But just how much of a discount did Amazon receive? Exact numbers were redacted from public documents, and neither the company nor the state have disclosed the deal’s details. However, Buckeye Power, another energy provider in the state, has reportedly said that Amazon’s discount could be worth a staggering $135 million a year — a cost break for one of the world’s wealthiest companies that could ultimately be passed onto AEP customers. This comes on the heels of a previous rate reduction granted to Amazon from 2018-2023 that has also gone undisclosed.
This comes at a time when Ohioans are already seeing higher electric bills. In March, AEP was granted permission from the state to increase the standard transmission charges billed to ratepayers – raising the average customer’s bill by $10 a month. With the massive overhaul needed to improve the electric grid, and Amazon skirting the responsibility to pay for the improvements, it is reasonable to assume that ratepayers are likely to see even more significant future increases in their electric bills.
Data centers are necessary to power a modern world, but if taxpayers are expected to foot the bill for their energy usage, then at the very least these deals need to be made transparent. These energy discounts are on top of the already massive tax breaks Big Tech companies are receiving to build these data centers in Ohio. Amazon and state and local officials need to be upfront with taxpayers on how much of a break the tech giant is getting, and how these data centers are affecting Ohioans’ electric bills.
Orchestrating these secret backroom deals are Amazon’s army of lobbyists in Columbus. In just five months of 2024, the tech giant has lobbied on 16 bills in Ohio, including legislation regarding data storage and notifications issued by state agencies (HB 76) as well as a measure to update state agency data storage laws (SB 18).
On the executive level, Amazon has recently focused on issues related to data centers, lobbying the Ohio Department of Development and JobsOhio on decisions regarding “data center initiatives.” Given the massive influence of these lobbyists, it is unsurprising that Amazon has successfully kept the details of its tax breaks under lock and key.
Ohio’s energy grid is already stretched thin, and the seemingly never-ending stream of new data centers threaten the state’s infrastructure even more. With utility companies calling for an electric grid expansion, it should be up to Amazon and the other wealthy companies driving this increase to foot the bill. But when Ohio lawmakers are schmoozing with Amazon lobbyists and agreeing to backroom deals, taxpayers are the ones left footing the bill for wealthy Big Tech companies.
Dr. Jose Marquez, PhD is the CEO of the National Association of Latinos in Information Sciences and Technology (@Techlatino).