Levan staff say small data-container will buy excess power; attorney reviewing final contract

Levan town staff updated the council Aug. 25 on a proposed small, containerized data center that will operate on the town—s excess electrical capacity. Staff said the unit will be a container-sized installation (not a permanent brick-and-mortar building), will not use town water, and will take excess power when available under terms the town will set.

Councilors and staff described the commercial arrangement as follows: the operator will purchase power from the town when Levan has surplus capacity, must leave a safety cushion so the town does not exceed transmission limits, and will be required to reduce or stop consumption if the town—s usage approaches contractual thresholds. Staff said the town is not paying for transformers or construction; the operator purchased specified equipment. The town attorney is reviewing the final contract.

Staff and council members projected the deal would produce recurring net revenue for the town (staff cited an estimated $20,000–$30,000 per year after expenses, as discussed in the meeting). Councilors emphasized that the operator will not receive unlimited power: the contract will limit usage so the town does not incur transmission penalties and so that municipal customers are not affected.

Why it matters: For a small town with limited growth in rate base, selling surplus electric capacity is a way to generate revenue without raising property taxes. Councilors said they conducted a lengthier review because of public concerns about water use and noise at other, larger data centers, and they wanted contractual safeguards on usage and noise.