The advent of several large-scale industrial projects in Cedar Rapids, including two data center developments, has helped Alliant Energy establish reliable, sustainable energy generation – and a five-year freeze on electrical rates, according to Alliant CEO Lisa Barton.
“We have invested a tremendous amount here with this robust transmission network and diverse mix of energy resources,” Ms. Barton said in her keynote address to an estimated 974 attendees at the Cedar Rapids Metro Economic Alliance’s annual meeting Jan. 28 at the DoubleTree by Hilton Cedar Rapids Convention Complex.
And that investment in a diverse, reliable network will spur more economic development projects in the area, many of which have a tremendous need for electricity, Ms. Barton said.
“We are both encouraged and excited about the future of economic development here in Cedar Rapids,” Ms. Barton noted. “We have the ability to have a five-year flat rate construct here. That has been one of the things that we have targeted as a company to figure out – how do we make sure that we’re maintaining affordability while growing. When you look at all of the different areas in this country, there are very few states where you can have your rates flat for at least the next five years, and (we’ve) been able to solve that regulatory construct here to make sure that we can grow with our communities and keep rates flat.”
Alliant agreed to the five-year rate freeze as part of the settlement of their most recent rate case with the Iowa Utilities Commission.
The establishment and maintenance of a “secure, resilient” electrical grid, prompted in part by significant repairs in the wake of the destructive 2020 derecho, have helped position Alliant, and Cedar Rapids, to accommodate data center developments like the $750 million Quality Technology Services (QTS) project and the $576 million Google data center, both to be built in Alliant’s Big Cedar Industrial Center on the city’s southwest side – as well as spurring ancillary development projects throughout the community, Ms. Barton said.
“It really will position Cedar Rapids as a technology hub,” Ms. Barton said. “I’ve seen this in other place. Once some of these data centers come into place, then there’s so many other businesses that come along to support them. First and foremost will be a tremendous amount of construction jobs here locally. And when they move, they move very, very quickly. They provide a nice tax base to the community. It’s not just the land or the buildings, but it’s the assets that are actually put into these buildings. Billions of dollars gets invested locally in this community, and so from a technology standpoint, jobs and so forth, it’s really helpful.”
Today’s energy production stands at the intersection of three powerful global forces, and providing simultaneous solutions for all three is “the challenge that we have today” in the utility industry, Ms. Barton said.
The three forces – geopolitical challenges, global energy dominance, and the growing demand for energy and electricity – are not mutually exclusive, according to Ms. Barton.
“Every generation faces its set of challenges, and these forces – and solving for each simultaneously – is the challenge that we have today,” Ms. Barton said. “We’re really trying to position ourselves to solve the Rubik’s Cube. We’re simultaneously solving for reliability, resiliency, growth, sustainability and affordability. And you can’t do these things with just one side of the Rubik’s Cube being solved for. And it’s part of what makes Alliant Energy so different and so focused on the Cedar Rapids community and all the communities that we serve. We want to make sure that we are working in partnership with our communities, to make sure that we’re solving for all of those complexities.”
The ongoing explosion of AI, and its resultant need for massive amounts of data, is a trend that will continue to grow, and the areas that are receptive to data center developments are poised for future success, Ms. Barton added.
“When we talk about data centers, what we’ve seen across the country is that the communities that are open to data centers continue to grow and attract new ancillary businesses,” she said. “I’ve seen that in a number of communities over my career, and I couldn’t be more excited for the future of Cedar Rapids. It really just is how we all work together. It is not one company carrying the lift.”
The CRMEA annual meeting also included the presentation of the annual Howard Hall Excellence in Business Award to Pankaj Monga, president and CEO of Channel Fusion.
In an emotional acceptance speech, Mr. Monga described his journey with two words – perspective and intersections.
“As I reflect on what this award represents, I’m reminded of the responsibility it carries,” Mr. Monga said. “It is a call to not only focus on doing things right, but more importantly, doing the right things, to continue to strive for excellence and to give back to the community that has given me so much. Our community is a shining example of that belief, with its rich history of being welcoming, resilient and working together to affect positive change. It has been an integral part of my journey and has provided a nurturing ground for my dreams to take root and flourish. As Howard showed us, our work is not just about building businesses, but about building legacies that matter.”
The meeting also included a review of the past year’s accomplishments of the CRMEA and an outline of priorities for 2025.
