data centre Gridlock in Ohio

An oversight group for Ohio’s electric grid operator, PJM Interconnection, is asking federal officials to weigh in on the future of data centers. Monitoring Analytics,PJM’s self-reliant market monitor,contends reliability should be PJM’s priority. But recent proposals contemplate bringing data centers online despite the possibility of periodic blackouts.

Monitoring Analytics wants the Federal Energy Regulatory Commission to clarify that PJM can, and should, halt data center interconnection if it doesn’t have adequate power.

Ohio background

There are more than 200 data centers in Ohio already, and American Electric power has claimed 30 gigawatts-worth of proposed data center projects want to connect to the grid.

For context, peak load for the entire state of Ohio was 9.4 gigawatts in 2023.

To manage that demand, AEP instituted a moratorium on new data centers and lobbied state regulators for a new data center-specific tariff wiht minimum purchase requirements and exit fees if a facility folds.

Ohio regulators approved the pricing plan, over the objection of The Ohio Manufacturers’ Association and others.

The group is currently challenging the tariff in the Ohio Supreme court.

The ohio Manufacturers’ Association contends AEP didn’t have the right to declare a moratorium in the first place, and that it hasn’t backed up its claims about prospective demand.

in September, after regulators approved the tariff, AEP cut its forecasts from 30 gigawatts to 13.

A recent study funded by the Ohio Chamber Foundation indicated companies like Amazon, Google