Power, Water & Infrastructure

Electric Power

Large-Load Tariffs

Major electric customers like data centers typically operate under special rate structures called "large-load tariffs." These are negotiated separately from residential rates and include provisions for the unique demands of industrial users.

Concerns About Electric Bill Increases

In some states, data center development has contributed to higher electric bills for residents when infrastructure costs were spread across all customers. This is a legitimate concern, and El Dorado residents are right to ask about it directly. Kansas has taken steps to address this:

• Kansas law requires cost responsibility: By law, data centers pay the full cost of their power usage with no discounted electricity rates. They cannot pass infrastructure costs to residential customers.
• Kansas protections (Nov 2025): The Kansas Corporation Commission approved new rules requiring large power users to pay for their own transmission lines and path to power, and operate under separate rate structures from residential customers.
• Federal proposal (Jan 2026): The Trump administration proposed policies requiring data centers to fund new power generation, specifically to protect residential ratepayers.
• Large customers are expected to pay for dedicated infrastructure improvements and connection costs.

These protections work together to ensure residents and small businesses are shielded from cost-shifting. Data centers are required to pay the full cost of their infrastructure needs.

Grid Impact

Before any major load is added to the grid, utilities conduct interconnection studies to assess capacity and identify needed upgrades. These studies determine what improvements are needed and who pays for them.

Specific rate structures and cost allocation depend on utility agreements and regulatory approvals. These details would be part of any formal proposal.

Water Use

Closed-Loop Cooling Systems

Modern large-scale data centers most commonly use closed-loop cooling systems. These systems recirculate the same water through the cooling loop continuously, rather than drawing fresh water on every cycle. Water usage varies depending on facility design, cooling technology, and climate conditions.

What Happens to the Water

Water discharged from the cooling system is properly treated — similar to how a municipal wastewater treatment plant operates — and is then either safely released or made available for reuse in other industrial applications. El Dorado's leadership is well-positioned to require this as a binding term in any development agreement.

Conservation Requirements

Modern data centers increasingly use water-efficient designs. Communities can require water efficiency standards as part of development agreements, including targets for water use effectiveness (WUE) metrics.

El Dorado's Unique Water Position

El Dorado has a water system unusually well-suited for evaluating large industrial proposals:

• Firm water supply: Approximately 10 million gallons per day available for industrial use, planned to remain available even during drought conditions.
• Reservoir-based: El Dorado Reservoir provides long-term planning certainty and reduced risk of depletion.
• Direct control: The city is the sole owner of its water system and contracts directly with the U.S. Army Corps of Engineers.
• Revenue opportunity: Water sales to industrial users create a revenue stream for the city that can support local services — including reinvestment in the lake itself.
• Capacity study: The City completed a feasibility study with Black & Veatch confirming the ability to sell an additional 8.5 billion gallons per year (23 million gallons per day) beyond current sales, while maintaining all existing commitments to residents.

Infrastructure Footprint

Compared to other large-scale developments with similar investment levels, data centers typically have a lighter infrastructure footprint:

A Proven Track Record

Data centers aren't new. They've been operating in American communities for decades — and the results speak for themselves:

• Ashburn, Virginia is the data center capital of the world, home to 100–200 facilities and the hub of a significant share of the world's internet traffic. It is one of the most desirable communities in the country — not despite the data centers, but in part because of the infrastructure investment they brought.
• Residents of established data center communities frequently report that the facilities are barely noticeable — quiet, low-traffic, and professionally managed.
• The industry's track record across thousands of operational facilities demonstrates that — with proper planning — these concerns are manageable and the benefits are real.

Key Safeguards