Will a massive data center drive up residents’ electric bills? Could its demand for power threaten reliability? And if electricity becomes scarce, who gets priority?
Those were among questions City Council members put to Xcel Energy representatives Oct. 12 during a special meeting examining the potential effects of the proposed data center development.
Xcel officials said state regulations and recently approved customer protections are designed to prevent large electricity users from shifting their costs to existing customers. They also emphasized projects of this size generally require new power generation and extensive infrastructure planning.
But while the utility sought to reassure council members, questions remained about the proposed Monticello development, including how electricity would be allocated during a major grid emergency.
City Administrator Rachel Leonard said the discussion was arranged to address recurring concerns about the proposed Edmonson Business Center campus south of 85th Street NE and east of Highway 25.
Other questions included:
- Who pays for the power?
- Does more demand mean more generation?
- What happens during an emergency?
- Could data centers lower electric bills?
The conversation (and study) is not completed…
Although Xcel officials discussed how large data centers are generally served, the electrical requirements for Monticello’s proposed development have not been finalized.
Andre said the project is in the facility study stage, which Xcel expects to complete by the end of 2026. The study will produce preliminary estimates of necessary infrastructure, costs and timelines.
Council member Charlotte Gabler questioned how Xcel could plan for the project when its eventual end user has not been publicly identified.
Andre explained that the utility begins with anticipated electricity demand supplied by the developer, using factors such as acreage, building plans, zoning requirements and experience with similar projects.