Eastern Nebraska is running out of electricity

Data centers and electrification are sapping energy from eastern Nebraska's Omaha Public Power District, resulting in a bottleneck that threatens the region’s economic growth. OPPD currently estimates it has less than 100 megawatts of available power capacity to service new or expanding companies over the next few years — manufacturing facilities can range from needing a few megawatts, to over 100.

According to OPPD president and CEO Javier Fernandez, any new project that needs two megawatts or more may have to wait to receive electricity. “Economic development leaders are concerned that if power capacity in Nebraska’s largest metropolitan area remains limited, the Omaha area and the state as a whole will be put at a competitive disadvantage for growth opportunities like new businesses, jobs, and increased tax revenue. This comes as the state is projected to face a $208 million deficit next year,” Anila Yoganathan writes for Grist.

Companies projected to use over 2,000 megawatts of energy are already planning to set up shop in eastern Nebraska. OPPD is now trying to decide how much to expand its energy portfolio: build too small, and the company risks suffocating economic development. Overestimate how much energy new developments will need, and OPPD’s ratepayers will be on the hook financially.