INDIANAPOLIS, IND. (WOWO) The nation’s growing demand for data centers is driving a major increase in projected electricity usage for one of the country’s largest utilities, according to new comments from American Electric Power leadership.
The American Electric Power says it expects its total power generation to nearly double by 2030, largely due to rapid expansion of data centers in Ohio and Texas.
Power demand forecast nearly doubles by 2030
During a recent earnings call, AEP President and CEO Bill Fehrman said the company expects to generate about 63 gigawatts of electricity nationally by 2030, compared to roughly 32 gigawatts today.
Fehrman said the majority of that growth will come from increased electricity demand tied to large-scale data center development, with smaller contributions from broader industrial expansion.
He estimated that about 90 percent of the new demand is connected to data centers, particularly in Ohio and Texas.
Infrastructure expansion needed across multiple states
Fehrman said meeting the projected demand will require significant investment in new transmission infrastructure and additional power generation.
He noted that about 53 gigawatts of the projected load is concentrated in Ohio and Texas, requiring large-scale grid expansion projects.
“We believe we excel at constructing and operating” transmission systems needed for the expansion, Fehrman said during the call.
The remaining projected demand will require new generation resources, with AEP stating it has already secured long-lead equipment to support planned development.
Rising costs and affordability concerns
The utility acknowledged that large-scale infrastructure investments could contribute to higher electricity costs for customers.
Fehrman said AEP is working with large commercial users, including data center operators, to help offset costs and reduce impacts on residential customers.
“Affordability is top of mind,” Fehrman said, adding that the company is focused on managing rate impacts for households while continuing to expand capacity.
Ohio energy costs and regulatory context
According to the U.S. Energy Information Administration, electricity industry revenue in Ohio increased by 22 percent year-over-year in 2026.
The report comes as utilities across the state, including American Electric Power Ohio, continue to face scrutiny over rising residential utility bills.
AEP previously sought rate increases tied to infrastructure expansion needs, though some proposals have faced public opposition and regulatory review through the Public Utilities Commission of Ohio.
Large-scale data center development cited
The company’s outlook reflects broader national trends, including major new data center projects and industrial expansions that require significant energy consumption.
Fehrman cited AEP’s long-term capital plan, which includes approximately $78 billion in investments over five years, as part of preparations to meet projected demand.
Public debate over energy growth and costs
Community advocates and policy groups have raised concerns about rising utility costs and the pace of infrastructure expansion, arguing that regulatory oversight should ensure affordability for residential customers.
At the same time, AEP officials say expanding digital infrastructure, including data centers, is a key driver of future energy demand and investment decisions.
Next steps
AEP says it will continue advancing infrastructure projects and working with regulators across its service territory as demand increases through the remainder of the decade. Utility rate decisions and new generation approvals will continue to be reviewed at the state level.
