AEP Boosts Five-Year U.S. Power Spending Plan to $78 Billion

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Only three months after releasing a five-year spending plan of $72 billion, American Electric Power has increased planned spending through 2030 by 8% to $78 billion after taking on multiple large-load agreements.

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A $6 Billion Spending Boost

Columbus, Ohio-based power company American Electric Power (AEP) has boosted its spending plan over the next five years by 8% to $78 billion. The move comes less than three months after the company announced a $72 billion five-year plan in February. At that time, AEP said it had identified between $5 billion and $8 billion in additional power transmission and generation projects.

Those numbers were realized quickly. On Tuesday, AEP said that it had signed 7 gigawatts (GW) of large-load energy agreements during the first quarter of this year, pushing the company's total contracted incremental load to 63 gigawatts by 2030 across its service territory. A majority of this comes from Texas, where AEP primarily provides transmission and distribution services in the state's mostly deregulated power market. Industrial Info Resources data find that AEP has about $6.8 billion worth of power transmission and distribution (T&D) construction lined up for Texas. AEP said the feasibility and timing of much of its planned Texas work depends on when and where generating assets are added in the state.

AEP's Texas Construction

Multiple AEP T&D construction projects are expected to kick off in Texas this year, most notably the Winfield-Winnsboro transmission line rebuild in the northeast of the state. The project entails replacing the 69-kilovolt line with equipment possessing a higher mega volt-ampere reactive (MVAR) rating as well as replacing wooden poles with steel. Industrial Info Resources data find just shy of 30 miles of transmission infrastructure will be affected, and the project will last through early 2028. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Power Project Database can click here to view the related reports on the project.

Ohio Power Construction

AEP also pointed to Ohio, where Industrial Info Resources is tracking $3.5 billion in planned AEP generation and T&D construction, as adding a significant amount of contracted power load during the first quarter.

Of AEP's Ohio T&D projects currently under construction, the largest is the company's rebuild of a transmission line between Fostoria and Lima, a distance of around 50 miles. Certain segments of the project have been completed, while AEP continues the rebuild of the 138-kilovolt line from its North Woodcock substation to Fostoria and carries on upgrades to its East Lima substation. The remainder of the project is expected to wrap up in the second half of 2027.

AEP said most of the 63 GW of load additions expected by 2030 came from data centers, and later this year in Ohio, the company is expected to take a somewhat novel approach to powering data centers: natural gas fuel cells. While the technology behind this method of supplying power is undoubtedly complex, it essentially uses a non-combustion reaction from natural gas to convert the fuel into what AEP calls "high-efficiency electricity."This is done by initially separating the hydrogen from the natural gas molecule and using the fuel from that point.

While more than one of these projects is in the pipeline, construction of the first fuel cell project is expected to kick off later this year, supplying just shy of 73 megawatts to Amazon's data center in Hilliard. According to Industrial Info Resources data, construction is expected to last about a year, putting the $458 million facility on track to begin supplying power in the early fall of next year. Subscribers can learn more by viewing the project report. A final building at Amazon's Hilliard data center is expected to be completed in the summer of 2027.

Other AEP Construction

Overall, Industrial Info Resources is tracking more than 400 AEP projects valued at $28.6 billion across 11 states. In addition to Texas and Ohio, Indiana, Virginia and West Virginia also represent prime destinations for AEP construction. AEP's Indiana project load is heavily weighted by two potential small modular reactor (SMR) projects, which would not occur until years in the future. Before construction is even anticipated to start on the SMRs, AEP hopes to have a 690-MW natural gas fired plant up and running at its existing coal-fired facility in Rockport, Indiana. AEP was expected to close the bidding process for a steady supply of natural gas to the plant site this week, selecting the winning bidder in June.

AEP reported first-quarter 2026 earnings of $874 million, compared with $800 million in the prior year.

Key Takeaways

• American Electric Power has boosted its five-year spending through 2030 to $78 billion.
• The company now expects 63 GW of new load by 2030.
• Texas, where AEP primarily provides T&D services, represents the majority of this expected load growth, largely from data centers.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).