← All glossary terms

Data Center Design and Operations

White space

White space is the area where IT equipment is placed and revenue-generating compute capacity is typically delivered. It is different from support space, and the ratio between white space and total building area affects density and economics.

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Congestion

Congestion occurs when transmission limits prevent the lowest-cost generation from serving load freely. It can raise local prices, create interconnection upgrade needs, and signal grid bottlenecks near attractive data center markets.

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Demand ratchet

A demand ratchet sets current bills partly from prior peak demand, often using a percentage of the highest demand in previous months. For ramping data centers, an early spike or test event can influence bills long after the event if the tariff includes a ratchet.

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Tax abatement

Tax abatement reduces or exempts taxes for a defined period or amount to encourage investment. For data centers, abatements may be tied to capital investment, jobs, equipment, local approvals, and performance commitments.

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