Brett Guthrie Weighs The Pros And Cons Of Sharing Data Center Costs With Small Communities

During a House Energy Committee hearing, Representative Brett Guthrie (R-KY) engaged with Secretary Moore regarding the financial strain on small, rural communities in Kentucky and Vermont due to aging water infrastructure. Representative Guthrie highlighted that many water plants and lines are at their breaking point, with replacement costs around $40 million for a single plant, a sum that is astronomical for communities with as few as 400 connections.

He suggested that data centers, while significant water users, could potentially offer a solution by providing a new load to help share maintenance costs and lower per-person rates for local residents. Secretary Moore acknowledged that data centers could dwarf the water usage of small communities, making it a complex issue, but agreed that a larger user base generally helps reduce the average cost for individual users due to fixed costs. The discussion also touched upon improving cybersecurity for water systems, with Secretary Moore noting Vermont's efforts through an apprentice program with the US Department of Agriculture Rural Development to address an aging workforce in public utilities.

Mr. Bradley from the committee concurred with Representative Guthrie, adding that large users like data centers, manufacturing plants, or agricultural enterprises provide scale, which is crucial for infrastructure costs. He referenced Indiana's electric utilities, which reportedly reduced average charges by 5% due to data centers covering more fixed costs. Both officials emphasized the need for strategic investments in cybersecurity and workforce training for water operators.