From Guesswork to Strategy
Margarita Patria is a principal at Charles River Associates. Her work has focused on the intersection of energy economics, market design, and data analytics. She provides market design and analysis solutions. She is leading multiple policy valuation projects as well as successful energy auctions and renewable procurements in multiple states and is responsible for electricity market analysis, bid valuation, and forecast tasks.
Accurate load forecasting is fundamental to a utility’s ability to invest confidently, protect earnings, and deliver reliable service. But the traditional tools many utilities rely on are being tested by a new, unpredictable customer: the data center.
Data center inquiries are now part of utilities’ daily workflow. However, as many have learned, interest doesn’t equal impact. Plenty of projects knock on the door, but far fewer move in. This makes it hard to know when to invest in new infrastructure or how to explain risk to regulators or shareholders.
Why would developers pursue sites they may never build on? The answer lies in how this market operates. Developers hedge. They inquire at multiple sites while weighing permitting, power prices, and interconnection timelines, much like students applying to several colleges to improve their odds.