With the explosive growth of hyperscale data centers reshaping the power sector at an unprecedented speed, utilities should take this as an opportunity to modernize and compete.
In the article “Beyond Co-Location: The Emerging Opportunity for Vertically Integrated Utilities in the Data Center Boom” in Power Magazine, CRA’s energy expert Jim McMahon explores how utilities can quickly and flexibly adapt their operating models, regulatory processes, and customer engagement to remain relevant and attractive to these large-scale, technically sophisticated customers.
To seize this opportunity, McMahon highlights the targeted but meaningful shifts vertically integrated utilities must make in three key areas:
- Accelerated and Adaptive Planning Processes
- Regulatory Modernization and Procurement Reform
- Customer-Centric Operating Models
Vertically integrated utilities have the opportunity to offer what no third party can: firm, scalable, grid-integrated power backed by decades of operational expertise, long-term infrastructure vision, and regulatory credibility. By capitalizing on their structural advantages and embracing purposeful change, vertically integrated utilities can deliver solutions that are more resilient, intelligent, and enduring.
