Data centers contribute revenue to the electric system, and a portion of that revenue is shared with customers through approved rate mechanisms. Follow the journey of bringing a large customer online to see how.
The journey of customer benefits
How it works
A data center plugs into the MDU grid. The data center is responsible for purchasing their own energy from the market directly. Through approved rate mechanisms, a credit from revenue generated by the data center flows back across the entire customer base.
A large customer arrives
A single, large user of energy, like a data center, connects to the MDU electric grid.
Revenue is generated
The data center energy usage generates revenue across fuel, power and transmission costs.*
Spread through approved rates
A portion of revenue is returned to customers through fuel cost adjustments and transmission revenue mechanisms.
Credits land at home
The result is a measurable credit for other MDU customers.
*Fuel, power and transmission costs include the cost of resources to produce electricity, the cost to produce electricty and the cost to move electricity across the grid.
Why this works
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Data centers help spread fixed system costs across far more usage.
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Their revenue helps offset the everyday expenses of running the grid.
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Those benefits are returned to customers through approved rate designs.
All states are not equal
Each state regulates utilities differently, so the way data center revenue reaches customers takes a different shape in North Dakota, South Dakota and Montana. Large energy users like data centers do not increase customer rates. They pay their own costs and their usage helps offset costs for others.
Savings vary by year based on usage, rates and regulatory mechanisms in each state. Unless otherwise noted, all figures reflect regulator-approved rate structures. Examples shown are averages; individual bills may vary.