How data centers impact Ohio's electricity prices
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Electricity prices are surging due to anticipated demand from data centers, but new rules in Ohio will make tech companies shoulder more of the cost.
Why it matters: Higher bills are stressing Central Ohioans' budgets as pretty much everything else gets more expensive, too.
By the numbers: AEP Ohio's rates increased in June, adding about $27 to an average monthly electricity bill.
- Statewide, rates increased by nearly 3% from May 2024 to May 2025.
- Meanwhile, American Electric Power reported record second-quarter profits nationally.
How it works: Power plants, not providers, generate electricity. They charge companies like AEP Ohio, which then pass the costs on to customers.
- A recent analysis highlights a dramatic spike in prices set at auction by PJM — the electric grid operator covering many states, including Ohio — largely tied to data centers and artificial intelligence.
- Energy is deregulated in Ohio, meaning customers can shop around for providers.
The big picture: Local residents recently spoke about their bills to the Washington Post, which reports Ohio's new data center regulations could set a precedent for other places.
Zoom in: New, large data centers will now pay a minimum of 85% of the energy they're contracted to use for 12 years, even if they don't actually use it, per a Public Utilities Commission of Ohio ruling.
- The tariffs will help pay for infrastructure upgrades like transmission lines needed to bring electricity to the facilities.
- Smaller centers will pay less, on a sliding scale, and old centers are currently "grandfathered in."
The other side: The Data Center Coalition opposes the tariffs, which it called "a stark departure from solutions enacted in other key data center markets" in news reports.
- Centers are "essential digital infrastructure" and "drive our economy and enhance our quality of life," coalition VP of energy Aaron Tinjum told the Post.
State of play: AEP Ohio has had a moratorium on new Columbus-area data center agreements since 2023 — though some companies are building their own power sources to bypass the backlog, Columbus Business First reports.
What's next: Companies in AEP Ohio's queue can apply for load studies by Sept. 8, the first step in lifting it, spokesperson Laura Arenschield tells Axios.
ICYMI: We mapped out Central Ohio's data centers — the country's fifth-largest concentration overall.