Ohio AI Data Center Study Agreement Filed
PJM Interconnection has initiated a grid reliability study for the massive Flagship AI data center project in Pike County.
Updated on Oct. 14, 2026 in Data Centers
Live Poll
Should private companies be permitted to build large energy infrastructure projects on public land?
PJM Interconnection filed a study agreement with the Federal Energy Regulatory Commission to evaluate the 10 GW Flagship AI data center project. This development follows a state-requested review to integrate the project into Ohio's power grid.
Why it matters
The project seeks to establish a framework for funding significant new energy infrastructure while protecting existing utility customers from additional costs. It marks a critical step toward securing the necessary power for massive AI infrastructure in the region.
The Flagship project aims for a 10 GW capacity, beginning with an initial 800-MW power phase. Infrastructure plans include three 765-kV transmission lines and 10.2 GW of new gas-fired generation to support the load.
The players
PJM Interconnection
This is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.
SB Energy
This company is an energy developer and investor focused on building sustainable power infrastructure and large-scale renewable or gas-fired projects.
AEP Ohio
This is an electric utility company that provides power transmission and distribution services to millions of customers across the state of Ohio.
Public Utilities Commission of Ohio
This state agency is responsible for regulating providers of telecommunication, electricity, natural gas, water, and wastewater services in Ohio.
Federal Energy Regulatory Commission
This independent federal agency regulates the interstate transmission of electricity, natural gas, and oil in the United States.
The details
The project is situated at the Department of Energy's Portsmouth Gaseous Diffusion Plant, utilizing a state agreement approach for development. PJM will perform reliability studies to determine if existing transmission facilities can manage the project's energy requirements through 2032.
Timeline
The White House announced the Flagship project in February 2026.
The study agreement was officially executed on September 25, 2026.
PJM filed the study agreement with the Federal Energy Regulatory Commission on October 13, 2026.
SB Energy expects to complete generation and infrastructure phases by 2032.
The Tech Race
This project reflects the rapid expansion of AI infrastructure that is currently straining national electrical grids across the United States. It positions Ohio as a central hub for the next generation of massive data processing centers.
The study agreement aims to ensure that existing power customers in Ohio are not financially burdened by the infrastructure costs of the Flagship project. Local residents will see long-term energy planning efforts as the state balances this new load with grid reliability.
The takeaway
This project highlights how industrial-scale data needs are forcing a fundamental reassessment of regional power grid reliability and funding. Stakeholders should monitor upcoming regulatory hearings to see how state commissions protect consumer energy rates during these infrastructure expansions.
What happens next
Future proceedings at the Public Utilities Commission of Ohio and the Federal Energy Regulatory Commission will determine the final cost allocation for project-related infrastructure.
Further reading
Learn more about local infrastructure developments at Data Centers.
Source note: This article includes information reported by Utility Dive.
Live Poll
Should private companies be permitted to build large energy infrastructure projects on public land?
