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Technology

WHEN THE DATA CENTER COMES.

By charles duggan

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Share link
https://covver.com/magazine/sawdawgs2-2/untitled-magazine-18
Published
Oct 12, 2026
Updated
Oct 14, 2026
Pages
12
Language
English

More in this magazine

  • AS IT TURNS OUTISSUE 01 THE DATA CENTER BOOM
  • EDITOR'S LETTEREditor's Letter A boom is reshaping land, power and local economies faster than regulation can track.
  • DATA & DEMANDTHE FORECAST GAP Illustrative estimates charting the widening distance between projected data center electricity demand and utility grid capacity through 2030.
  • Page 5A residential street backs up to data center campuses in eastern Loudoun County, where housing and server farms now sit side by side. DATA CENTER ALLEY
  • INFRASTRUCTUREInside the Buildout How a hyperscale data center campus actually gets built — from site selection through permitting, power interconnection, water cooling infrastructure, and construction execution. The physical anatomy of the buildout that reshapes regional land use and grid demand.
  • Page 7The stated purpose is to help assign certain costs to the customers whose needs cause them. [L07/LE07] That is evidence of a regulatory mechanism. It is not evidence that a particular residential bill has already gone up, gone down, or been fully insulated from every effect of new demand.
  • POLICY & POWERWho Pays for the Grid As data centers multiply, utilities and consumer advocates are at odds over who should cover the cost of the transmission lines and substations needed to serve them.
  • ACCOUNTABILITYThe Accountability Tool Five questions residents, journalists and local officials can put to data center developers and utilities before the next approval vote.
  • ON THE RECORDInfrastructure decisions made quietly today will shape electricity costs and land use for a generation. AS IT TURNS OUT — ISSUE 01
  • AS IT TURNS OUTAs It Turns Out is a quarterly investigation into the systems that quietly shape modern life — the land, power, and policy decisions made far from public view but close to every bill we pay. Next issue: beneath the servers. We turn to the water powering the boom, tracing how hyperscale cooling systems are reshaping regional water supplies, utility contracts, and the communities that depend on both.
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POLICY & POWER

Who Pays for the Grid

As data centers multiply, utilities and consumer advocates are at odds over who should cover the cost of the transmission lines and substations needed to serve them.

BY THE EDITORIAL DESK very new data center campus eventually needs more than land and a lease; it needs power delivered at scale, and often that means new substations and transmission upgrades. The question of who pays for that infrastructure has become one of the most contested issues in utility regulation, according to filings in several states with heavy data center growth.

Regulators in a number of jurisdictions are now considering new tariff structures specifically for large, high-density customers like data centers, according to public commission dockets. Observers caution that outcomes vary significantly by state, utility structure, and the specific terms of interconnection agreements, and that no single national standard currently governs the allocation of these costs.

E Utility companies generally argue that large customers requesting significant new load should bear the costs tied directly to their service, through special tariffs or contribution-in-aid-of-construction charges. Representatives of several utilities have said in regulatory proceedings that this approach protects other ratepayers from subsidizing infrastructure built primarily to serve a single large customer.

Consumer advocates counter that utilities sometimes spread the cost of grid upgrades across their entire customer base through general rate cases, meaning households and small businesses could end up paying a share of infrastructure built to serve data centers. Advocacy groups in several states have asked regulators to require clearer accounting of which upgrades are driven by large new loads.