Data center contracts signed with AEP Ohio

AEP Ohio has entered into binding contracts for 5,642 MW of data center projects under the Data Center Tariff, signaling a significant expansion of data center capacity within its service territory. These projects, slated for progressive commissioning through 2035, involve multiple data center developers and data centers as customers. The agreement highlights AEP Ohio's commitment to supporting the growing energy demands of the data center industry and positions the utility as a key enabler of digital infrastructure growth in the region. The involvement of PJM, the regional transmission organization, and the Public Utilities Commission of Ohio underscores the regulatory and grid integration aspects of this large-scale development. The scale of the contracted capacity, 5,642 MW, is particularly noteworthy, indicating a substantial investment in data center infrastructure. While the financial value of the contracts remains undisclosed, the sheer volume of power committed suggests a multi-billion dollar undertaking. This deal is likely driven by the increasing demand for data processing and storage capabilities, fueled by trends such as cloud computing, artificial intelligence, and the Internet of Things. The progressive rollout through 2035 allows for a measured approach to grid integration and capacity expansion, mitigating potential strain on the existing infrastructure.