Big Tech battles over Ohio energy terms

A group of major tech companies, including Microsoft, Alphabet, Meta, and Amazon, has proposed new terms for how data centres in Ohio should pay for their energy needs. This comes in response to a previous proposal by AEP Ohio that required pre-payments from data centres and cryptocurrency miners due to their large electricity demands.

Ohio has experienced a surge in power requests from data centres as tech companies expand their infrastructure for technologies like generative AI. AEP Ohio paused new data centre contracts, citing the overwhelming number of requests. The state’s power industry now faces regulatory battles that may shape how future energy demands are managed across the US.

Several companies, including power suppliers like Constellation Energy and One Energy Enterprises, initially opposed AEP’s proposal. They have now offered an alternative, suggesting a broader application of AEP’s rules to include industries requiring over 50 megawatts of power at one site. This proposal aims to modify when new customers would have to cover costs like transmission upgrades.

Any settlement between Big Tech and the power companies would need approval from the Public Utilities Commission of Ohio, which will play a crucial role in the outcome of this energy dispute.