Ohio to Face Potential Energy Shortfall by 2027, Study Warns
Ohio could face an energy shortfall within the next two years unless significant measures are taken to strengthen the state’s electrical grid, according to a recent study by the Ohio Business Roundtable.
Without action by 2027, the state may experience more frequent blackouts during severe weather, rising energy costs, and potential economic setbacks as businesses reconsider investing in Ohio, warned Pat Tiberi, Ohio Business Roundtable’s CEO.
Joined by the leader of JobsOhio, One Columbus, and the Cleveland Partnership, Tiberi emphasized the need for energy reform and proposed the establishment of a new state Office of Energy Resilience to oversee long-term planning.
“We need more energy planning,” Tiberi stated. “Without proper planning and plenty of energy, we may lose out on economic development opportunities because of the power we may not have in the future to provide.“
Key Recommendations for Strengthening Ohio’s Energy Grid
Aside from the suggested new state office, here are the other recommendations from the leaders to ensure Ohio meets its growing energy demands:
- Establish Priority Investment Areas: Focus on developing former coal and brownfield sites while offering tax incentives and expedited permits to encourage energy projects.
- Streamline the Permitting Process: Limit energy-related permit reviews to 90 days—down from the current process, which has sometimes exceeded 600 days.
- Reduce Regulatory Delays: Ensure utilities can recoup costs more quickly to support ongoing investments in the grid.
- Advance Grid Technology: Invest in modern infrastructure while commissioning studies on emerging energy solutions.
- Encourage “Behind-the-Meter” Power Generation: Support businesses and industrial parks in generating their own electricity through microgrids.
Ohio’s Booming Economy Driving Energy Demand
The rising energy demand is directly tied to Ohio’s economic growth, which is fueled by major corporations such as Intel, Anduril, Amazon Web Services, Meta, and Honda expanding within the state, according to J.P. Nauseef, president and CEO of JobsOhio.
“Make no mistake, Ohio’s demand for energy is skyrocketing because Ohio is thriving,” Nauseef stated.
Ohio’s increasing energy demand is primarily driven by the rapid expansion of data centers and significant manufacturing projects, according to Nauseef. Notably, chip manufacturer Intel and defense technology company Anduril are establishing operations in the state, with Anduril’s Arsenal 1 hub set to launch at Rickenbacker International Airport. As a result, energy needs are surging.
Nauseef also mentioned that Ohio is competing for ten additional “mega projects” similar to those of Intel and Anduril. Coupled with the rise of artificial intelligence, the state’s energy demand is projected to grow substantially in the coming years.
“Artificial intelligence will accelerate the need for more energy,” he said. “And it isn’t just AI, as manufacturing wants to be in Ohio as well and those businesses will need power connections in order to sustain their growth.”
Data centers, in particular, have surged across central Ohio, leading to increased electricity consumption. If demand continues to rise as projected, the Columbus region could require as much power as all of Manhattan by 2030, according to American Electric Power.
As of 2024, Ohio had 1.2 gigawatts of data center capacity, but demand is expected to soar to 15 gigawatts by 2034, the study found.
The Ohio Business Roundtable’s report marks the beginning of Ohio’s efforts to establish itself as a national leader in energy capacity, according to Kenny McDonald, president and CEO of One Columbus, an economic development organization serving an 11-county region around Columbus.
McDonald pointed out that Ohio has already become a leader in cloud computing; however, to preserve its competitive advantage, the state must take bold and proactive steps to upgrade its infrastructure before the demand exceeds supply.
