The Tennessee Valley Authority will raise electricity rates for new and existing data centers by about 10 percent under a new rate structure approved last week. TVA provides wholesale power through local power companies across seven states, including much of North Alabama.
TVA’s board of directors approved changes to its wholesale rate structure during its August 20 meeting in Memphis. The new data center rates will take effect October 1 and be phased in over the next three fiscal years.
The new structure creates four standard rate classes based on a data center’s contracted electricity demand. TVA Chief Financial Officer Tom Rice said the changes are expected to increase electricity costs for data centers by about 10 percent. The rates will apply to both existing and future facilities…