evaluating whether the utility can supply a proposed data center in Hope. The vote advances the project into due diligence but does not approve construction, a property sale or an interconnection agreement. The studies will assess grid capacity, while the utility continues discussions with SWEPCO and alternative power suppliers about serving the facility's roughly 40-megawatt demand.
The Hope Water & Light Commission approved a Cost Contribution Master Agreement and related work order for Project VIN, requiring the company proposing a data center in Hope to cover approximately $250,000 in electrical-system studies. The studies will determine whether HWL’s transmission and distribution infrastructure, including substations and transformers, can handle the proposed facility’s load and what upgrades would be necessary. Commission Chairman Lester Sitzes III and Co-Manager Russell Cornelius emphasized that the action does not authorize construction, a property sale or an interconnection agreement.
The project is being developed by Vinco/Vastera LLC, represented locally by data center developer Hobie Smith. The proposed facility would occupy about 20 acres of an 89-acre industrial-park tract owned by HWL, include a roughly 130,000-square-foot building and require about 40 megawatts of electricity, with operations targeted for the first quarter of 2028.
HWL is also evaluating whether its wholesale supplier, Southwestern Electric Power Company, can provide the additional capacity. SWEPCO has indicated that the extra power may require separate pricing and may not be available by the proposed operational date, prompting HWL to consider the Grand River Dam Authority and other supply options. The commission approved the study agreement without opposition, moving the proposal into a study and due-diligence phase.