Vice President JD Vance has introduced a policy condition requiring new data centers to actively support and stabilize the local power grid upon connection.

Vice President JD Vance is drawing a firm line on data center energy policy: if Big Tech wants to build massive AI facilities, those campuses must add capacity to the electrical grid rather than siphon existing supply. The objective is straightforward—to prevent the artificial intelligence boom from translating into higher electricity bills for everyday Americans.

The most concrete example of this policy taking shape is a proposed 10-gigawatt data center campus in Pike County, Ohio. To contextualize that figure, 10 gigawatts represents roughly enough electricity to power approximately 7.5 million homes.

SB Energy will lead the development, with plans calling for the construction of 10 gigawatts of new power generation capacity alongside the data center itself. Of that total, 9.2 gigawatts will come from natural gas generation. Additionally, private companies will fund an estimated $4.2 billion in grid upgrades required to support the project.

Vance has been blunt about the underlying logic, arguing that data centers should help lower electricity costs for citizens. “The data centers can afford it,” he stated.

This initiative does not exist in isolation. AI-related electricity consumption is projected to surpass 10% of total U.S. electricity use by 2030. The strain is particularly acute within the PJM Interconnection region, the grid operator covering 13 states and Washington, D.C. The area has become ground zero for data center development due to its proximity to major population centers and extensive fiber optic infrastructure.

The approach aligns with broader initiatives established during the Trump administration that mandate major technology firms to contribute to the energy infrastructure costs associated with their AI facilities. The $4.2 billion investment earmarked for grid upgrades in Ohio alone signals the scale of capital that could flow into transmission infrastructure. Consequently, tech companies will need to price these energy expenses directly into their AI business models. For local governments facing community backlash over rising utility costs, the policy now offers a clear trade-off: approve the data center, but only if it includes dedicated power generation.