PJM Filed Study Agreement for Ohio AI Data Center
The 10-GW Flagship project in Pike County will undergo grid reliability studies to assess power and infrastructure impacts.
Updated on Oct. 14, 2026 in Data Centers
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PJM Interconnection has filed a study agreement with federal regulators for the Flagship AI data center project located at the former Portsmouth Gaseous Diffusion Plant in Ohio. The proposal encompasses 10 GW of total capacity, with the initial phase relying on 800 MW of power from AEP Ohio.
Why it matters
The project represents a massive expansion in data center energy demand, requiring 10.2 GW of new gas-fired generation and three 765-kV transmission lines to maintain grid stability. This filing initiates the regulatory process to determine how these immense infrastructure costs will be allocated.
The study agreement evaluates 9.6 GW of new data center load against 10.2 GW of proposed gas-fired generation capacity. The plan includes the construction of three 765-kV transmission lines to support the power requirements of the site.
The players
PJM Interconnection
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
A renewable energy and infrastructure developer focusing on large-scale power generation and facility integration for massive compute clusters.
AEP Ohio
A subsidiary of American Electric Power serving as a major regional utility provider and transmission operator in the state.
Federal Energy Regulatory Commission
An independent federal agency that regulates the interstate transmission of electricity, natural gas, and oil.
Public Utilities Commission of Ohio
The state agency responsible for overseeing utility service rates and infrastructure development standards across Ohio.
The details
PJM will analyze the project using a state agreement approach, a framework that coordinates local utility infrastructure requirements with regional grid planning. Reliability studies will determine if existing transmission facilities can accommodate the new load or if significant grid upgrades are required to prevent regional congestion. SB Energy has committed to funding the necessary gas-fired generation, which involves building 10.2 GW of capacity in phases through 2032 to avoid shifting costs to existing retail customers.
Timeline
February 2026: The White House announced the initial Flagship project.
September 25, 2026: The study agreement was formally executed.
October 13, 2026: PJM filed the study agreement with the Federal Energy Regulatory Commission.
2032: The planned completion year for generation and transmission infrastructure.
The Tech Race
The Flagship project utilizes the site of the former Portsmouth Gaseous Diffusion Plant to establish a massive power and compute hub. This follows a trend of siting AI data centers at retired industrial or nuclear brownfields to access existing high-capacity electrical grid interconnections.
Residents and businesses in Ohio may see grid reliability impacts as local utilities adjust to the significant increase in projected power load. Final project viability depends on future Public Utilities Commission of Ohio and FERC proceedings regarding how infrastructure costs are allocated.
The takeaway
The Flagship project signals a shift toward massive, dedicated power generation to support AI infrastructure needs. Watch for future FERC proceedings regarding cost allocation, which will determine how these large-scale grid upgrades affect regional energy markets.
Further reading
Learn more about how large-scale infrastructure impacts the grid on our Data Centers page.
Source note: This article includes information reported by Utility Dive.
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