The data center industry is experiencing a boom, leading to a surge in electricity demand in the U.S. after years of stagnation. Major tech companies like Amazon, Microsoft, Meta, and Google are investing heavily in data center projects in Ohio, contributing to the region's rising energy needs. AEP Ohio has reported receiving 30 gigawatts of service requests and has sought regulatory approval for a separate rate class for data centers to shield other customers from increased costs. Meanwhile, EdgeConnex, which shares ties with Powerconnex, is also developing a data center in New Albany, and Sixth Street Partners recently acquired a minority stake in EdgeConnex.
Key takeaways:
- Powerconnex plans to build a 120 MW natural gas plant in New Albany, Ohio, to power a data center on the same site.
- The data center and power plant are expected to be operational by the first quarter of 2026, addressing energy demands from AI and bypassing grid constraints.
- Developers are increasingly building on-site power plants to avoid regulatory bottlenecks and grid access issues in crowded data center markets.
- New Albany, Ohio, is experiencing a surge in electricity demand due to major data center projects by companies like Amazon, Microsoft, Meta, and Google.