COLUMBUS, Ohio — Ohioans could be paying higher electric bills to fund power infrastructure tied to data centers that may never be built, according to a new analysis from the Ohio Manufacturers’ Association.
The report claims AEP Ohio is using “unverified electricity demand” projections from proposed data centers to justify major spending on new generation and transmission projects. The association argues those costs could ultimately be passed on to customers even if the projected demand never materializes.
Central Ohio has seen rapid growth in data center development, with utilities signing agreements to supply thousands of megawatts of additional power in the coming years. However, the manufacturers’ group says many proposed projects remain speculative and could lead to overbuilding electric infrastructure.
Utilities and regulators say grid upgrades are necessary to maintain reliability and support economic growth. State regulators have also adopted rules requiring data centers to commit to paying for most of the electricity they forecast using, even if actual usage falls short.
The report adds to an ongoing debate over who should bear the cost of preparing Ohio’s power grid for future demand as electricity prices continue rising across the region.
You can read the full reportfrom the Ohio Manufacturers’ Association here.
