data center

The demand for computing power at data centers is growing faster than the grid can produce the supply. AEP Ohio is proposing a new way to bring electricity to two large data centers that won’t tax the grid in an application the company filed with the Public Utilities Commission of Ohio.

As data centers continue to spring up, so to does the infrastructure to support them — like high-voltage transmission lines.

The operator of the regional power grid that electrifies Ohio is waving a red flag that demand for kilowatts in the state is growing faster than the power being generated, driven primarily by the growth of data centers.

A statewide business coalition believes Ohio should harness the demand of data centers in part by overhauling the state’s permitting and siting processes.

Ohio lawmakers are early in negotiations on an omnibus bill overhauling energy policies. The ever-growing number of data centers statewide are part of the equation.

Ohio Consumers' Counsel attorney Bill Michael's line of questioning on Tuesday suggested companies like Amazon, Meta and Microsoft can afford to pay their fair share, when it comes to purchasing electricity.

AEP Ohio wants to charge data centers differently than other commercial electric users, because the companies require large amounts of electricity, often requiring grid upgrades.

AEP, the PUCO staff and the Ohio Consumers Counsel want data center companies to pay 85% of the electricity usage. The companies wanted to pay 75% of the cost.

The $420 million center will be built on Beech Road and employ 30 people.

Central Ohio has become a big hub for data center facilities, but they have the potential to put serious strain on the electric grid and other natural resources.