AEP Stock Rises 1.25% on Google Partnership Despite 43% Volume Drop to $390M

American Electric Power (AEP) saw its stock rise 1.25% on August 4, 2025, despite a 43.12% drop in trading volume to $0.39 billion. The move followed a strategic partnership between its subsidiary Indiana Michigan Power (I&M) and Google, which filed a custom demand response agreement with the Indiana Utilities Regulatory Commission. The initiative allows Google to shift non-urgent data center operations during low-demand periods, reducing peak load and energy costs for I&M customers. This collaboration supports AEP’s broader goals of enhancing grid reliability while accommodating surging demand from large-scale infrastructure projects like Google’s $2 billion Fort Wayne data center.

The agreement, part of I&M’s integrated resource planning, leverages Google’s load flexibility to act as a virtual power plant. By deferring non-critical workloads, the partnership aims to delay capital expenditures on new generation capacity and optimize existing infrastructure. With over 85% of I&M’s 2023 energy delivery emission-free, the deal aligns with both parties’ sustainability priorities. Analysts highlight the innovation as a potential model for utilities seeking to manage rapid electricity consumption growth driven by AI and data center expansion.

AEP’s CEO William Fehrman also disclosed a routine equity-compensation event on August 1, with 6,193 restricted stock units withheld to cover tax obligations. Ownership remains substantial at 73,174 shares, reflecting continued alignment with shareholders. The transaction, classified as an internal settlement, carries minimal implications for market sentiment or governance structure, as no open-market activity occurred.

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