City leaders weigh franchise agreement with AES Ohio to power data center | WHIO-TV
Piqua city leaders are considering a franchise agreement with AES Ohio to provide power for a new hyperscale AI data center. Residents are concerned about potential increases in power bills due to the added demand, despite assurances that the data center will pay for infrastructure upgrades and residential rates will not be affected. A vote on the agreement is expected next month.
The Piqua City Commission is moving forward with plans for a new hyperscale AI data center, despite significant public opposition. A key step in this process involves a proposed franchise agreement with AES Ohio, a utility company, to supply the necessary power. The city currently lacks the infrastructure to provide power for such a large facility, prompting the need for this agreement.
During a recent meeting, dozens of residents urged the Piqua City Commission to reject the agreement. Concerns primarily revolved around potential increases in power bills for existing residents and businesses, a fear expressed by citizens like Tip Coington. While the specific data center company remains unnamed due to a non-disclosure agreement, city officials state the company has agreed to cover all infrastructure upgrade costs.
AES Ohio maintains that its contracts with large-scale customers, like data centers, are structured to prevent residential and business power bills from changing due to added demand, adhering to regulations. However, some residents remain skeptical, arguing that increased demand without new supply would inevitably lead to higher prices. The Piqua City Commissioners are slated to vote on the franchise agreement at a meeting next month.