(Bloomberg) — Major data centers in Ohio will be required to pay at least 85% of the energy necessary to fund grid enhancements, as per a settlement that was submitted on Wednesday by one of the state’s largest utilities. 

The agreement was formulated by the Ohio utility that is a subsidiary of American Electric Power Company, along with the representatives of the state’s Public Utilities Commission, the state consumer advocate, a group of manufacturers, and other stakeholders, including Walmart. 

This settlement, which features a sliding scale for smaller and medium-sized data facilities, establishes a framework for lifting the ban on new data center contracts in central Ohio, according to AEP. The state PUC will need to approve the final decisions regarding the payments. 

This proposal emerges as governmental authorities and electricity suppliers are trying to determine who will be responsible for the anticipated increase in electricity usage driven by data centers engaged in artificial intelligence activities. In Central Ohio, it is projected that electricity demand could more than double by the year 2030. 

Earlier this month, data-center developers submitted a competing proposal that would have required them to pay a minimum of 75% of their energy use.

Welcome to DediRock, your trusted partner in high-performance hosting solutions. At DediRock, we specialize in providing dedicated servers, VPS hosting, and cloud services tailored to meet the unique needs of businesses and individuals alike. Our mission is to deliver reliable, scalable, and secure hosting solutions that empower our clients to achieve their digital goals. With a commitment to exceptional customer support, cutting-edge technology, and robust infrastructure, DediRock stands out as a leader in the hosting industry. Join us and experience the difference that dedicated service and unwavering reliability can make for your online presence. Launch our website.