Officials: grid upgrades for big data centers can take years; developers pay for infrastructure
Staff and the City Attorney told the Council that electrical infrastructure and utility upgrades for large data centers can take years; developers typically fund necessary grid work after signing agreements with utilities such as Xcel Energy and may use milestone-based contract terms instead of strict completion dates.
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Officials warned the Council that providing sufficient power for large data centers frequently involves multi-year utility work. City staff explained that Xcel Energy’s process is multi-step and that recent legislation requires utilities to provide consumption and rate plans for large users, but upgrades to add capacity can still take significant time. Rachel Leonard said "Xcel Energy's process is a multi-step process," and that developers traditionally fund necessary infrastructure once agreements are in place.
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