Big Tech proposes power-rate terms in Ohio data-center fight

NEW YORK – Microsoft (MSFT.O),  Alphabet (GOOGL.O), Meta (META.O), and Amazon (AMZN.O) along with other companies, have proposed an alternative framework for how data centers pay for power in Ohio, according to documents filed with regulators on Thursday.

The companies had been fighting a proposal brought by utility AEP Ohio in May that would require data centers and cryptocurrency miners to provide pre-payments and other financial assurances for their massive energy needs. AEP said at the time it was overloaded with requests from those two groups.

A growing number of U.S. states are receiving an influx of power demand from data centers as Big Tech rushes to acquire large amounts of electricity to expand technology such as generative AI.

The Ohio dispute is among the regulatory battles underway that may set precedents for how the U.S. power industry will manage the fast-moving expansion of data centers and who will pay to accommodate their demand.

The explosion in power requests prompted AEP Ohio this year to pause new contracts for data centers, the company said when it filed for the tariffs.

Big Tech, power companies, including Constellation Energy (CEG.O),  and One Energy Enterprises, along with others, later opposed AEP.

Some of those companies have now offered to settle the case by laying out their own set of rules before regulators. Those terms include broadening the range of customers that would fall under AEP’s rules to include any industry with loads of more than 50 megawatts at a single location. The proposal also changes the circumstances under which big new power customers must pay for costs such as transmission upgrades.

The PUC of Ohio would have to approve any settlement.