When it comes to managing energy, location can make all of the difference.
At Thea Development, we identify sites that have an energy advantage and meet all of the other stringent demands of data centers. Even in deregulated markets, location can have a material impact on the price and management of energy. Texas is a case in point.
Recently, Energyzt, an energy consulting company, analyzed electricity pricing at points near data centers around Texas using Locational Marginal Pricing (wholesale electricity plus congestion charges) and observed that markets like San Antonio and Austin have been paying much higher prices than Sherman – as much as 10% per year. Dallas had been at a slight discount to Sherman until 2017 when prices there also shifted to a premium. In a follow-up report that focused on drivers of price differentials, Energyzt noted that 6 of the top 15 locations in 2016 with congestion constraints were in the Dallas/Fort Worth area, compared to zero in 2014. Because of its energy advantage, the campus in Sherman is likely to remain at a discount going forward.
Controlling energy costs is not just about the price of electricity at a specific point – it also involves access to generation in different forms in multiple markets, capacity of transmission lines, and other resources (like water) to decrease energy demand.
An abundance of diverse resources create a competitive advantage that allows for the optimization of both cost and reliability.
Location really does matter.