Development spread
Development spread is the difference between yield on cost and market cap rate. A positive spread suggests development value creation, but only if cost, schedule, leasing, and power assumptions are credible.
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Utility Rates, Grid, and Markets
Demand ratchet
A demand ratchet sets current bills partly from prior peak demand, often using a percentage of the highest demand in previous months. For ramping data centers, an early spike or test event can influence bills long after the event if the tariff includes a ratchet.
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Three-phase power
Three-phase power uses three AC waveforms separated in phase, allowing efficient delivery of large amounts of power. Most utility, substation, generator, UPS, and data center distribution calculations for major loads rely on three-phase formulas.
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Demand is the rate of electricity use over a defined interval, commonly measured in kW or kVA. Utilities often bill large customers based on the highest measured demand interval, not just total energy consumed.
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