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Aep Ohio Builds $4.2 B Ai Grid

BySwitchgear Magazine03-24-20262 min
Switchgear Magazine
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USA, Ohio: AEP Ohio is preparing for a dramatic shift in electricity demand driven by artificial intelligence and data centres. The utility has secured contracts for 17,861 MW of new data centre load, more than double its current peak usage of 8,000–10,500 MW. To meet this surge, AEP is investing $4.2 B to build 765-kV transmission lines serving a 10 GW data centre campus at the former Piketon gaseous diffusion plant.

The project, scheduled for power delivery in 2029, represents a major step in creating an AI-ready grid. The high-voltage infrastructure is designed to handle unprecedented demand while reducing transmission losses and ensuring reliability. By constructing the backbone ahead of data centre growth, AEP aims to avoid delays and underused assets.

AEP Ohio’s financial model protects existing customers. SB Energy funds the entire $4.2 B expansion, covering upfront costs while AEP develops and operates the network. A Data Center Tariff ensures only projects with binding commitments proceed, preventing speculative spending and overbuilding.

Critical milestones include securing permits and public support from the Ohio Power Siting Board by 2027. The main risk lies in concentrating a large portion of demand in one campus, making diversification key for long-term success.

If executed as planned, AEP Ohio will provide the essential infrastructure for the growing AI and data centre market, creating a predictable revenue stream while shielding residential customers from immediate cost increases.

Source: Bitget

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#AEP Ohio#AI#Data centres#electricity grid#Power demand#transmission lines

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