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Utility board delays decision on data‑center partnership, asks staff for two‑week financial analysis
Summary
The Office Building Board discussed a proposed data‑center partnership that would require cities to supply shared megawatts to a Chris County development; members raised concerns about a 10‑year commitment, a proposed 50/50 revenue split and uncertain generation risks and voted to pause for two weeks while staff models financial scenarios.
The Office Building Board paused consideration of a data‑center partnership on Aug. 14, 2025, asking staff to provide detailed cost and revenue scenarios before committing city power capacity.
Board presenter Jacobs said the state has “about 7,000 megawatts of potential data‑center service” and described a proposal from a developer in Chris County that would phase in an 80‑megawatt load and ask participating electric cities to supply roughly 50 megawatts beyond a 30‑megawatt host commitment. Jacobs said MEAG is planning roughly 1,200 megawatts of combined‑cycle generation for some of the state’s data‑center demand.
Why it matters: any long‑term subscription would reduce the city’s available excess power, affect wholesale revenues and expose Albany to contractual price and supply risks tied to generation dispatch and future regulatory changes.
Board members pushed staff for specifics before binding the city. Several members warned that a 10‑year term was risky if local demand or generation conditions change. One member summarized the concern: committing long term could lock Albany into a split‑revenue arrangement while other communities later offer more favorable deals.
Jacobs told the board the initial host city would retain 100% of the revenue tied to its committed portion and participating cities would receive the remaining portion split as described in the presentation. The board also discussed that the city currently reports roughly 18 megawatts of excess capacity, with 5 megawatts already committed under an existing Robertsdale/Robertsville arrangement.
Action taken: Jacobs moved — and the board seconded — a motion to continue negotiations and defer a final decision for two weeks while staff, including ECG/Electric City partners, prepares comparative financial scenarios (different subscription levels, projected revenues under a 50/50 split, and sensitivity to generation‑dispatch changes). The motion passed unanimously.
Next steps: staff will return with a written analysis of the revenue splits, the expected payments the city would make and receive under multiple subscription amounts, clarification about the term lengths being requested, and any contingencies tied to Shearer or other dispatchable generation resources. The item remains open and the board did not authorize a long‑term commitment at this meeting.
