UCM’s Rate and Regulatory Expertise Can Help Data Centers Nationwide to Reduce Electricity Costs.
The United States Data Center Market size is expected to grow from USD 18.10 billion in 2023 to USD 28.46 billion by 2028, making the industry one of the fastest growing new categories of large utility customers. Data Centers require tremendous amounts of electricity, and have usage and demand profiles unlike most other large customers. With these new complexities, electric utilities often fail to comply with every complex billing regulation when sending a Data Center a bill. Thus, billing overcharges are common and go unseen. UCM is changing the way electric utilities interpret and apply their own rates to this unique new customer group, bringing overcharges to light, and securing bill savings and refunds for Data Centers nationwide.
Data Centers; Challenges for an emerging, different type of large utility customer.
California Data Centers CIAC Project; A unique savings opportunity.
California data centers can benefit from UCM’s efforts with the California Public Utilities Commission (CPUC) and the California Air Resources Board (CARB) to make the “California Industry Assistance Credit (CIAC)” available to qualifying locations. Currently, thousands of large utility customers that meet program guidelines and submit the necessary documentation qualify for the credits, but Data Centers are not eligible. UCM expects to change that and secure the CIAC for eligible sites.
The CIAC is applied each April to the electricity bills of qualifying customers, and can be significant. While the CIAC amount will vary depending on several factors, UCM estimates that a Data Center with 1,000,000 annual kwh could receive a credit of about $50,000 per year. A facility with 2,000,000 annual kwh usage could expect twice as much.
Contact UCM’s Greg Normart today at (559) 493-5519 gn@utilitycostmanagement.com to learn more about how the CIAC can reduce electricity costs for your Data Center.