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For Data Centers & Hyperscalers

Utility-grade capacity. Available fast.

Distributed Capacity Procurement (DCP) creates the grid capacity that new data centers and distributed edge compute need to connect — big, fast, and cheap. The regulatory frameworks are in place: 77 large load tariffs across 36 states. The window for first movers is open now.

9-12 months to first capacity
200-500+ MW in 24-36 months
Across the U.S. where capacity is needed
Distributed Capacity Procurement

Utility-grade. Accredited.Distributed capacity.

This isn't demand response. It isn't behind-the-meter. It's front-of-the-meter battery storage and gensets — utility-owned assets, integrated with DERMS, ADMS, and SCADA, dispatched from the control room, and accredited as capacity on the utility's resource plan. The kind of capacity that counts — exactly where and when the grid needs it most.

How DCP batteries and gen sets deploy as distributed capacity
How to Buy

A Commercial Structure ThatSleeves Capacity

Utility
operates

The utility dispatches it. You get credit for it.

Every asset is integrated with DERMS, ADMS, and SCADA, dispatched to serve grid needs. Accredited capacity that counts toward the resource plan — and toward your load growth.

You
fund it

Your capital, your capacity

Through an Energy Services Agreement, bilateral contract, or large-load tariff, the large-load customer commits capital toward DCP. The capacity you fund serves your load and delivers co-benefits to ratepayers. DCP supports multiple ownership structures — utility-owned, large-load customer paid, or third-party infrastructure capital. We help you navigate the options.

Sparkfund
deploys

Sparkfund handles everything in between

As the deployment services engine, Sparkfund handles everything between agreement and energization: capacity accreditation, site acquisition, permitting, construction, and vendor management — on time, on budget, to utility-grade standards.

The large-load customer funds the capacity directly. Distribution benefits accrue as co-benefits to all ratepayers.

Community Benefit

Turn community opposition into community advocacy.

DCP deploys batteries at local businesses, houses of worship, non-profits, and commercial and industrial sites across the community, each earning thousands of dollars per month. The data center enters as a source of local investment, not just load. Developers can lead with that story from day one.

Community aerial view
Financial Benefits for Community
Local businesses, houses of worship, underserved communities, and commercial and industrial sites earn thousands of dollars per month in direct lease payments.
Host sites become direct participants in the infrastructure investment your data center is driving.
No capital cost to hosts. Improved grid utilization puts downward pressure on rates for all customers.
Grid & Community Resilience
Co-benefits accrue to all ratepayers through improved grid utilization.
Front-of-the-meter batteries can provide backup for critical community loads like wastewater treatment plants and fire stations.
More than 80% of every program dollar is competitively bid to local and regional vendors and contractors.
DCP in Action

The model is approved.
The pathway is open.

In February 2026, Google committed $50 million to Xcel Energy's Capacity*Connect program to support its new Pine Island, Minnesota data center, structured through a Clean Energy Accelerator Charge — a large load tariff that requires data centers to fund grid capacity without shifting costs to existing ratepayers. Google's $50 million funds distributed battery deployment across Minnesota. In return, Google earns accredited capacity credits tied to the deployed assets. On April 2, 2026, the Minnesota PUC approved Capacity*Connect. Google moved before regulatory approval.

The commercial pathway is now proven for any data center that needs accredited capacity.

"Our commitment to Minnesota goes beyond building infrastructure; it's about being a responsible partner, neighbor, and a good citizen of the grid. This agreement supports our goal of expanding AI and cloud capabilities in a way that provides long-term value to the places we operate."

— Amanda Peterson Corio, Head of Data Center Energy, Google

"Sparkfund will help Xcel Energy deploy distributed energy resources to meet growing customer energy needs, support economic growth in Minnesota and unlock the full value of the U.S. electric grid."

— Pier LaFarge, Sparkfund
$50M
Google's investment into Xcel Energy's Capacity*Connect program
200 MW
Target distributed capacity by 2028 across Minnesota
1st
Distributed Capacity Procurement
Live program
Sparkfund data center team
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Talk to our team about DCP.

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