Why data centers are part of the solution for our power grid | Opinion
The CEO of Benton Rural Electric Cooperative argues that data centers should be seen as valuable partners in modernizing the power grid. He suggests their significant capital investment can help upgrade aging infrastructure and reduce the financial burden on residential ratepayers. The cooperative has policies in place to ensure data centers cover their own infrastructure and power supply costs.
The CEO of Benton Rural Electric Cooperative, Bart Phillips, shared his opinion in the Tri-City Herald, presenting data centers as a potential solution for modernizing Washington's power grid. Phillips addressed concerns raised by Rick Dunn, General Manager of Benton PUD, regarding power supply constraints and the Clean Energy Transformation Act (CETA), agreeing with Dunn's assessment.
However, Phillips contended that rather than being a threat, data centers offer an historic opportunity to invest billions in strengthening and expanding the grid. He highlighted that the original Pacific Northwest grid was built with the financial weight of large industrial customers, and data centers represent the modern equivalent, providing necessary capital for grid upgrades that would otherwise fall on residential ratepayers. Phillips cited a study by Energy + Environmental Economics (E3) which found that data centers do not increase residential electricity rates; instead, their predictable, high-utilization loads generate surplus revenue for utilities, offsetting costs and creating downward pressure on rates.
Phillips acknowledged the difficulty of powering always-on data centers with intermittent renewables and the potential need for nuclear power. He emphasized that tech companies are major funders of advanced clean energy technologies like small modular reactors (SMRs). He detailed Benton REA's hyperscale policy, which ensures data centers pay for all project-specific infrastructure, system upgrades, and power supply, thereby protecting existing members and the BPA federal system. Phillips concluded that by adopting robust partnership frameworks, communities can leverage private investment to build a more reliable, carbon-free grid.