Ohio Utility Commission Ruling Clears Path for Data Center Development

A New Cost Structure for Large-Load Growth

The approved framework addresses a challenge that utilities and regulators are confronting nationwide: how to equitably fund the infrastructure required to support large, energy-intensive developments—particularly those driven by hyperscale computing and artificial intelligence workloads.

Under the new rules, data center customers requesting high-capacity electric service must commit to at least 85% of their allocated load over a 12-year term, with a four-year ramp-up period. This replaces a previous model in which infrastructure costs were often spread across the full customer base, raising concerns about fairness and financial risk for residential and small-business ratepayers.

The framework also introduces a “sliding scale” commitment option, which provides flexibility for phased or smaller-scale projects. Customers must demonstrate financial viability and are subject to exit fees if they do not fulfill their long-term capacity obligations. These measures are designed to reduce stranded investment risk while enabling critical grid enhancements tied to economic development.

Project Planning Resumes After Regulatory Uncertainty

The ruling ends a moratorium that had temporarily paused new large-load interconnection requests in parts of Central Ohio. That pause had been instituted due to uncertainty about how to recover the substantial infrastructure investments required by these projects. With a formal cost-recovery mechanism now approved, new project applications are expected to move forward under more predictable terms.

For developers, the ruling provides greater visibility into the financial and contractual requirements for securing long-term energy access. Site selection decisions, energy procurement strategies, and permitting timelines can now be aligned with clearer infrastructure commitments and regulatory expectations.

Connect with DMA’s credits and incentives experts to assess how this ruling could impact your next data center project. 

Strategic Considerations for Data Center Developers

This decision represents more than a regional regulatory update—it reflects a broader trend emerging across U.S. utility markets. As demand for high-capacity electric service grows, regulators and utilities are increasingly requiring large-load customers to assume a greater share of the infrastructure cost burden. This evolution signals a shift toward more customer-specific cost modeling, reduced reliance on ratepayer subsidies, and stronger alignment between energy usage and grid investment.

From a development standpoint, the ruling introduces new planning considerations for data center operators. Financial modeling must now account for capacity commitments, potential exit penalties, and infrastructure-related obligations tied to phased buildouts or partial utilization. These requirements underscore the need for long-term energy assurance strategies and deeper coordination with utility planning processes.

DMA Analysis: Implications for Energy Market Strategy

For decision-makers in the data center sector, this regulatory change highlights a critical inflection point in energy infrastructure planning. The move to tie infrastructure funding directly to high-load customer commitments reflects a growing consensus: large-scale energy consumers must participate more directly in the cost and risk associated with their impact on the grid.

This model—requiring capacity guarantees, scaled commitments, and financial assurances—may serve as a template for other jurisdictions facing similar pressures. As utilities across the country manage rising interconnection requests, limited grid capacity, and investment backlogs, policies like this one are likely to become more common.

From a site selection perspective, this shift fundamentally changes how data center developers evaluate site feasibility and energy procurement risk. In addition to myriad other considerations, power sourcing decisions must now also integrate cost-of-service forecasting, infrastructure participation requirements, and long-term contractual exposure. Simply put, access to energy is no longer just about availability—it’s about accountability.

Stakeholders that proactively align with these evolving utility frameworks will be better positioned to navigate future development cycles and secure sustainable, scalable access to energy in competitive markets.