Key Notes 5

• Data Center Redundancy & Revenue
• Built-in redundancy for data centers can enable exporting power to the grid, creating additional revenue streams. [Document | Word]
• Behind-the-meter solutions offer benefits such as avoiding transmission costs, which can be significant at the megawatt scale. [Document | Word]
• Project Financing Differences
• Data center projects differ from traditional energy infrastructure projects due to greater uncertainty and complexity. [Document | Word]
• Risk allocation varies widely, unlike renewable energy projects which tend to be more standardized. [Document | Word]
• The market is still determining typical risk allocation, with different solutions applied in different circumstances. [Document | Word]
• Deal Leadership & Expectations
• Leadership by either power teams or real estate teams affects project expectations and deliverables. [Document | Word]
• Real estate-led deals may treat data centers like any other construction project, while energy-led deals focus on power, water, and environmental impacts. [Document | Word]
• Major Client Concerns
• Regulatory certainty and guaranteeing power supply are top concerns. [Document | Word]
• Reliability issues, such as voltage ride-through and under-frequency, are increasingly important, with questions about responsibility for implementation. [Document | Word]
• Mandatory Curtailment (SPC6)
• Stakeholders have mixed views on mandatory curtailment; ERCOT’s authority to curtail is seen as essential for grid reliability. [Document | Word]
• Political pressure can influence curtailment decisions, especially during grid emergencies. [Document | Word]
• Senate Bill 6 clarifies ERCOT’s curtailment powers, but these powers have existed previously. [Document | Word]

Conclusion

The discussion highlights the evolving landscape of data center project financing, where uncertainty, complexity, and risk allocation are more pronounced than in traditional energy projects. Leadership by different teams (power vs. real estate) shapes project expectations, especially regarding environmental and power concerns. Regulatory certainty and reliable power supply remain major client concerns, while mandatory curtailment policies (such as SPC6) reflect ongoing efforts to balance grid reliability with stakeholder interests. The market continues to adapt, seeking best practices for risk management and operational resilience in data center development. [Document | Word]