Across the country, data centers have been making headlines as large users of electricity. These facilities house computer servers and equipment that power the digital world we rely on every day — from online banking and shopping to streaming video and cloud storage. As your cooperative, we understand that when members hear about businesses using large amounts of electricity, a natural question arises: What does this mean for me and my electric bill?
The short answer is this: Large power users are a benefit to Nodak Electric Cooperative members and the broader membership of Minnkota Power Cooperative, not a burden. In fact, these facilities strengthen our financial position and help us keep rates stable. Let me explain why.
Our generation and transmission system — built and maintained by Minnkota Power Cooperative and the other members it serves — was designed to meet the needs of all of us on the coldest days of winter and the hottest days of summer. That means there is a significant amount of capacity in place to reliably serve our communities year-round. Most of the time, however, we are not using that full capacity.
Data centers are a good fit for that unused capability. They operate around the clock and can absorb excess capacity without jeopardizing the power we all rely on. Instead of sitting idle, those resources are put to productive use.
Every utility has fixed costs — the expenses of poles, wires, substations, generation plants, and transmission lines that must be in place whether we sell a little electricity or a lot.
Traditionally, those costs are recovered through the bills paid by our members.
When a new large power user like a data center comes online, they help carry that responsibility. The additional revenue they bring in goes toward the same infrastructure we all use. In effect, they share in paying for the fixed costs that would otherwise fall only on our existing members. This reduces upward pressure on rates for everyone.
Serving large customers often requires system upgrades such as bigger transformers, additional substations, or new power lines. A common concern is that existing members might have to shoulder those costs. That is not the case here.
At Nodak Electric, our stance is clear: Large new loads of any type cover the capital costs necessary to connect and serve them. That means when we invest in infrastructure for a large new load, it is not coming out of your pocket. Those expenses are built into the rates and contracts specific to the facility.
The benefits of this approach are not just theoretical — they are happening right now. A large new data center was recently announced in another part of the Minnkota system. Like any large new load, it will bring millions of dollars in additional revenue that helps pay for the shared generation and transmission assets that serve all of us. That means members across the Minnkota system, including here at Nodak, share in the long-term benefits.
Beyond the financial benefits, data centers bring stability to our cooperative. Their predictable, around-the-clock demand helps us balance our system more efficiently. They also tend to be long-term partners, committing to decades of service. That kind of stability translates to more reliable revenue, which strengthens the cooperative for everyone.
It’s also worth noting that the presence of data centers can spur economic activity in our region. While they don’t employ as many people as a manufacturing plant, they support jobs in construction, maintenance, and related services. They also contribute to local tax bases, which benefits schools and communities.
At Nodak Electric Cooperative, our mission has always been to provide safe, reliable, and affordable power to our members. Every decision we make is guided by that commitment. By welcoming new large loads, we are not straying from that mission — we are reinforcing it.
Instead of seeing higher rates, our members benefit from additional revenue streams that help us keep costs steady. For many years, we were able to hold our rates stable, even as the costs of materials, labor, and energy have risen. The contributions of large customers like data centers help us maintain that record.
In short, data centers are not driving your electric bill up. Quite the opposite — they are helping us hold the line on rates while strengthening our cooperative for the future.
As always, we will continue to keep you informed and make decisions with your best interests at heart. Thank you for being a member of Nodak Electric Cooperative.