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Stop Bad Data Centers

Exposing AI Data Center Threats and Harms

Gateway 2

Power & Utilities

Stop a bad data center from jacking up your utility bills

Data centers need massive amounts of electricity; often enough to power a small city. One of the approvals developers need to move forward is an agreement with the local utility company to meet those power needs. There can be billions of dollars at stake in the form of grid upgrades like new substations, transmission lines, and additional power generation. These agreements have to be approved by the state utility regulator, typically called a Public Utility Commission (PUC).

Communities can advocate for the things that are important to them in the proceedings where the details of these agreements are evaluated and subject to approval.

The proceedings can cover things like impact on rates, type of energy used to power the data center, how the costs for the grid upgrades will be allocated between the data center and utility customers, and how to ensure agreed upon terms will be enforced. Communities have successfully stopped or delayed projects in these proceedings by challenging what is presented by developers and utilities with their own ideas and experts.

The power gateway creates real leverage. The terms of the agreement to power data centers can make or break a project. By engaging in state utility regulatory proceedings, communities and coalitions have the opportunity to define the parameters of these arrangements in a way that aligns with their criteria and advocate for benefits like community investment or funding for bill assistance programs.

If the terms do not align with what communities want to accept, they can advocate that the agreement be rejected to stop the project from moving forward.

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Key Targets (Gatekeepers)

  • Public Utility Commissioners and staff: state utility regulators responsible for setting rates and terms of service
  • Consumer advocates: entities that represent consumer interests in PUC proceedings
  • Utility representatives: those advocating on behalf of the utility in PUC proceedings
  • Regular intervenors: other participants like environmental or business groups that are active participants in PUC cases
  • Impacted communities: those exposed to the impacts of the project who want to join the advocacy

Policy Interventions

  • Cost protection: ensure project developers – not other customers – pay the full cost of their impact on the energy system
  • Demand public hearings: require utilities and/or the PUC to hold forums for the public to learn about the project and express views and concerns
  • Conduct discovery and analysis: use the PUC process to ask questions and challenge information presented and use data to support alternatives
  • Define standard terms: participate in large load tariff development proceedings to advocate for terms that will apply to all data centers
  • Build coalitions: unite those with shared interests in advocacy efforts to pool resources and assert pressure on priority issues

Gateway Intervention

Campaign Playbook

Each campaign will have its own unique challenges and context. We are here to help talk through steps. The steps in this guide are informed by community victories so we aren’t reinventing the wheel. Contact us to talk about your campaign.

1. Learn how to identify and intervene in case(s) about the project

Subscribe to notices on filings made at the PUC to identify when a related case has begun. Identify the process to become a party (“intervene”) and determine whether to join a case depending on priorities and resources or to pursue other types of engagement. Follow which other people or groups intervene or participate, find out what their objectives are, and reach out to those who may be aligned.

2. Define critical issues and/or “red lines” to guide advocacy efforts and engage

What are the most important aspects of the project for you? Is it electricity rates? Environmental pollution/justice? Carbon footprint? Amount and type of community benefits? Are there terms that would allow you to support, or at least not object, to the project? Will you demand a specific mix of generation to power the facility? Are you a no under all circumstances? Be clear on how you want to influence the outcomes and what things you will not accept. Use this information to choose a forum and find allies, lawyers, and technical support to bolster your advocacy effectiveness.

3. Coordinate across other aspects of the campaign (i.e. other Gateways, public pressure efforts, legislative advocacy, etc.)

Communication across the various aspects of campaigns is important to ensure you’re working together and not unintentionally at odds with each other. Though PUC proceedings tend to be legal and technical and less visible, coordinated pressure can be applied across other branches of government (Governor’s office and legislature), on related things happening at the local or federal level, and through media strategy to increase public engagement.

Valuable Allies

You don’t need to take on bad data centers alone. There are organizations and experts who can help. Explore the Network to find other leaders, and discover organizations in the Alliance Map.

Utility Law Attorneys: Navigate PUC procedures and file formal interventions

Grid Engineers: Provide credible technical critiques of load studies

Consumer Advocates: Champion ratepayer interests in cost allocation

Energy Economists: Quantify rate impacts and alternative cost scenarios

Environmental Justice Groups: Highlight disproportionate impacts on vulnerable communities

Gateway 2: Power & Utilities

Resources & Documents

Essential tools and resource for this gateway.

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