The news of a data center coming to Iola is garnering backlash, the most specious being that its electric demands will raise utility rates for the rest of us.
That’s not the case.
Vine Energy LLC neither asked for nor received any incentives in terms of property tax breaks or discounted utility rates to locate here.
And for the approximate $80,000 in utility extensions to bring water and electricity to the facility, the Overland Park company is footing the bill.
The fact that it’s a small-scale data center means the city can easily accommodate its energy needs at no extra expense to consumers.
“We don’t anticipate any rate increases,” assured Assistant Administrator Corey Schinstock on Thursday.
Iola’s ability to generate its own electricity through its diesel-powered generators means it receives a lower rate to purchase electricity through Evergy, enabling it to better attract industries such as Russell Stover Candies, Gates Manufacturing and now Vine Energy with reasonable rates.
Once Gates closes its hydraulic hose line next month, its demand for utilities will drop sharply, said City Clerk Roxanne Hutton.
“But we expect the data center to replace that demand for electricity,” she said, bringing into city coffers about $16,000 a month.
That certainly lessens the sting of Gates’ downsizing. And it’s to the city’s credit it’s got its sites on industries like Vine Energy.
THE UPROAR about data centers is that they are energy hogs.
A super-size data center being constructed in Abilene, Texas will be 4 million square feet and consume 1.2 gigawatts of energy.
Vine Energy’s footprint will be about 3,600 square feet and consume 3 megawatts of energy. Not even in the same ballpark.
Powering the multitude of computer servers that support our digital society also requires significant water. First, to cool the towering equipment; second, to provide electricity for centers that depend on fossil fuels such as natural gas, coal or nuclear energy.
Many municipalities are meeting the challenge by broadening their energy portfolios to include renewable energy such as sun and wind.
There’s not a better location for a solar farm than the city’s 70 acres northwest of Russell Stover and adjacent to the city’s north substation.
