Data Center Boom in the USA: American Electric Power Co. Plans Massive Expansion

A surge in data center construction in the USA will increase the power supply capacity of American Electric Power Co. (AEP) by 15 gigawatts by 2030 – equivalent to the output of 15 nuclear reactors. As company representatives announced on Tuesday, the utility plans a significant expansion of its offerings. This additional capacity represents 42% of AEP's current peak load and comes at a time when utilities worldwide are struggling to supply new data centers. The operation of complex artificial intelligence requires immense amounts of power and poses a significant challenge. Simultaneously, electrified factories and battery-powered cars are contributing to the largest growth in power demand that utilities have seen in a generation. This ongoing increase in demand marks an unprecedented change in the energy sector, presenting both opportunities and challenges.