11-08-2025
How data centers impact Ohio's electricity prices
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.
