Columbia Planning and Zoning discusses electric grid needs as it considers data center rules

COLUMBIA, Mo. (KMIZ)

A survey conducted by Columbia's Planning and Zoning Commission found that a majority of respondents believe the city should not build a data center.

But as interest in technology grows, city officials are working to determine what regulations would be needed if a data center were proposed.

Patrick Zenner, Columbia's director of Development Services, said the goal is to establish guidelines before any potential development moves forward.

"We are simply and merely trying to make sure we aren't caught flat-footed without a set of regulations to provide guidance. The ultimate decision here, if we do adopt anything, lies with council," Zenner said during the meeting.

The City Council on May 18 passed a one-year moratorium on data center applications and development. The committee has until next March to present its proposed rules and regulations to City Council.

Electricity demand is one of the key concerns.

According to the committees presentation, the city's historical peak electricity demand is about 290 megawatts, and many of its substations and circuits are already approaching capacity.

Projects requiring more than 20 megawatts of electricity could require significant infrastructure upgrades, a city presentation says. Depending on where a project connects to the grid, even a smaller development requiring 5 megawatts could present challenges for the city’s electric utility.

If Columbia's existing electricity supply cannot meet a data center's needs, developers may need to explore power purchase agreements to secure additional electricity.

Zenner said Columbia already relies on electricity generated outside the city through the regional Midcontinent Independent System Operator.

"We are purchasing off the grid from somewhere else. It's not generated here, and so we're buying wind from Kansas. And because it's part of the MISO grid, it's being credited to us even though we're not using that wind energy — we're not directly using that," Zenner said.

Zenner said any potential power arrangements for a data center would be handled through the city's utility department. Those upgrades could raise questions about who would pay for the additional infrastructure and how the city could protect existing utility customers from increased costs.

Missouri regulators have approved a large-load power service tariff aimed at investor-owned utilities, including Ameren and Evergy. The tariff targets new customers with an expected ramp rate exceeding 75 megawatts.

However, according to the presentation, no equivalent legislation is currently in effect for municipal utilities such as Columbia’s. Discussions about similar efforts are beginning ahead of the 2027 legislative session.

City documents outline potential ways a data center could meet its electricity needs without placing additional strain on Columbia’s existing grid.

It presents an option of generating electricity on site, while another would involve purchasing power from an off-site provider through a power purchase agreement.

Under either scenario, the developer would also need a backup power plan to account for potential outages or disruptions, city documents say.

The city is also considering how a data center could remain a utility customer even if it secures its own power supply. 

If a data center generates its own electricity on-site, one potential arrangement would involve the generation facilities eventually being owned by the city’s electric utility or Boone Electric. Officials claim that approach could create additional jobs in the area.

If the developer instead purchases electricity through an off-site agreement, that contracted capacity could help the utility meet its peak demand obligations.

The said the goal is to ensure a data center can meet its own power needs without placing additional strain on Columbia’s electric grid, while allowing the city and its utility customers to benefit from the development.