AEP Ohio’s proposed tariffs for data centers could reshape U.S. grid management amid soaring demand.

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AEP Ohio has proposed new tariffs specifically for data centers and cryptocurrency mining operations to address the soaring demand for electricity. The proposal includes a requirement for data centers to commit to paying for at least 90% of their projected energy needs over a 10-year period, even if they use less.

  • Utility companies’ handling of data center power consumption growth is crucial
  • AEP Ohio opened a proceeding (Docket 24-05058) with the Public Utilities Commission of Ohio
  • Proposal includes two new tariffs to accommodate anticipated load growth from new data centers:
    1. “Data Center Power” tariff for new data center customers with a monthly demand of 25 MW or more
    2. “Mobile Data Center” tariff for new mobile data center customers, such as cryptocurrency miners, with a monthly demand of more than 1 MW
  • U.S. at a critical moment in grid-planning and management
  • Precedents and strategies are being formed to accommodate data center load influx
  • Outcome of the proceeding will provide early insight into regulatory bodies’ approach to managing data center expansion load growth
  • Issue is relevant to many regions of the country
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Sources:

https://www.aepohio.com/company/news/view?releaseID=9539

https://finance.yahoo.com/news/aep-ohio-files-plan-secure-193700009.html?guccounter=1

https://www.theregister.com/2024/05/21/ohio_datacenter_power/?td=readmore