Public utilities across multiple states are implementing specialized tariffs targeting data centers as electricity demand reaches levels unseen since the 1960s. Ohio regulators recently approved American Electric Power's data center-specific tariff structure, while Indiana approved similar measures for Indiana Michigan Power Company earlier this year. These regulatory actions respond to projections showing data center electricity consumption could rise from 4.4% of total US usage in 2023 to potentially triple that figure by 2028.

The tariff implementations reflect growing concerns about cost allocation as utilities plan $1.1 trillion in new infrastructure investments over five years. States including Virginia, Texas, Kansas, and California are considering similar measures as Big Tech companies drive most of today's electricity demand growth. The revised Indiana tariff requires large-load customers to make long-term financial commitments proportional to their usage, particularly targeting Amazon, Microsoft, and Google operations.

Utility analysts note these tariffs address only part of the cost burden facing consumers, as capacity costs and new resource construction expenses may still impact residential bills. The regulatory shift marks a departure from traditional cost-sharing models where all customers subsidized grid expansion. Tech companies are challenging these tariffs through legal proceedings, with Amazon and Google representatives arguing the measures represent discriminatory pricing practices that deviate from established utility regulation principles.