This month, AEP Ohio recognized a ruling by the Public Utilities Commission of Ohio (PUCO) that addresses the power needs of Ohio’s growing data center industry while protecting AEP Ohio’s other customers.
The ruling approves a request AEP Ohio made in May 2024 to establish enhanced financial obligations that data centers must undertake to support infrastructure that serves them. PUCO staff, the Ohio Consumers’ Counsel, the Ohio Energy Group and others had joined AEP Ohio in the filing. The financial requirements are designed to protect other customers from shouldering the costs of grid improvements required to meet data centers’ energy demands.
“We are glad the PUCO agrees that it is critical to align data centers’ demand for energy with the infrastructure costs needed to support their growth in Ohio,” said Marc Reitter, AEP Ohio president and chief operating officer. “This infrastructure will support Ohio’s growing tech sector and help secure America’s data storage and processing facilities here in the U.S.”
AEP Ohio’s proposal approved by the PUCO requires large new data center customers to pay for a minimum of 85% of the energy they are subscribed to use — even if they actually use less — to cover the costs of infrastructure needed to bring electricity to those facilities. The plan creates a sliding scale that allows small and mid-sized data centers more flexibility. It also requires data center owners to provide proof they are financially viable and able to meet those requirements. The terms also include an exit fee if a project is canceled or unable to meet the obligations over the term of the electric service agreement contract.
The requirements would be in place for 12 years, including a four-year ramp-up period.
The agreement also outlines a process to end the moratorium on new Central Ohio data center agreements, which AEP Ohio had instituted to protect the grid and the company’s other customers while the PUCO considered these new rules.
“I am grateful for the collaboration of all the parties involved in this filing, which ultimately brings clarity and certainty for infrastructure planning,” Reitter said. “We are looking forward to ending the moratorium and continuing to support development of more data centers in our service territory.”
