← All glossary terms

Utility Rates, Grid, and Markets

Investor-owned utility

Investor-owned utility is a privately owned utility regulated by public utility commissions and accountable to shareholders. IOU service territories, tariffs, planning processes, and economic-development practices can materially shape data center site feasibility.

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Economization

Economization uses favorable outdoor conditions to reduce mechanical cooling energy. The practical value depends on climate, air quality, humidity, water strategy, controls, and whether the system uses air-side, water-side, or refrigerant methods.

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Feasibility study

Feasibility study is an early engineering screen of whether a proposed interconnection may cause system impacts and what broad costs could result. It is useful for early go/no-go decisions but is less definitive than system impact or facilities studies.

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PILOT

Payment in Lieu of Taxes is an agreement where a project pays negotiated amounts instead of standard property taxes, often as part of an incentive or public-finance structure. PILOT value should be evaluated against baseline taxes and community costs.

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