GAHANNA, Ohio (WCMH) -- Electricity costs are rising for Ohioans and increased costs correlate with the tech boom in central Ohio.
The Washington Post found Columbus' typical monthly home electric bill jumped $27 this summer alone, and tied the price increases to the development of new data centers. State data corroborates the report; the average residential Columbus electricity bill rose $25.64 between April and July 2025. An AEP Ohio spokesperson said increased energy demands are raising prices.
Demand increase correlates with a rapid rise in data centers in central Ohio. According to Data Center Map, which tracks data center locations, 120 of Ohio's 188 data centers are in the Columbus area. Data centers require massive amounts of energy to operate, and just one data center can require the same electricity use as thousands of homes. See previous coverage of data centers' impacts in the video player above.
State records offer glimpse into Anduril's employment, site plans in OhioThe increased demand from data centers is complicated by Ohio's electricity laws. In 1999, Ohio became a deregulated state for electricity to prevent companies from raising rates without fear of competition. Deregulation means Ohioans have the freedom to choose their own electric supplier instead of having to use their area's utilities. However, deregulation also limits electricity generation in the state to protect consumer choice.
"AEP Ohio brings energy to our customers, but because Ohio is a deregulated state, we can’t generate energy," an AEP Ohio spokesperson said. "We — and more importantly, our customers — depend on the market to build new dispatchable generation to meet the demand."
Now, data centers are driving that demand up, raising prices for Ohioans. Electricity bills factor in transmission, distribution and generation costs, which all respond to supply and demand. Generation costs come from the cost to produce energy at a power plant, transmission costs cover the cost of transporting energy from a power plant to a regional substation, and distribution costs cover the transportation from substations to homes and businesses.
In Ohio, where generation is limited and companies like AEP Ohio are not allowed to build power plants, increased demand hikes up generation prices. Columbus saw double-digit cost increases around the same time data centers began really honing in on central Ohio in 2022 and 2023.
"The supply of energy that reliably can be called upon when demand is high simply isn’t keeping up," an AEP Ohio spokesperson said.
The state is trying to reduce energy costs, but it is difficult to proactively respond to energy demands. In May, Ohio Gov. Mike DeWine signed a law to incentivize energy generation and removed some subsidies for Ohioans, which goes into effect Aug. 14. Ohio's Public Utilities Commission also approved new rules for data centers in July, requiring them to bear the brunt of rising electric costs instead of consumers.
Will walleye make a splash as Ohio's state fish?Although data centers can contribute to individual Ohioans' rising electric costs, advocates say building new data centers is still beneficial. Dan Diorio, vice president of state policy for the national Data Center Coalition, told NBC4 in late June that data centers are a major economic boost for Ohio. He pointed to a report that found data centers provided 15,300 jobs and $3.6 billion to Ohio's GDP in 2023.
"The data center industry has very much shown that it's bringing that economic development, it's bringing that GDP growth, it's bringing those jobs and it's bringing that state and local tax revenue back to the state," Diorio said.
AEP Ohio said data centers are helping the state grow, and the new data center rate rules will help protect customers from future price increases. For now, AEP Ohio is implementing new fees for major energy use projects that range between $10,000 and $100,000, depending on how much electricity is needed.
Solutions are emerging but not as quickly as data centers are being built. The issue is also expected to increase; according to a December 2024 report from the Department of Energy, data centers could consume between 6.7% and 12% of all American electricity by 2028.
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