(COLUMBUS, Ohio) - A dispute over the electricity demands of proposed data centers in Ohio is headed to the state's Supreme Court, with major implications for utility customers and future development.
AEP Ohio says a special tariff for data center operators is working as intended, requiring developers to commit financially before large infrastructure investments are made. The company reports projected new demand dropped from about 30,000 megawatts to roughly 5,700 megawatts after stricter requirements were implemented. For comparison, peak demand for all Ohio customers has typically ranged from 8,000 to 10,500 megawatts.
Under the tariff, developers must agree to minimum monthly billing levels and pay exit fees if projects are canceled early. AEP says formal plans now account for about 5,642 megawatts of new projects, with total data center demand expected to reach around 18,000 megawatts by 2035.
The Ohio Manufacturers Association is challenging the policy, arguing the original demand projections were speculative and could lead to customers paying for infrastructure that may never be needed.
The case centers on whether existing ratepayers could bear the cost of preparing for growth that does not materialize. The dispute is now before the Ohio Supreme Court.