Data Centers
The Buzz About Data Centers
With growing attention on data centers and electricity use worldwide, DMEA CEO Jack Johnston shares how the cooperative approaches new large energy loads—prioritizing reliability, financial responsibility, and protecting the interests of its members and communities.
Growth, Responsibility, and Protecting What Matters Most
Jack Johnston, CEO
You may have seen worldwide media coverage lately about data centers and the growing demand for electricity. It’s a topic that naturally raises questions, and I want to take a moment to address it directly and transparently with you—our members.
DMEA has served a data center since 2022 and others in the past, albeit on smaller scales than you may have read about recently. We have also served large industrial loads, so we remain ready and prepared to evaluate new loads regardless of scale. As your cooperative, our responsibility is clear and unwavering: our members come first. That principle guides every decision we make. Any large load is evaluated carefully, deliberately, and with the same standards we apply across the board.
We realize there may be concerns about the unknown long-term impacts of data centers. Regardless, our approach will be thoughtful and measured. We assess capacity, timing, system reliability, cost responsibility, and risk before moving forward with any major load, and we do so with strong oversight and planning. This is to ensure existing and future members are not put at a financial or operational risk.
Growth can bring opportunity, and we exist to serve our communities, but we will always manage our resources responsibly and align with our cooperative values. We will never compromise service quality or shift undue financial burden onto our membership.
As the energy landscape continues to evolve, we remain committed to clear communication, prudent decision-making, and putting members first—today and for the long term. Thank you for your trust in DMEA.
Is DMEA prepared to serve large data centers?
Yes. DMEA plans for long-term system reliability and regularly evaluates its electric infrastructure to ensure it can safely and reliably serve a wide range of members — including large industrial loads like data centers. DMEA’s approach ensures that serving large customers does not compromise reliability, safety, or service quality for homes, farms, and businesses across our service territory.
Has DMEA served data centers before?
DMEA has served a data center since 2022 and others in the past, albeit on smaller scales than you may have read about recently. We have also served large industrial loads, so we remain ready and prepared to evaluate new loads regardless of scale.
Who pays for the construction of electric infrastructure to serve a new data center?
Under DMEA’s Line Extension Policy, all new members are responsible for the costs associated with constructing the electric infrastructure needed to serve their facility, including design and engineering fees. Existing DMEA members do not pay for these upgrades.
What protections are in place to ensure members are not financially impacted?
DMEA will not shift undue financial burden onto its membership. Infrastructure upgrades required to serve large loads are identified in advance and funded by the requesting member. Decisions are made with strong oversight and long-term planning to protect service quality, affordability, and system reliability for all members.
Do data centers pay the same electric rates as homes or small businesses?
No. Data centers are large industrial customers and use significantly more electricity than a typical home or small business. Because of this, the specifics of their contracts are designed specifically for high-consumption accounts. Similar to how we don’t share details about individual residential accounts, we don’t disclose the specifics of these contracts.
Will DMEA be involved in approving or permitting a data center?
No. Land use, zoning, and permitting decisions are made by local governments.
How does DMEA evaluate whether to serve a large data center or industrial load?
For any load in DMEA’s certificated territory we have an obligation to serve if requested. Any large load is reviewed carefully and deliberately. DMEA evaluates system capacity, timing, reliability impacts, cost responsibility, and potential risk before moving forward. This process includes engineering analysis, regional transmission planning reviews, and financial safeguards to ensure existing and future members are not exposed to operational or financial risk.
How much electricity do data centers use compared to a typical member?
Data centers are large industrial customers and use significantly more electricity than a typical home or small business. Because of this, the specifics of their contracts are designed specifically for high-consumption accounts. Similar to how we don’t share details about individual residential accounts, we don’t disclose the specifics of these contracts.
Would a data center in DMEA’s territory cause electric rates to increase for other DMEA members?
Generally, no. In fact, the additional revenue from data centers could actually help cover system costs and supports rate stability.
Will data centers strain the electric grid or impact reliability?
All large-load projects are thoroughly reviewed by regional transmission operators before they are approved. These studies ensure that new loads will not negatively impact grid reliability.
Can you support a large hyperscale data center today?
We are here to serve members of all sizes; however, a hyper-scale data center requires significant infrastructure planning and capacity development. Serving a project of that scale would require additional time, engineering, and investment to ensure we can reliably and responsibly meet the required power demands. We are committed to thoughtful growth that aligns with the long-term interests of our members and community.
Was Elevate developed to attract data centers?
No. Elevate was built to serve the broadband needs of our local communities — including homes, businesses, schools, and healthcare providers. DMEA’s investment in fiber infrastructure was driven by the goal of improving connectivity, reliability, and economic opportunity for the members we serve. While Elevate provides robust broadband service across the region, any large-scale commercial project requiring dedicated capacity or network expansion would be responsible for the cost of necessary upgrades to support its broadband needs.