New Ways to Power Data Centers and Other Large Energy Users

This briefing by RMI discusses the use of 'baseline' large load tariffs and 'Bring-Your-Own' (BYO) tariffs to integrate large energy users, such as data centers and advanced manufacturing facilities, into the United States power grid while mitigating risks to other ratepayers and accelerating clean energy deployment.

• Large energy users are driving electricity demand faster than existing resource planning and procurement processes in the United States can integrate new generation, leading to concerns regarding system reliability, electricity affordability, and decarbonization policies.
• States are implementing 'baseline' large load tariffs to standardize the connection of large energy users. These tariffs focus on establishing rates that account for grid impacts and reducing the risk of cost increases for other ratepayers, specifically the risk of overbuilding if the load does not materialize.
• Bring-Your-Own (BYO) tariffs complement baseline tariffs by allowing large customers to fund the development of system resources themselves. This can accelerate the deployment of power resources and provide a 'speed to power' opportunity for customers to connect to the grid earlier. A subtype of BYO tariffs, called 'Clean Transition tariffs,' restricts eligible resources to clean energy.
• BYO tariffs can reduce financial risk for general ratepayers by assigning specific resources to participating large loads rather than embedding them in the rate base. They also provide a mechanism for insulated investment in new clean energy technologies, which can drive down costs as they scale.
• Several entities have proposed or implemented BYO-style programs: PJM has a Bring Your Own New Generation Program for generators over 250 MW; Tri-State Generation and Transmission Association has a member cooperative self-supply program; Evergy Kansas includes a Clean Energy Choice Rider; NV Energy's Clean Transition Tariff was used by Google to procure an enhanced geothermal system; and Georgia Power's 2025 Integrated Resource Plan added a Customer-Identified Resource (CIR) option.

APA

RMI (2026). New Ways to Power Data Centers and Other Large Energy Users. https://rmi.org/resources/new-ways-to-power-data-centers-and-other-large-energy-users/

Chicago

RMI. New Ways to Power Data Centers and Other Large Energy Users. 2026. https://rmi.org/resources/new-ways-to-power-data-centers-and-other-large-energy-users/.

Wikipedia

{{cite report |author=RMI |title=New Ways to Power Data Centers and Other Large Energy Users |date=6 February 2026 |url=https://rmi.org/resources/new-ways-to-power-data-centers-and-other-large-energy-users/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026new, author = {{RMI}}, title = {{New Ways to Power Data Centers and Other Large Energy Users}}, institution = {RMI}, year = {2026}, month = feb, url = {https://rmi.org/resources/new-ways-to-power-data-centers-and-other-large-energy-users/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }