AEP Ohio Wins Approval for Data Center Infrastructure Plan, Boosts Ohio's Tech Sector

AEP Ohio received approval from the Public Utilities Commission of Ohio for a proposal to align data center demands with infrastructure costs. The decision endorses AEP Ohio's initiative to impose new financial obligations on data centers to fund necessary infrastructure developments. The approved infrastructure improvements will support the expansion of Ohio's technology sector, bolstering the country's position in data storage and processing.

Title: AEP Ohio's Proposal for Data Center Energy Requirements Approved by PUCO

American Electric Power (AEP) Ohio has received approval from the Public Utilities Commission of Ohio (PUCO) for a proposal that aims to align data center energy demands with infrastructure costs. The ruling, which was adopted on July 2, 2025, endorses AEP Ohio's initiative to impose new financial obligations on data centers to fund necessary infrastructure developments [1].

The approval comes after AEP Ohio submitted a request in May 2024 to establish enhanced financial obligations for data centers. The ruling ensures that data centers will contribute to the costs of grid improvements required to meet their energy demands, thereby protecting other customers from shouldering these costs [1].

Marc Reitter, AEP Ohio's president and chief operating officer, expressed satisfaction with the PUCO's decision, stating, "We are glad the PUCO agrees that it is critical to align data centers’ demand for energy with the infrastructure costs needed to support their growth in Ohio. This infrastructure will support Ohio’s growing tech sector and help secure America’s data storage and processing facilities here in the U.S." [1].

The ruling also establishes a path to end the current moratorium on new central Ohio data center agreements, creating a 12-year regulatory certainty window that enables proper infrastructure planning. Additionally, it includes exit fees for project cancellations, addressing the controversial point of data centers consuming more electricity and forcing costly infrastructure spending [2].

The approval of AEP Ohio's proposal is significant for Ohio's data center industry, which is experiencing rapid growth. The ORV3 rack market, which provides scalable and energy-efficient rack infrastructure for data centers, is projected to grow at a CAGR of 8.72% from 2024 to 2030, reaching an estimated value of USD 1.20 billion by 2030 [3]. This growth underscores the need for robust infrastructure planning and funding to support the expanding data center sector.

In conclusion, the approval of AEP Ohio's proposal by the PUCO is a crucial step in ensuring that data centers in Ohio contribute to the costs of the infrastructure required to meet their energy demands. This decision will support the growth of Ohio's technology sector and strengthen the country's position in data storage and processing.

References

[1] https://www.tipranks.com/news/the-fly/aep-ohio-data-centers-proposal-adopted-by-puco-thefly
[2] https://seekingalpha.com/news/4466298-ohio-regulator-approves-aep-proposal-on-data-center-energy-requirements
[3] https://www.globenewswire.com/news-release/2025/07/07/3110814/28124/en/ORV3-Rack-Market-Global-Forecast-Report-to-2030-ORV3-Rack-Adoption-Accelerates-Modernization-of-Data-Center-Infrastructure.html