Data Centers: A Guide to Common Questions

CIN Admin
CIN Admin
  • Updated
Resource Type Toolkit
Author / Source Ladlee, Brockett, Ollendyke, Beresnyak, Svetz, Yencha, Baschieri (Penn State Extension; Oregon State University Extension Service)
Publication Date April 2026
Location Framework applicable nationally
Initiative Type Policy, Partnership
Project Complexity Beginner
Recommended For Board, Staff, Community Organizations

View Guide

Estimated reading time: 15 minutes


Why This Matters for Rural Electric Co-ops

This Penn State Extension guide offers a neutral, structured list of questions to ask about a proposed data center. It covers power, water, land use, jobs, zoning, taxes, and long-term accountability. It neither supports nor opposes development, which makes it a useful starting point before a co-op commits to serving a very large new load.

The guide is written for communities, but many of its power questions are ones a co-op should answer for itself first. These include demand over 20 years, who pays for substations and transmission upgrades, backup generation, and rate impacts on residential and commercial members. Working through them early can help a co-op spot stranded asset and cost shifting risks, set clear expectations with developers, and speak with confidence when local officials and members start asking.


Key Takeaways

› Power questions span four time horizons (0 to 5, 6 to 10, 11 to 20, and 21+ years), pushing beyond a developer's initial load estimate.
› Asking who pays for grid upgrades, and what binding agreements prevent future cost shifting, protects existing members from absorbing data center infrastructure costs.
› Efficiency metrics (PUE, WUE, CUE) give co-ops a common language to compare proposals and test whether claims reflect real operating conditions.
› The guide names electric utilities as early stakeholders and urges clear policies on NDAs and which resource data will always be disclosed publicly.

Implementation Considerations

  • Regulatory or Governance Considerations: Boards should decide in advance how they will handle developer NDAs, what information stays confidential, and which commitments must be enforceable rather than aspirational.
  • Staffing or Technology Requirements: Answering the power and rate questions well requires load forecasting, system planning, and cost of service analysis. Smaller co-ops may need support from their G&T, statewide association, or outside consultants.
  • Time-Sensitive Information: The guide is described as a living document and may change. Its reference to small modular nuclear being projected by 2035 is an estimate that could shift.

View Guide

Estimated reading time: 15 minutes

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