Data centers are electricity hogs; agreement aims to prevent costs being passed on to consumers
Nov 25, 2024
FORT WAYNE, Ind. (WANE) Back in October, Citizens Action Coalition (CAC) called for the Indiana General Assembly to pass a moratorium on the construction of new data centers in the state over concerns regarding their use of electricity.
Data centers, like the one Google is building in Allen County and one being built by Amazon Web Services (AWS) west of South Bend use enormous amounts of electricity. CAC cites an Indiana Michigan Power (I&M) forecast that indicates by 2030 data centers it supplies electricity to will use more power than the amount used by all 6.8 million Indiana residents combined.
To ensure the costs of running those data centers aren't passed along to consumers, I&M announced Friday it has reached an agreement with Google, AWS, Microsoft, CAC, the Indiana Office of Utility Consumer Counselor, and the Data Center Coalition.
According to I&M, "The settlement will require new large load customers, including data centers, to make long-term financial commitments proportional to their size to ensure the costs to serve these customers are reasonably recovered from the customer, and not passed on to existing customers. These investments will support the ongoing grid modernization for the benefit of all customers."
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The companies involved, AWS, Microsoft, and Google, have each agreed to provide an annual contribution of $500,000 for five years to the Indiana Community Action Association (INCCA), which provides various programs to support low-income Hoosiers once those companies begin taking service in the I&M service territory.
“This settlement includes significant protections for I&M ratepayers as these large new loads come online in Indiana and provides for increased transparency into the energy needs and impacts of these new customers," said Kerwin Olson, CAC Executive Director. "Additionally, the contribution to INCAA will enable meaningful assistance and support for low-income Hoosiers in managing their monthly energy bills, including weatherization services to make homes more efficient, healthier, and safer.”