Why ‘rural’ data centers matter for the San Luis Valley,
by Eric Eriksen

As your CEO at San Luis Valley REC/Ciello broadband, I spend a lot of time thinking about the future—one, five, 10, even 20 years from now. Every decision we make as a cooperative must pass one test: Will this make life better for the people who live and work in the San Luis Valley?

Lately, one opportunity keeps rising to the top: the potential for edge data centers, or what I like to call “rural” data centers, right here in our service territory. I want to share why these matter, not in technical terms, but in terms of real benefits for our members.

Most of us don’t think about the digital “plumbing” behind our daily lives. We just open a laptop, stream a movie, check in with family on video or manage a business from a phone. But every one of those actions travels through a physical place— a data center. For years, those facilities existed almost exclusively in big cities. That meant rural communities like ours waited longer for data to travel— and we didn’t share in the economic benefits. That’s changing fast.

Not all data centers are the same
Before talking about the opportunity, it’s helpful to clear up a common misconception: not every data center is a giant, power-hungry, water-guzzling complex like the ones you see in national news. In fact, the data center industry has several distinct segments— many of which are small, efficient and designed specifically for communities like ours.

Here’s a simple way to think about it:
1. Hyperscale Data Centers
These are the massive facilities built by companies like Amazon, Google and Microsoft, often requiring over 100 megawatts of power and hundreds of thousands of square feet.
 2. Regional Data Centers
Mid-sized facilities require strong infrastructure, but far less than hyperscale sites, often requiring 50-100 megawatts of power and up to 100,000 square feet of facility space. 
3. Edge or “Rural” Data Centers
These are the most relevant for us. Rural data centers are small, efficient facilities— often the size of a modular 20’ or 40’ metal container, a home or a small commercial building. They require far less power than hyperscale data centers, typically 50 kilowatts up to 50 megawatts. It is common for them to be air-cooled or use a closed-loop refrigeration system instead of consuming water.

This is the market segment that aligns with our grid, our broadband network and our long-term planning. 
 
Economic development close to home
The idea of a data center may sound abstract, but the benefits aren’t. These facilities bring real, tangible jobs: construction work, technology positions, electrical trades, maintenance, security, tax base and more. They also attract businesses that support and rely on these centers. To put this in perspective, our largest electric member today is about 1.5 megawatts. A 2-megawatt data center would be our largest load, and if running steadily 24/7 could significantly help pay for our rural electric system.

Powered by the Valley’s natural strengths
Our high altitude cool sunshine air, your SLV Rural Electric Cooperative and Ciello broadband are perhaps the most ideal conditions in the nation for a rural data center. That gives us a competitive advantage.

I’m proud of the work we’ve done at SLVREC and Ciello to build a modern, resilient electric grid and one of the strongest fiber networks in the country. For over 20 years, our agricultural industry’s energy demand has been declining. This underutilized capacity is an opportunity to serve five, 10, 20, 50 or more megawatts of rural data centers. There are seven long-haul fiber routes into and out of the Valley, with terabytes of unused capacity that is ideal for data centers. When companies look for rural data center locations, they want exactly what we’ve built: reliable, affordable power and world-class broadband.

We are exploring this opportunity thoughtfully and carefully, guided by one priority— the San Luis Valley and the people who live here. Over the past year, we have been in discussions with three rural data center developers exploring opportunities. They haven’t pulled the trigger yet, but if one does, then you’ll know it’ll be beneficial for all of us. For a rural area like ours, reducing the “digital distance” between us and the rest of the world is transformational. When data is processed closer to home, everything works better and faster. Rural data centers can help lower rates.

To learn more, click HERE

As always, I’ll keep you informed as this conversation evolves. Thank you for trusting us to serve you.