In November 2025, RMI published a report making the case that off-site demand flexibility, energy efficiency, and distributed generation can help meet rapidly growing data center electricity demand while lowering costs, improving reliability, and reducing the need for new fossil generation. The report outlined how data centers and other large electricity customers could help finance and scale distributed capacity. Since the report’s publication, new laws, commission decisions, and utility proposals have begun creating pathways for large customers to fund distributed capacity, for utilities to evaluate it as a grid resource, and for that capacity to deliver tangible benefits to participating customers. The design of these pathways will shape the types of transactions that are possible, the willingness and ability of data centers to pay for distributed capacity, and the potential scale of future investments.
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