A data center is the physical facility that stores digital data and contains computing machines and related equipment, including the computing infrastructure that information systems require such as servers, data storage drives and network equipment, according to the website of Amazon Web Services, the Amazon subsidiary that provides cloud technologies.
No information is available on the possible size, cost or employment numbers of a possible data center in Fayette County. Amazon has not applied for building permits for a structure, said Craig Breedlove, Fayette County building official.
This news outlet on Sunday first reported that a new Amazon data center near Jeffersonville was possible after a reporter reviewed documents filed earlier this month by the Office of the Ohio Consumers’ Counsel (OCC) with the Federal Energy Regulatory Commission (FERC).
The OCC filed the “protest” with FERC, saying that it wants to ensure that the costs from AES Ohio’s electric transmission investments for the possible Amazon data center are paid by the “cost causer,” which would be Amazon, and not passed on to residential customers.
Milazzo on Wednesday issued a statement about how the company works with utilities on transmission costs.
“Amazon pays transmission costs at rates established by utility regulators to make sure we are paying our fair share of the costs for electricity. We work closely with utilities and grid operators to plan for future growth, and where we require specific infrastructure to meet our needs (such as new substations), we work to make sure that we’re covering those costs and that they aren’t being passed on to other ratepayers,” the statement said.
AES, formerly known as Dayton Power & Light, has not yet responded to this news outlet’s request for comment.
The OCC filing said the possible data center would be located at the Midwest Mega Commerce Center in Fayette County’s Jefferson Township and that operations could start in September 2026.
That commerce center is where the Honda-LG Energy Solution electric battery plant is being built.
Data centers require large amounts of electricity for servers, and equipment to keep servers and networking equipment cool. Costs for electricity transmission facilities serving the first phase of the possible data center would exceed $22 million, the OCC filing says.
According to the OCC filing AES Ohio says the agreement with Amazon is narrowly tailored and protects other consumers from having to share upgrade costs in the event the data center does not achieve commercial operations or take on a minimum level of service.
“While AES Ohio represents that the agreement is protective of other AES consumers, it notes that it intends to seek rolled-in rate treatment for the costs of the network upgrades in subsequent proceedings before the appropriate state and/or federal regulatory agencies,” the OCC filing states. “This is cause for concern for all customers who likely would be responsible for paying for those costs.”
The OCC said it reserved the right to challenge any rate treatment that would unfairly impact residential consumers.
Amazon Web Services-Ohio investments
• $10.3 billion in capital and operating expenditures in Ohio between 2015-2023.
• In June 2023, AWS announced plans to invest an additional $7.8 billion by 2030 to expand data center operations in Ohio.
• 4,760 estimated full-time equivalent jobs annually are supported by AWS investment and the resulting economic impact.
• Investments support jobs in telecommunications, software development, facilities maintenance, electricity generation and other sectors within the AWS supply chain.
• In 2023 AWS paid $5.5 million in property taxes and fees in Ohio.
Source: Amazon Web Services
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