Data Centers: Frequently Asked Questions

Data centers are a critical part of the nation’s infrastructure because they support the digital services Americans rely on every day. Everything from online banking and healthcare records to public safety systems, telecommunications, cloud computing, streaming services, artificial intelligence applications and government operations depends on data centers to store, process and transmit information. 

Just as roads, airports and electric grids support the movement of people and goods, data centers support the movement of digital information that powers the modern economy.

Yes. 

CORE currently serves a few small data centers, most of which support local business operations or telecommunications services. In 2025, data center load represented less than 2.1% of CORE’s retail energy sales. The largest existing facility, which primarily serves local and regional business needs, accounts for well under 1% of retail sales. One in–development project would grow gradually over several years and is expected to represent approximately 7% to 8% of CORE’s retail load at full buildout.  

Data centers look for locations with: 

• Reliable electric service 

• Fiber connectivity 

• Available land 

• Transportation access 

• Supportive zoning and development opportunities 

These projects can represent significant private investment and long-term economic development in a community. 

CORE has an obligation to serve customers within our certificated service territory. However, the timing of service depends on available system capacity and the ability to maintain reliable service for existing members. 

All large-load customers must satisfy the same reliability, financial and infrastructure requirements before receiving service.  

Every project is evaluated individually. CORE reviews factors that include: 

• Available transmission capacity 
• Substation capacity 
• Generation requirements 
• Reliability impacts 
• Requested electrical capacity and ramp schedules
• Financial commitments 
• Compliance with applicable regulations 

These evaluations help ensure service can be provided safely, reliably and responsibly.

No. 

Utilities must balance reliability, generation availability, transmission constraints and state energy policies. Every large-load request must be evaluated individually to determine when and how service can be provided.

CORE evaluates every opportunity using the same principles: 

• Maintain reliability for existing members

• Ensure members do not subsidize project costs 

• Require developers to fund project-specific infrastructure

• Mitigate financial risk

• Meet regulatory and policy requirements

• Support responsible, sustainable growth 

As a member-owned cooperative, CORE’s priority is to protect members while planning for the future energy needs of the communities we serve.  

No. Data centers do not automatically increase electric rates. 

CORE uses cost-based rates, meaning each member class pays their fair share based on the cost to serve them. Large-load customers, including data centers, are responsible for the costs associated with serving their facilities.

The data center developer pays for infrastructure required to serve its project.

This may include substations, interconnection facilities, transmission upgrades and other dedicated equipment. These costs are assigned to the project and are not added to CORE’s general system costs for other members.

CORE incorporates multiple safeguards into agreements with large-load customers. These may include: 

• Financial security
• Long-term service commitments
• Minimum load requirements
• Phased growth schedules
• Other financial security measures

These protections help ensure project costs are recovered and reduce risk to the cooperative and its members.

No. 

CORE carefully evaluates all large-load requests to ensure reliability remains the top priority. Service is only provided if sufficient transmission, generation and distribution resources are available to maintain reliable service for all members.  

CORE rates generally include three components: 

• Service charge 

• Energy charge 

• Demand charge 

These components are designed to reflect the cost of providing electric service and help ensure members pay based on their actual use and impact on the system.

Typically, no. 

Large-load projects require extensive engineering reviews and feasibility studies. Utilities must ensure that sufficient transmission, substation and power supply resources exist before service can be provided. Depending on a project’s complexity, due diligence and planning can take many months.

No. 

CORE’s current transmission and infrastructure projects are designed to maintain reliability, improve resiliency, support generation and storage resources, and accommodate expected system growth. Planned projects were not developed specifically for data center loads.

Concern for community is a core cooperative principle. 

However, CORE’s authority is limited to providing electric service. Data center developers must satisfy local, state and federal requirements regarding land use, water, environmental considerations and permitting. These requirements are administered by the appropriate governmental agencies and jurisdictions.

Colorado has established emissions-reduction and clean-energy requirements. Utilities must plan for future growth while meeting state regulatory requirements related to emissions, renewable energy and resource planning. These requirements influence how generation and infrastructure are developed.