Data Centers in Our Backyard: Opportunities and Challenges in Our Community

As large data centers expand across Ohio, many Union County and Marysville residents are asking: How will these high-demand users affect our electric service, rates, and local development? These are important questions, especially since a single data center can use two to three times the electricity of URE’s entire system. Here’s what you need to know:

Understanding the Grid

URE is a distribution cooperative, responsible for delivering electricity to homes, farms, and businesses. Power generation comes from Buckeye Power, a co-op-owned resource. Buckeye generates enough electricity to cover the needs of co-op members across the state.

High-voltage transmission lines owned by investor-owned utilities, connect generation to local distribution substations. PJM, the regional grid operator, balances supply and demand across 13 states and coordinates planning and wholesale markets.

While large data centers don’t directly stress URE’s poles and wires, their huge draw from the transmission system impacts the grid upline from us. Transmission utilities and PJM must work together to ensure the system remains reliable when these large facilities come online.

Reliability and Rolling Blackouts

One concern we often hear is whether data centers might contribute to rolling blackouts. The short answer is no, at least not if planned properly.

Rolling blackouts are typically caused by two things: lack of generation or transmission capacity during peak demand or extreme events. If new large loads like data centers are added without sufficient upgrades to generation or transmission infrastructure, it can increase the risk of grid stress. But that’s exactly why utilities require that upgrades to generation and transmission take place before these large loads are allowed to come online.

In fact, grid operators like PJM and utilities rely on tools like demand response, in which large users temporarily reduce consumption during emergencies, to help prevent blackouts. Data centers are often required to participate in these programs, dialing down non-essential power use when needed. If operated correctly and effectively, these facilities could help support grid stability by providing load reduction during peaks.

However, if utilities fail to plan or build infrastructure fast enough, adding massive data center loads could create congestion or reliability risks. That’s why URE, Buckeye Power, and our transmission partners conduct rigorous system studies before approving any new large connections. Protecting reliability for our members is always the top priority.

Why Firm Commitments Matter

Connecting a large new load to the grid takes years of planning. Utilities require firm contracts, upfront infrastructure payments, and financial assurances from data centers. This helps ensure that costs are paid by the large load developer, not by existing customers and co-op members.

One recent example of this in practice is the Public Utilities Commission of Ohio’s (PUCO) approval of a request by AEP-Ohio to charge data centers for a minimum of 85% of the energy they request — regardless of what they may actually use. This is intended to ensure other customers don’t subsidize the infrastructure intended to serve the data center.

Rest assured that for URE members, we will always thoroughly study the impact of any new large load project and ensure upgrades are in place before approving it for connection. Our goal is to ensure grid reliability remains strong — and also that data center-related costs are never shifted to our existing residents and businesses.

Benefits and Trade-Offs

Data centers bring benefits: major capital investment, limited but high-paying jobs, and broader infrastructure improvements that can strengthen the regional grid if thoughtfully added. Their presence may also attract other technology-focused businesses.

However, there are also trade-offs. Tax abatements may mean limited near-term public revenue. Water usage can be nearly as staggering as electric usage. And data centers provide fewer jobs per megawatt than traditional industry. Their 24/7 power use can affect grid dynamics, but under current policies, their impact on local electric bills should be minimal, as long as contracts are enforced, and new infrastructure costs are recovered.

The Bottom Line

Data centers are coming to our region. The key to successful integration is careful planning, regional cooperation, and avoiding cost shifting. URE’s role is to protect reliability and affordability for our members — and that will never change. As we welcome new development, we’ll keep putting you first, because we’re YOUR electric cooperative.