Albany utility board delays decision on joining regional data-center power deal

The Albany Utility Board on Aug. 14 heard a presentation about a regional data-center project and voted to delay any commitment while staff gathers further analysis.

Mister Jacobs, who introduced the opportunity, said the state faces large new data-center demand (he cited roughly 7,000 megawatts statewide) and that one nearby host (identified in the presentation as “Chris County”) has about 600 acres rezoned and is proposing an initial 80-megawatt phase. Jacobs said the host intends to commit 30 megawatts and asked other electric cities in the MEAG group to subscribe for the remaining 50 megawatts; the recommended revenue split in the proposal was 50% to the host and 50% split among participating cities.

Board members pressed staff for more detail. Several members said Albany currently shows about 18 megawatts of excess capacity but has already committed 5 megawatts under an earlier arrangement (identified in discussion as the Robertsville commitment), leaving an unsettled balance. Concerns included contract length (presenters said some agreements contemplate 10-year terms), exposure if local dispatchable generation changes status, and whether future competing offers from other cities could alter the economics.

The board voted to have staff and ECG (Electric Cities/MEAG representatives) return with more precise financial scenarios and contract options. Mister Jacobs said staff will request negotiation flexibility from the project host and expects to report back in about two weeks.

The board took no binding action to sell or purchase power at this meeting; the question was explicitly deferred. Additional analysis the board requested includes revenue-share modeling at different subscription levels, the cost implications of fixed-price supply versus market sales, and contract-term sensitivities.

The board is scheduled to revisit the item after staff provides the requested information.