Data Center Q&A part 2: How will the facilities really impact power bills?

Proposals to develop at least five data centers in New Castle County, Delaware, have triggered significant political mobilization and concerns over the regional power grid's capacity and potential hikes in electricity costs. Spotlight Delaware hosted a panel discussion at Wilmington University in Dover to address these issues, featuring Delaware Public Advocate Jameson Tweedie, former Virginia Energy Director Glenn Davis, and Wohlsen Construction VP Jeffrey Sturla. Jameson Tweedie highlighted that data centers could impact power reliability, transmission, distribution, and energy costs. He stated that while transmission costs are socialized regionally, local impacts in Delaware could lead to concentrated costs if infrastructure investments are needed. Tweedie also noted that Delmarva has proposed that data centers bear the responsibility for distribution infrastructure costs, potentially preventing these costs from being socialized. Expert consultants' analysis, submitted to the Public Service Commission, indicated that 1.2 gigawatts of data center development in Delaware could lead to a 9% increase in locational marginal prices statewide, potentially soaring to an 82% increase at 2.4 gigawatts, which Delmarva is currently studying. The discussion also touched on environmental concerns, particularly emissions from backup generators. Glenn Davis argued that generators historically run very infrequently and that the grid situation is being addressed by PJM, governors, and the White House. However, Tweedie countered that if grid reliability worsens or if data centers are required to run generators during price spikes to alleviate grid strain, emissions could become a significant local problem, especially in residential areas, noting that not all developers use efficient 'Tier 4' generators. Jeffrey Sturla offered a contrasting example from a project in Lancaster City where his developer implemented a community benefits agreement, a $20 million fund, 100% clean power, strict noise limits, and minimal water usage, demonstrating that data centers can be developed responsibly. The panelists also discussed how legislative actions, such as mandating demand response, could inadvertently force data centers to rely more on backup generators, leading to increased emissions.