Electricity demand is growing rapidly across Ohio and the country, and data centers are a big part of that conversation. As new technologies, artificial intelligence, and cloud-based services expand, so does the need for reliable, around-the-clock power.
At the same time, the overall supply of electricity is tightening. Power plants have retired in recent years, and while new generation is being added, it doesn’t always keep pace with demand—especially during extreme hot and cold weather. This imbalance between supply and demand is one of the key factors driving higher energy costs in today’s market.
What This Means for You
As a member of an electric co-op, you're in a unique position.
Unlike investor-owned utilities, electric co-ops operate at cost and own their power generation. That means your rates are designed to be stable and predictable - not driven by market volatility or profit margins. While others may experience sharp spikes, co-op members are better protected from those swings.
Where Data Centers Fit In
Data centers use a significant amount of electricity, and their growth is increasing demand across the regional grid, including here in Northeast Indiana and Northwest Ohio.
But when it comes to serving a data center locally, one thing is clear: it must be done carefully and responsibly.
If structured correctly, a large new load like a data center could actually benefit cooperative members by:
- Spreading system costs across more energy use
- Potentially lowering kWh costs
- Supporting long-term rate stability
However, those benefits only happen if the right protections are in place.
Our Approach: Protecting Members First
While we have an obligation to serve all members located in our territory, we approach this topic with caution and careful planning. Any potential data center project would require:
- Full cost responsibility for the infrastructure, transmission, and generation needed to serve it
- Firm, long-term commitments to ensure costs are not shifted to members if a project doesn't materialize or leaves early
- Reliable power supply in place before adding new demand
- Clear benefits for the entire membership, not just a short-term opportunity
We will not move forward with any project unless it protects affordability, maintains reliability, and aligns with our co-op principles.
A Shared Grid, A Bigger Picture
Even though your co-op is well-positioned with generation through Buckeye Power, we are part of a larger regional grid, PJM. Rapid data center growth across that system is already creating new challenges around power supply, transmission capacity, and long-term reliability.
That's why we continue to actively monitor developments, advocate for responsible planning, and ensure our members' interests are represented at every level.
New Rate Specifically For Data Centers
Ohio’s Electric Cooperatives have established a new, distinct rate schedule for high-load, energy-intensive data centers to help keep power reliable and affordable for current members. The Buckeye Power Board approved the new data center rate schedule in March 2026. It assigns the full cost of serving data centers directly to those customers while preserving reliability and affordability for residential, farm, and small business members.
View OEC's press release below.
Learn More
We know this is a complex and important topic. To help, we've provided additional resources below:
- Frequently Asked Questions
- Detailed information on power supply, demand, and data centers
- Common Misconceptions & Realities
Myth: Data centers are incredibly noisy and disruptive to nearby communities.
Reality: Most of the noise — cooling fans and HVAC equipment — stays well within regulatory limits and is largely contained inside the building. Modern facilities are engineered with sound dampening so that neighbors rarely notice anything beyond a low ambient hum, comparable to background road traffic.
Myth: Data centers consume absurd amounts of water with no regard for local resources.
Reality: While cooling does require water, the industry has made major strides here. Many modern facilities use air-side economization — drawing in cool outside air — so they need little or no water for large parts of the year. Others recycle and reclaim water on-site. Some systems are closed-loop, meaning once the tank is filled, it can last many years. Water usage is increasingly tracked and reported as a public metric. Water Usage Effectiveness (WUE) is now a standard industry benchmark.
Myth: Data centers are massive carbon polluters that make climate goals impossible.
Reality: Energy efficiency in data centers has improved dramatically. Power Usage Effectiveness (PUE) scores close to 1.0 mean almost all energy drawn goes directly to computing, not waste heat. Many large operators have signed long-term renewable energy agreements.
Myth: Data centers bring no real benefit to local communities — they're just giant server warehouses.
Reality: A single large data center can generate hundreds of millions in local tax revenue and fund public infrastructure improvements as part of its permitting process. They also create long-term skilled jobs in operations, security, and engineering — and their power contracts often help utilities justify investments in renewable energy infrastructure that benefits the whole region.
Myth: Data centers are dangerous — they could explode, catch fire, or leak hazardous chemicals.
Reality: Data centers are among the most fire-safe industrial buildings constructed today. They use advanced suppression systems, redundant electrical protections, and are subject to rigorous building and fire codes. The backup generators do store diesel fuel, but quantities and containment standards are strictly regulated — no different from a large hospital or office complex.
Note: Sources vary by region and operator. Figures improve year over year as the industry invests in efficiency and sustainability programs.