- A new study finds Ohio could face energy shortfalls by 2027 if the state’s electrical grid isn’t strengthened.
- The increased energy demand stems from Ohio’s recent success in attracting major companies.
- Without sufficient planning, Ohio risks losing out on future economic development opportunities.
Ohio could face an energy shortfall within two years if something isn’t done to bolster the electrical grid the state relies on, a new study released Wednesday found.
If something isn’t done by 2027, blackouts during severe weather could become more common, energy costs may increase and businesses considering a home in Ohio may look elsewhere, said Pat Tiberi, chief executive officer of the Ohio Business Roundtable, the organization that released the study.
Joined by the leader of JobsOhio, One Columbus and the Cleveland Partnership, Tiberi on Wednesday called for reform, including a new state Office of Energy Resilience to be established by the governor.
“We need more energy planning,” Tiberi said. “Without proper planning and plenty of energy, we may lose out on economic development opportunities because of the power we may not have in the future to provide.”
The pitch for a new state office was one of six recommendations leaders made Wednesday. Among the other recommendations made were:
- Establishing priority investment areas that would include former coal and brownfield sites, and offering tax incentives and expedited permitting to encourage development.
- Bolstering resources by streamlining and limiting the permit process to 90 days. In some cases, Tiberi said, it has stretched beyond 600 days in the past.
- Reducing regulatory lag times between when a utility incurs costs and can recoup them.
- Improving grid technology while commissioning a study for the best ways to use new tech.
- Encouraging investment in so-called “behind-the-meter” power generation by customers and enabling “microgrids” for industrial parks.
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The increase in energy demand is due to Ohio’s recent wins in attracting companies such as Intel, Anduril, Amazon Web Services, Meta, Honda and more, said J.P. Nauseef, president and CEO of JobsOhio, the state’s private nonprofit economic development corporation.
“Make no mistake, Ohio’s demand for energy is skyrocketing because Ohio is thriving,” Nauseef said.
More energy is needed, Nauseef said, to power the rise in data centers across Ohio and to support upcoming manufacturing projects from chip-maker Intel and defense tech company Anduril, which announced in January it would open its Arsenal 1 hub at Rickenbacker International Airport.
Ohio is currently in competition for 10 other so-called “mega projects” the likes of Intel and Anduril, Nauseef said. Between those opportunities and the rise of artificial intelligence technology, Nauseef said energy needs will likely only rise in Ohio in the coming years.
“Artificial intelligence will accelerate the need for more energy,” he said. “And it isn’t just AI, as manufacturing wants to be in Ohio as well and those businesses will need power connections in order to sustain their growth.”
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As data centers have popped up throughout central Ohio, they’ve brought with them concerns about electricity use. Ohio’s surge in data centers means the state could eat up so much electricity that demand for power in the Columbus region will be similar to all of Manhattan by 2030, according to American Electric Power.
As of 2024, Ohio had 1.2 gigawatts of datacenter capacity, but demand could grow to 15 gigawatts by 2034, according to the study.
The Ohio Business Roundtable’s report represents a “starting point” for what Ohio needs to become a national leader in increasing energy capacity, said Kenny McDonald president and CEO of One Columbus, an economic development organization that supports an 11-county region around Columbus.
Ohio has become a leader in cloud computing, McDonald said, and in order to remain one the state needs to take “bold actions” to upgrade its infrastructure before it’s too late.
“The recommendations are clear, they’re balanced, they’re measured,” McDonald said. “We have a lot of work to do.”
@MaxFilby