CASE STUDY - DATA CENTER DEVELOPMENT

An existing data center operator was planning a major expansion at their site that required additional electric capacity. Options to provide this added capacity included:

1.  Adding additional 13kV capacity and incurring ongoing utility excess facility and standby charges.

2.  Installing a 26kV substation

The least “first” cost to the operator was the 13kV option. This option eliminated the cost of the installation of a 26kV substation but also limited any future expansion at the site without additional utility costs. An analysis was provide to the client demonstrating the savings of 26kV vs. 13kV as well as the added benefits of reliability and added capacity for expansion. The client, seeking to avoid the capital expense, wished to pursue the 13kV option. It was suggested to the client to lease the 26kV station to avoid the capital expense and incur an operating expense.

The customer negotiated a lease for a third party to build, own and operate a 26kV station to supply capacity to the site. This provides the client with added capacity and improved reliability that allowed for expansion at the site.