Major tech companies, including Microsoft, Alphabet, Meta, and Amazon, have submitted an alternative framework for data center power payments in Ohio, according to regulatory filings on Thursday. This move comes in response to an AEP Ohio proposal that would require data centers and cryptocurrency miners to provide pre-payments and financial assurances for their substantial energy demands.
The utility company AEP Ohio initially introduced the proposal in May, citing an overload of power requests from these sectors. Big Tech’s rapid expansion, especially with the rise of technologies like generative AI, has led to an unprecedented surge in power demand, particularly for data centers across several U.S. states.
This Ohio dispute is one of several ongoing regulatory debates that could set precedents on how the power industry manages the expansion of data centers and determines who bears the costs of meeting their energy requirements. Due to the sudden surge in power requests, AEP Ohio paused new contracts for data centers earlier this year, underscoring the strain on infrastructure.
In their response, Big Tech firms, along with power companies like Constellation Energy and One Energy Enterprises, have collectively opposed AEP’s original proposal. The new framework they presented aims to address AEP’s concerns while setting terms that would apply more broadly to industries with large energy loads, specifically those exceeding 50 megawatts at a single location. The proposal also outlines revised conditions under which large power consumers would bear costs associated with infrastructure upgrades.
For the proposal to take effect, it would require approval from the Public Utilities Commission of Ohio, which has yet to comment on the matter. This decision could shape how utility companies and high-demand industries negotiate power terms as data center growth accelerates nationwide.
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