Ohio Data Center Energy Demand Could Raise Customer Rates
Posted onWill Ohio Customer Rates Rise?
It's no secret that energy demand rises every year. But right now, Ohio ratepayers may face faster rising electricity rates as developers build more data centers. This is because new data centers require much more energy than Ohio generators produce. Let's talk about data center energy demand and what this means for your Ohio energy rates.
Data Centers And High Energy Demand
Recent tech developments in AI have created a boom of data centers across the country. These facilities can use hundreds of megawatts (MW). According to PJM, auctions for the 2025-2026 season are already showing signs of potential shortage when compared to 2024. Furthermore, data center usage could lead to energy capacity shortages as soon as June 2026!
Experts note that many data centers now consume about 600 MW or more on their own. Some Ohio utilities further forecast that this could expand to as much as 5000 MW by 2030. Obviously, this is too much for current plants to handle. So some data centers are building on site power plants to cover their need.
For example, one Ohio based data center plans to build a natural gas fueled power plant. This plant would generate about 120 MW. In contrast, the average Ohio home uses only about 811 kWh per month. This means this plant could power one average home for over 12 years.
How Lawmakers React To Energy Demand
It's clear to lawmakers that Ohio needs new energy sources. At this time, House Bill 15 may help answer this need for more energy. At present, most of Ohio's power comes from natural gas. One way to expand the state's energy capacity is to also include coal and nuclear. This need has also brought support for utility scale solar from business groups that once opposed them.
How High Demand Affects Electricity Rates
We often talk about how energy demand affects prices. But the data center boom could pose a year-round strain on Ohio's energy resources. While we can't predict exactly, one study says electricity rates could rise 50% by 2030.
New power plants could help bridge the gap. But, this requires grid expansion to connect both power plants and data centers. This costs would likely to be passed on to customers. As a result, higher bills may be in Ohio's future.
Thankfully, customers can help offset rising rates by locking in cheap plans. You can always start shopping right here at https://www.ohenergyratings.com. You can also count on us for the news that could affect your bills.
