News Release

Utilities reshape rate structures amid data center boom

New tariffs cut speculative proposals, boost savings for flexible data center operators

byEnverus

CALGARY, Alberta (Nov. 25, 2025) Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy SaaS company that leverages generative AI across its solutions, is releasing a new report analyzing how utilities across the U.S. are responding to a surge in data center interconnection requests and the evolving rate structures designed to ensure reliable cost recovery.

Utilities in Tier 1 cloud markets are tightening interconnection processes and implementing new tariffs, drastically reducing speculative data center proposals and resulting in potential annual savings of over $20 million for operators able to curtail load or adopt real-time pricing strategies.

“The rapid growth in data center demand is forcing utilities to rethink rate structures and interconnection requirements. Our analysis shows that targeted tariffs not only ensure cost recovery from large loads but also help filter out speculative projects, creating a more stable and predictable grid environment,” said Adam Robinson, associate at EIR.

Key takeaways:

  • Utilities analyzed 94 large-load tariffs from 36 providers, revealing diverse approaches to demand charges, service fees and interconnection costs.

  • New rate structures, such as AEP Ohio’s data center tariff, can add nearly $10 million in first-year costs for a 100 MW facility but have successfully reduced connection requests by half.

  • Operators capable of curtailing load or utilizing real-time pricing (RTP) can save more than $20 million annually for a 100 MW data center.

  • Behind-the-meter (BTM) generation is becoming a key strategy for developers to secure reliable power and bypass grid delays.

  • Rate components now include longer contract terms, ramp rates, and stricter credit and collateral requirements to screen out non-viable projects.

EIR’s analysis pulls from a variety of products including Enverus PRISM®, Enverus FOUNDATIONS® and Instant Analyst™.

You must be an Enverus Intelligence® subscriber to access this report.

EIR research reports cannot be distributed to members of the without a scheduled interview. If you have questions or are interested in obtaining a copy of this report, please use our Request Media Interview button to schedule an interview with one of our expert analysts.

Additional Resources:

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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

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