← All glossary terms

Finance, Valuation, and Incentives

Clawback

Clawback is a provision requiring repayment or loss of incentives if commitments are not met. It protects public agencies but can create financial exposure if project timing, investment, or employment assumptions slip.

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CRAC

Computer Room Air Conditioner is a cooling unit that provides conditioned air to data center spaces, typically using refrigerant-based cooling. CRAC units are common in traditional environments but may be less suitable for very high-density AI racks without supplemental cooling.

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Peak demand

Peak demand is the highest measured demand in a defined period. It matters because a short spike can drive utility billing, transformer loading, interconnection sizing, and system planning even if total monthly energy use is modest.

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Firm service

Firm service is service with higher priority and fewer curtailment rights than interruptible or non-firm service. Data center users usually need firm service for critical load, but some projects may combine firm and interruptible blocks for economics.

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