Ohio and Virginia Implement Utility Tariffs on AI Data Centers

State regulators in Ohio and Virginia have implemented utility tariffs designed to prevent residential and business electricity ratepayers from absorbing the costs of AI data center infrastructure. These rules target large-scale energy users requiring at least 25 megawatts, mandating that they commit to long-term contracts and pay for reserved capacity regardless of actual utilization.

Ohio approved its tariff in July 2025, requiring commitments for the load-ramp period plus at least eight years. The measure has already reduced preliminary project inquiries from 30 gigawatts to 5.6 gigawatts of signed agreements. Meanwhile, Virginia established rules effective January 2027, requiring a minimum 14-year commitment and payments for a significant percentage of contracted transmission, distribution, and generation demand.

Both states aim to protect the electrical grid from stranded costs associated with speculative projects that may shrink or disappear. However, the Ohio Manufacturers’ Association has appealed the Ohio tariff, challenging the requirements placed on large-scale users.