Electric bills are rising in Ohio. But are data centers to blame?
Ohio's electricity bills have significantly increased, leading to a debate over whether the state's data center boom is to blame. While data center advocates point to other factors, consumer groups argue data centers are stressing the grid and increasing costs for residents. A data center tariff approved by the Public Utilities Commission of Ohio is now being challenged in the state Supreme Court.
Electricity prices in Ohio have skyrocketed by 22% between February 2025 and February 2026, second only to Virginia. With over 230 data centers and more under construction, residents, community leaders, and politicians are raising concerns about rising electric bills, water waste, property taxes, and land use.
While data center proponents argue they are not solely responsible for the price increases, pro-consumer groups like Columbus Stand Up contend that data centers are straining the electric grid beyond its supply. Maureen Willis, Ohio Consumers' Counsel, stated that data centers have immense power needs, causing a huge increase in demand that would otherwise be flat or declining. The International Energy Agency reports that a typical AI data center uses as much electricity as 100,000 households.
Ohio's deregulated electricity market, which limits in-state generation and relies heavily on the PJM Interconnection grid, exacerbates the impact of increased demand. Matt Schilling, spokesperson for the Public Utilities Commission of Ohio (PUCO), noted that local data centers primarily impact customers in their immediate service areas, like AEP Ohio customers in Central Ohio. However, all Ohio users share the same grid.
In response to these issues, the PUCO approved a data center tariff in July 2025, proposed by AEP Ohio, requiring new large data centers within its service area to pay 85% of their contracted power capacity regardless of usage. This tariff, supported by the Ohio Consumers' Counsel, is now being challenged in the Ohio Supreme Court by tech companies and the Ohio Manufacturer's Association (OMA). The OMA, a staunch defender of data center growth, argues that data centers are a "scapegoat" and that utility companies inflate energy load forecasts to justify rate increases.