CFC Issue Brief on Data Centers Is Now Available

CFC members can learn more about how data centers are transforming the energy landscape by downloading CFC’s new issue brief, “Powering the AI Boom: What Data Center Growth Means for Electric Cooperatives,” which is now available on the CFC Member Website.

As the U.S. data center industry experiences unprecedented growth—driven by surging demand for cloud computing and artificial intelligence (AI)—electric cooperatives are playing an increasingly pivotal role in helping power this booming sector. CFC’s new issue brief serves as a framework to help electric cooperative leaders better understand the rapidly expanding data center industry and how to prepare for serving these large loads. 

A key focus of the issue brief is the scale and speed of data center expansion. In 2024, U.S. data center power demand grew by upwards of 76%, equivalent to powering 12 million new homes. Against this backdrop of rapid growth, electric cooperatives are investing heavily in infrastructure, spending $13.5 billion on utility plant additions in 2024, according to CFC’s Key Ratio Trend Analysis data. 

The issue brief also explores:

• The different types of data centers—enterprise, leased and hyperscale—and their unique operational needs.
• The critical role of reliable, resilient power and high-speed fiber connectivity.
• The impact of data center growth on utility infrastructure, transmission and supply chains.
• Key constraints such as transmission bottlenecks and supply chain pressures on transformers and semiconductor chips.
• The importance of strategic planning and risk management for cooperatives serving large data center loads.

In addition, the issue brief features three case studies that highlight real-world approaches of electric cooperatives serving data center loads and how they balance growth, risk and member interests.

Learn more about this important topic by downloading CFC’s new issue brief from the CFC Member Website.