A key challenge was the lack of recent precedent for utilities serving new load at the scale and in the timeframe required by the client. In almost all the markets Atrium evaluated, the incumbent utilities were being inundated with requests from large data centers for new service. Few, if any of these utilities were actively adding new customers of this scale, resulting in limited published guidance on or visibility into interconnection pathways. The complexity of this challenge was compounded by the fact that each jurisdiction Atrium evaluated had a unique market structure and regulatory framework. Atrium synthesized and prioritized its findings to deliver high-value, actionable advice the client within the context of its fast-paced, dynamic site selection process.

Atrium’s evaluation involved direct engagement with incumbent utilities on their contracting process, review and interpretation of their service offerings and tariff structures, and evaluations of their latest integrated resource plans. The Atrium team developed customized pricing models for each market, incorporating inputs on utility tariffs, on-peak/off-peak pricing, load profiles, and monthly demand. Atrium’s ability to identify and characterize the risks most relevant to the client’s objectives, and to develop and recommend strategies and approaches to mitigate those risks were essential to enabling informed siting decisions in the face of substantial uncertainty.

Atrium delivered over two dozen power market reports over the course of the engagement. Atrium’s insight was integral to the client’s decisions around where and how to best deploy its resources. Atrium’s role supported the client’s objective of providing its existing and potential customers the highest value solutions to meet fast-growing demand in markets scarce power availability. While identifying ways to meet demand of this magnitude presents significant challenges, Atrium’s approach confirmed that power procurement for new data centers, though complex, is achievable with the right mix of industry expertise, detailed due diligence, and strategic planning. Building on earlier findings, Atrium continues to develop the on-site natural gas generation pathway as an actionable, and often preferred strategy for the client. It has continued utilizing Atrium to design and implement procurement and risk management strategies around long-term fuel supply.

Through this engagement, and other work with data centers and utilities, Atrium is at the forefront of one of the most pressing challenges facing energy sector. Our extensive expertise in energy procurement for data center developers, gas and electric market structures, and utility pricing and regulation positions Atrium to be the trusted advisor of choice for in this fast-evolving space and we remain committed to supporting clients facing similar challenges moving forward.