American Electric Power Partners with SoftBank to Build AI Data Center in Ohio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy AEP?
Source: seekingalpha
- Partnership Announcement: American Electric Power (AEP) has partnered with Japan's SoftBank to construct a massive AI data center on federally owned land in Ohio, representing a significant trade deal between the U.S. and Japan involving multi-billion-dollar investments in digital and energy infrastructure.
- Infrastructure Development: The project will include the construction of new 765 kV electric transmission infrastructure to support a planned 10 GW data center campus, with power expected to start flowing to the site by 2029.
- Financial Commitment: SoftBank is committed to funding $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, while Japan will contribute $33.3 billion for 9.2 GW of new natural gas generation.
- Community Engagement: AEP plans to engage with community members and landowners to gather feedback, with the Ohio Power Siting Board overseeing the permitting process for any new transmission lines.
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Analyst Views on AEP
Wall Street analysts forecast AEP stock price to fall
9 Analyst Rating
5 Buy
3 Hold
1 Sell
Moderate Buy
Current: 130.100
Low
110.00
Averages
127.78
High
140.00
Current: 130.100
Low
110.00
Averages
127.78
High
140.00
About AEP
American Electric Power Company, Inc. is an electric public utility holding company. Its electric utility operating companies provide generation, transmission and distribution services to more than five million retail customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. Its segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco and Generation & Marketing. The Vertically Integrated Utilities is engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. The Transmission and Distribution Utilities consists of the transmission and distribution of electricity for sale to retail and wholesale customers. The AEP Transmission Holdco is engaged in development, construction and operation of transmission facilities. The Generation & Marketing segment conducts Marketing, risk management and retail activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Fare Discrepancy: For instance, a flight from Newark to San Francisco has a fare of $423 in standard coach, while the top-tier Polaris class costs $5,556, highlighting the profit potential of premium seating.
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American Electric Power Partners with SoftBank to Build AI Data Center in Ohio
- Partnership Announcement: American Electric Power (AEP) has partnered with Japan's SoftBank to construct a massive AI data center on federally owned land in Ohio, representing a significant trade deal between the U.S. and Japan involving multi-billion-dollar investments in digital and energy infrastructure.
- Infrastructure Development: The project will include the construction of new 765 kV electric transmission infrastructure to support a planned 10 GW data center campus, with power expected to start flowing to the site by 2029.
- Financial Commitment: SoftBank is committed to funding $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, while Japan will contribute $33.3 billion for 9.2 GW of new natural gas generation.
- Community Engagement: AEP plans to engage with community members and landowners to gather feedback, with the Ohio Power Siting Board overseeing the permitting process for any new transmission lines.
See More
U.S. Energy Department and AEP Announce Multi-Billion Dollar Investment for Data Center Growth
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- Power Transmission Network: A new 765-kilovolt transmission infrastructure is planned to serve a 10-gigawatt data center campus at the former gaseous diffusion plant site, with power expected to flow by 2029, significantly enhancing the region's electricity supply capacity.
- Cost Control Commitment: SB Energy is committed to covering $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, ensuring a balance between economic development and resident interests.
- Community Engagement Plan: AEP Ohio is initiating preliminary transmission line route planning and plans to engage with community members and landowners for feedback, ensuring the project aligns with public interests and undergoes environmental impact assessments.
See More
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- Infrastructure Investment: The U.S. Department of Energy, SB Energy, and AEP Ohio announced plans for multi-billion-dollar investments in advanced digital and energy infrastructure to support data center growth, which is expected to drive economic development in Appalachian Ohio.
- Power Transmission Network: A new 765-kilovolt transmission infrastructure is planned to serve data center development at the former gaseous diffusion plant site in Piketon, with power expected to flow by 2029, facilitating the construction of a 10-gigawatt data center campus.
- Cost Control Commitment: SB Energy is committed to covering $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, ensuring a balance between economic development and resident interests.
- Community Engagement Plan: AEP Ohio is initiating preliminary transmission line route planning and preparing to engage with community members and landowners for feedback, ensuring that the construction of new infrastructure aligns with public interests.
See More
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide investors with valuable insights for technical analysis, helping to assess market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling “units” that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows (new units created) or outflows (old units destroyed), allowing assessment of their impact on underlying assets and overall market sentiment.
See More
Investors Turn to Low Volatility Funds Amid Market Turbulence
- Strong Performance of Low Volatility Funds: The Franklin International Low Volatility High Dividend Index ETF (LVHI) has risen approximately 8% year-to-date, contrasting with the nearly 7% decline of the S&P 500, demonstrating its resilience during market turbulence.
- Significant Asset Management: LVHI currently manages $4 billion in assets, with a 30-day SEC yield of 3.35% and an expense ratio of just 0.40%, providing a stable income source that has attracted substantial inflows.
- International Diversification Strategy: LVHI reduces volatility by investing in international stocks while hedging currency risks; Silverman notes that these stocks are driven by different economic forces than traditional domestic stocks, offering a more defensive investment option.
- Risk Mitigation Tool: Silverman recommends viewing these ETFs as conservative core holdings within a portfolio, capable of balancing higher-risk assets, akin to safety features in race cars, helping investors manage portfolio volatility.
See More
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- New Cabin Design: United Airlines has unveiled a new cabin design that reduces standard coach seating while increasing premium seating options, which is expected to enhance overall profit margins, particularly given the strong demand in the premium market.
- Fare Discrepancy: For instance, a flight from Newark to San Francisco has a fare of $423 in standard coach, while the top-tier Polaris class costs $5,556, highlighting the profit potential of premium seating.
- New Aircraft Introduction: United plans to introduce the A321neo 'Coastliner' with 20 Polaris seats, set to debut this summer, further strengthening its competitive position in the premium market.
- Market Trend: Airlines are increasingly dedicating more space to premium seating, and United's strategy aligns with this industry trend, aiming to meet the growing demand for high-end travel and drive revenue growth.
See More
American Electric Power Partners with SoftBank to Build AI Data Center in Ohio
- Partnership Announcement: American Electric Power (AEP) has partnered with Japan's SoftBank to construct a massive AI data center on federally owned land in Ohio, representing a significant trade deal between the U.S. and Japan involving multi-billion-dollar investments in digital and energy infrastructure.
- Infrastructure Development: The project will include the construction of new 765 kV electric transmission infrastructure to support a planned 10 GW data center campus, with power expected to start flowing to the site by 2029.
- Financial Commitment: SoftBank is committed to funding $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, while Japan will contribute $33.3 billion for 9.2 GW of new natural gas generation.
- Community Engagement: AEP plans to engage with community members and landowners to gather feedback, with the Ohio Power Siting Board overseeing the permitting process for any new transmission lines.
See More
U.S. Energy Department and AEP Announce Multi-Billion Dollar Investment for Data Center Growth
- Infrastructure Investment: The U.S. Department of Energy, SB Energy, and AEP Ohio announced plans for multi-billion dollar investments in advanced digital and energy infrastructure, which are expected to drive economic development and support data center growth in Appalachian Ohio.
- Power Transmission Network: A new 765-kilovolt transmission infrastructure is planned to serve a 10-gigawatt data center campus at the former gaseous diffusion plant site, with power expected to flow by 2029, significantly enhancing the region's electricity supply capacity.
- Cost Control Commitment: SB Energy is committed to covering $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, ensuring a balance between economic development and resident interests.
- Community Engagement Plan: AEP Ohio is initiating preliminary transmission line route planning and plans to engage with community members and landowners for feedback, ensuring the project aligns with public interests and undergoes environmental impact assessments.
See More
U.S. Department of Energy and AEP Announce Multi-Billion Dollar Investments to Support Data Center Growth
- Infrastructure Investment: The U.S. Department of Energy, SB Energy, and AEP Ohio announced plans for multi-billion-dollar investments in advanced digital and energy infrastructure to support data center growth, which is expected to drive economic development in Appalachian Ohio.
- Power Transmission Network: A new 765-kilovolt transmission infrastructure is planned to serve data center development at the former gaseous diffusion plant site in Piketon, with power expected to flow by 2029, facilitating the construction of a 10-gigawatt data center campus.
- Cost Control Commitment: SB Energy is committed to covering $4.2 billion in new transmission investments to prevent increases in transmission rates for Ohio residents, ensuring a balance between economic development and resident interests.
- Community Engagement Plan: AEP Ohio is initiating preliminary transmission line route planning and preparing to engage with community members and landowners for feedback, ensuring that the construction of new infrastructure aligns with public interests.
See More
