The American utility company American Electric Power (AEP) has announced that it expects a significant increase in its energy load over the next five years, driven almost entirely by demand from data centers.
In its financial results for the second quarter of 2024, AEP reported that it has received commitments from customers for over 15GW of incremental load by the end of the decade, a figure driven by “robust demand from data centers.” This increase represents a 40% growth in the next six years compared to AEP’s current total load.
This growth is already materializing. The company saw a 12.4% increase in commercial load, which includes data centers, during the quarter.
“We continue to see strong interest in Ohio and Texas, as well as in several of our vertically integrated states, from customers looking to develop new data processing facilities,” said Ben Fowke, interim CEO and president of AEP. “To help meet the growing energy needs of our customers and communities, we are constantly advancing the transformation of our generation fleet with active requests for proposals and plans to add over 20GW of new resources in the next decade.”
During the results call with analysts, Fowke added, “These are not just inquiries, these are serious customers who want to connect to the grid and are willing to commit financially to make it happen.”
AEP, based in Ohio, operates over 64,000 kilometers of transmission lines, the largest electric transmission system in the country, and over 362,000 kilometers of distribution lines in 11 states, including Texas, Ohio, Oklahoma, Virginia, Tennessee, and Kentucky. The company has indicated that it plans to invest $43 billion in the next five years in network improvements.
The generation capacity that the company intends to add includes approximately 8GW of wind power, 6GW of solar power, and 5GW of natural gas.
This move strengthens AEP’s position as a key player in the U.S. energy sector, responding to the growing energy demand driven by the rise of data centers and digital transformation.
via: DCD