Data Center Contract Structure: Who’s Footing the Bill?

Monday, October 26, 2026

Data centers have changed the game, stressing existing systems and structures and—at times—creating some less-than-desirable outcomes.

For utility companies, key among the opportunities and risks is the impact on customer bills. Reports that data center development has driven customer bills higher AND lower correctly highlight the incredible complexity of the issue.

Miller/Howard supports initiatives that have data centers pay their own way, and we think there are real, attainable paths to accomplishing this objective. In regulated markets, this includes large load structures that identify cost causation and stranded asset risk. In competitive wholesale markets, regulatory clarity would go a long way toward ultimately providing the required generation. New builds require creating a durable investment signal, potentially accomplished through prioritizing load bringing its own long-term contracted supply. Speeding up the interconnection queue would also help alleviate the timing differences of new demand and supply.

Our recent conversations lead us to believe that most utilities and stakeholders are trying—in earnest—to protect other rate payers. We remain optimistic the industry can and will find the necessary solutions to enable development while protecting consumers.

The story is complex and nuanced, and responsible development and structuring should be the aim. We take a deep dive into regulated and competitive utility markets as well as trends towards behind-the-meter solutions and policy initiatives to protect residential electricity customers in our new white paper: Data Center Contract Structure: Who’s Footing the Bill?

Adam Fackler, CFA
Chief Investment Officer

Adam Fackler, CFA, Chief Investment Officer, oversees Miller/Howard’s portfolio management team and is the designated lead or co-lead portfolio manager on the firm’s products. Prior to being named Chief Investment Officer, he served as Deputy Chief Investment Officer, and he focused on infrastructure companies including utilities, telecommunications, and midstream energy/master limited partnerships (MLPs). Previously, Adam spent 10 years in equity research, including five years at Rodman & Redshaw, KLR Group, and MLV & Co. where he covered exploration & production companies and MLPs. Adam holds a BS in Business Administration with a minor in Economics from Bucknell University.

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