The data center scorecard for Tuesday night
Ten questions to take to any data center hearing. If the developer cannot answer them in writing, the county has a rendering, not a proposal.
How to use it
None of these ten questions is a gotcha. Each one has a real answer a developer can know, and someone negotiating in good faith will have it ready. The ones that get a shrug, a “proprietary,” or a “we will get back to you” are the ones that tell you where the risk was quietly parked. Ask them out loud, on the record, and watch which ones the room does not want to answer.
Reading the answers
The pattern in the answers matters more than any single one. If the load, the tariff, the queue position, and the water meter all come back public and specific, a town can look at that deal and say yes and mean it. Plenty of communities have, and done fine. But if the load is “flexible,” the water figure is “proprietary,” the jobs number is quietly a construction total, and the veto has already been promised away in the development agreement, the county is not hosting the future. It is signing up to host someone else’s depreciation schedule, and to hold the substation when the depreciation is done.
None of the ten questions asks the developer to prove the project is bad. Each asks the developer to prove it is real, and to name who carries the risk if it is not. That is a fair thing to ask of any customer that wants a decade of tax revenue and a substation sized for a small city. The tax break alone can run past a million dollars for every permanent job the campus keeps, which is reason enough to make the developer show the arithmetic before the county signs. A good actor answers them in an afternoon.
The cloud has an address
Across this series the same shape keeps showing up. The cloud is not weather and it is not magic; it is a building with an address, and the address has a meter and a water line, a payroll and a seat at a county hearing. The scorecard is just a way to make the building show all of that before the vote instead of after. The last part of the series is where the author stops reporting and says how he comes out on the whole thing, in his own words.
- The scorecard draws on the reporting in the earlier parts of this series: PJM market-monitor cost findings, Virginia’s GS-5 large-load tariff, data-center water disclosures, jobs and abatement data from Brookings and Good Jobs First, and interconnection-queue data from Lawrence Berkeley National Laboratory. See the full series hub.
- Virginia SCC data-center initiatives, including the GS-5 tariff and collateral requirements, as a model for the “make the tenant go first” question. Virginia SCC.
- Good Jobs First on abatement disclosure and clawbacks, for the tax-break questions. Good Jobs First.