The data is clear — AI and other tech are consuming our electric grid: Molly Bryden

Guest columnist Molly Bryden is Policy Matters Ohio’s climate and sustainability researcher.

Across Ohio, technology companies are racing to build data centers — massive facilities necessary for digital technologies ranging from artificial intelligence to cryptocurrency.

And a handful of billionaires are raking in the profits, with Ohioans paying the price for the extraordinary strain data centers put on our energy grid and natural resources.

In July 2025, the average residential electricity bill in Ohio was 23.3 percent higher than in the previous year — the third-largest increase in the country.

The spike was driven by increased demand from data centers and the failure by PJM Interconnection — the regional grid operator serving Ohio and 12 other states — to manage a backlog of large-scale generation projects, most of which involve renewable or energy storage technologies.

The imbalance between energy supply and demand driven by data centers is the leading cause of your skyrocketing electricity bills.

Rather than addressing this issue, state policymakers have created roadblocks for large-scale clean energy projects that could have mitigated the supply shortfall and moderated rate increases.

Because Ohio allows county commissioners to restrict utility-scale renewable projects — requiring developers to hold public meetings before a project can be approved — a number of large-scale solar projects have been scuttled.

There is no such state-imposed requirement for data centers, which are responsible for most of the load growth that’s causing the energy crisis.

Instead, the level of community oversight and accountability depends on local zoning regulations, raising the question: Why are lawmakers incentivizing wealthy developers to extract from our communities through expensive tax breaks for data centers while hindering projects that would cut costs for Ohioans?

Legislators have a variety of policy options that, in addition to supporting new clean energy projects, would protect consumers from soaring utility bills, improve grid reliability and regulate data-center development.

The Public Utilities Commission of Ohio’s recent approval of a data center-specific tariff in AEP’s territory — which has a large data center presence — is a start.

Ohio lawmakers could build on this progress by establishing a statewide data center tariff, requiring large-load customers to absorb more of the costs associated with grid upgrades and infrastructure investments needed to connect them to the grid.

Other states are also scrambling to mitigate risks posed by the rapid proliferation of resource-intensive data centers.

For example, Georgia requires data centers to pay for upstream infrastructure costs associated with meeting their energy demand, preventing cost-shifting to other ratepayers.

Oregon has passed legislation to do so, and other state legislatures are considering similar proposals.

Texas passed legislation requiring large-load customers to cover interconnection and transmission costs, while establishing a reliability service to curtail data centers’ demand during energy emergencies — a large-scale version of the demand response program proposed for residential and small commercial customers in Ohio.

Lawmakers could also require data centers to generate their own electricity or establish a community energy pilot program, which would increase in-state generation and bring down costs for participating households.

Other policy options include strengthening transparency and environmental reporting requirements, requiring developers to hold local public meetings and enhancing standards for connecting large loads to the grid.

Ohio needs comprehensive, proactive guardrails to protect communities navigating the data center boom.

This requires utility reform, ongoing efforts to enhance transparency and community oversight and expanded protections for residential ratepayers.

It’s time Ohio lawmakers prioritize Ohio’s working families, putting public welfare over private interests.

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