New Ways to Power Data Centers and Other Large Energy Users

The briefing proposes Bring-Your-Own (BYO) tariffs to allow large energy users, such as data centers, to fund their own power resources to speed up grid connection and reduce financial risks for other ratepayers. It distinguishes these from 'baseline' tariffs and highlights specific examples of BYO and Clean Transition programs in the US, including initiatives by PJM, NV Energy, and Georgia Power.

• Baseline large load tariffs are designed to establish rates that account for the grid impacts of large loads and to mitigate the risk of cost increases for other ratepayers, specifically the risk of overbuilding if the expected load does not materialize.
• Bring-Your-Own (BYO) tariffs allow large electricity customers to fund system resources through procurement pathways that run alongside existing utility planning or wholesale markets, enabling them to receive electricity under different rates and terms.
• BYO tariffs can provide 'speed to power' by allowing grid operators to accelerate interconnection for eligible load and generation, and by enabling third parties to construct resources in parallel with utility efforts.
• BYO tariffs protect other ratepayers by assigning the costs of new resources directly to the participating large load customers rather than embedding them in the rate base for all users.
• Several US entities have implemented or proposed BYO-style programs: PJM's Bring Your Own New Generation Program for generators over 250 MW; Tri-State Generation and Transmission Association's Bring Your Own Resources program; Evergy Kansas' Clean Energy Choice Rider; NV Energy's Clean Transition Tariff (used by Google for enhanced geothermal); and Georgia Power's Customer-Identified Resource option within the CARES program.

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} }