Data Centers Will Have to Make Minimum Power Payments in Ohio

(Bloomberg) -- Big data centers in Ohio will have to pay a minimum of 85% of the energy they need to cover the costs of grid improvements under a settlement submitted Wednesday by one of the state’s largest utilities. 

The pact was reached by the Ohio utility owned by American Electric Power Company, the staff of the state’s Public Utilities Commission, the state consumer advocate, a manufacturers group and others including Walmart. 

The agreement, which includes a sliding scale for small and mid-sized data facilities, outlines a process to end the moratorium on new data center agreements in central Ohio, AEP said. A decision on the payments will have to be approved by the state PUC. 

The proposal comes as government officials and power providers grapple with who will pay for an expected surge in electricity demand from data centers running artificial intelligence. In Central Ohio, electricity demand is expected to more than double by 2030. 

Earlier this month, data-center developers submitted a competing proposal that would have required them to pay a minimum of 75% of their energy use.