Pacific Power to charge Oregon data centers for energy infrastructure costs

Pacific Power has reached an agreement to assign the costs of new energy projects and infrastructure directly to data center operators in Oregon. This follows negotiations with the Oregon Public Utility Commission, the Citizens’ Utility Board, and various advocacy groups.

The deal is being implemented under Oregon’s POWER Act, which requires monopoly electric utilities to establish a separate rate class for data centers. This measure aims to prevent other customers from subsidizing the high energy demands of server farms, which now account for nearly one-quarter of all retail electricity sales in the state.

The Oregon Public Utility Commission is expected to approve the plan on November 13. The Data Center Coalition, an industry group representing tech companies, is expected to appeal the decision. This follows a similar situation with Portland General Electric, where the state utility commission rejected an appeal regarding how costs are assigned based on peak demand.