Duke Energy's new 2 GWs of US data centers to include minimum take agreements, CFO says
Adds context, quote from CFO
NEW YORK, Nov 7 (Reuters) -Duke Energy will include take-or-pay provisions in its agreements for two new gigawatts of U.S. data centers in its territory, as the utility continues to hammer out details of its power agreements with the businesses, Duke's chief financial officer told Reuters on Thursday.
As the technology industry's race for electricity to power technologies like generative artificial intelligence drives up U.S. power demand, electric utilities have proposed new contract structures to protect the general public from higher power bills caused by the data center build-out.
Contracts for datacenters and other Duke customerswith power demand at a single site of more than 100 megawatts would require payments for a minimum amount of electricity regardless of usage, CFO Brian Savoy said, adding that any agreements would need to be approved by regulators.
The new data center customers, who have not been identified, have signed agreements, identified land they would use, but have not finalized power contracts with Duke.
"Now we're negotiating over the next few months on what the contracts would look like," Savoy said.
Discussions with the data center operators include whether they would co-invest in infrastructure needed for the centers and whether there would be a special tariff rate to try to safeguard the general public from rising power bills.
Reporting by Laila Kearney. editing by Franklin Paul
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
