New filing establishes an accelerated study framework for nearly 10 gigawatts of additional data center demand, identifies major transmission infrastructure and puts Ohio regulators on a deadline to address project costs.
PIKETON, Ohio — PJM Interconnection has submitted a new agreement to federal regulators establishing a specialized review process for the massive artificial intelligence infrastructure expansion at the former Portsmouth Gaseous Diffusion Plant, detailing how the project’s power generation, transmission infrastructure and electrical demands will be evaluated before additional construction can move forward.
The filing, submitted Tuesday, Oct. 13, to the Federal Energy Regulatory Commission under Docket No. ER27-126-000, marks a significant regulatory step for the PORTS-Pike Technology Campus being developed by SoftBank Group affiliate SB Energy.
Unlike conventional generation interconnection reviews, the agreement establishes a coordinated process allowing PJM to evaluate the proposed data center expansion, associated power generation and transmission facilities as a single integrated project.
The agreement was executed Sept. 25 by PJM, AEP Ohio Transmission Company and three SB Energy affiliates: SE DC DevCo LLC, PORTS 2 Interconnect LLC and Portsmouth Gas DevCo LLC.
PJM is asking federal regulators to accept the agreement retroactively to its execution date.
A different approach to connecting the project
The most significant development in the filing is the proposed treatment of the project’s massive electrical requirements.
The agreement covers approximately 9,570 megawatts of additional data center demand and approximately 10,170 megawatts of gross new generation, beyond an initial 800-megawatt phase already addressed through AEP Ohio’s data center tariff.
Combined, the two data center phases would represent approximately 10,370 megawatts of demand.
Instead of evaluating the generation through PJM’s conventional interconnection queue, the agreement establishes a project-specific process under Ohio’s State Agreement Approach, which allows states to request transmission planning that supports public policy objectives.
PJM told federal regulators that the arrangement is intended to evaluate the project’s interconnected components together rather than separately.
The filing emphasizes that the modified study process does not exempt the development from existing electrical reliability standards.
PJM will still apply applicable North American Electric Reliability Corp. requirements, regional transmission planning criteria, and transmission-owner standards.
The distinction is significant because the project would receive a tailored planning review while remaining subject to the substantive engineering requirements imposed on other developments.
New transmission infrastructure detailed
The agreement provides additional technical details about the electrical infrastructure being studied.
According to Schedule B, the proposed expansion includes a new 765-kilovolt substation, three new 765-kilovolt transmission lines and four devices known as static synchronous compensators, which help regulate voltage and stabilize electrical systems.
A separate transmission component identified as AEP supplemental project s3864.1-6 includes four new 345-kilovolt transmission lines, another substation and additional voltage-control equipment.
PJM will determine whether the infrastructure identified by AEP is sufficient to accommodate the full project or whether additional transmission facilities will be required.
The filing also identifies proposed generating resources near the Portsmouth site and at another location approximately 30 miles away.
Those generation resources are intended to support the data center’s demand while obtaining capacity interconnection rights that could allow them to participate in PJM’s broader capacity market.
The filing does not constitute authorization to construct those facilities.
Who pays? Ohio regulators will have a major role
The agreement also places the question of financial responsibility squarely before Ohio regulators.
Under the proposed arrangement, SB Energy has committed to funding the necessary transmission facilities and upgrades through mechanisms intended to protect existing electricity customers from costs attributable to the data center.
However, the filing explains that the State Agreement Approach initially assigns transmission project costs to the sponsoring state, with Ohio intending to allocate those expenses to the developer.
The precise cost-allocation and recovery mechanisms still require additional regulatory proceedings before the Public Utilities Commission of Ohio and FERC.
A June 15 request submitted by Ohio’s Federal Energy Advocate specifically sought to have the transmission infrastructure costs assigned to Ohio and subsequently allocated to SB Energy.
The new agreement outlines a consequential deadline.
Within 120 days after PJM delivers its final System Upgrade Report, the PUCO must either enter into the required State Agreement Approach arrangement or issue an order establishing Ohio customers’ responsibility for the identified transmission costs, unless the parties agree to an extension.
If neither action occurs and no extension is granted, the study agreement provides for termination.
Although the developer has committed to paying for the infrastructure, the regulatory process determining how that obligation will be implemented remains unfinished.
The filing also makes clear that federal acceptance of the study agreement would not itself approve the transmission facilities or establish final cost allocations.
Developer responsible for study expenses
The filing requires SE DC DevCo to pay an initial $500,000 deposit for PJM’s engineering studies.
An additional $500,000 deposit would be required if the developer submits revised project specifications that trigger a new study.
Those payments are not a ceiling on expenses. The developer must reimburse PJM for all actual study costs, including work performed by outside contractors.
PJM also reserves the right to hire third-party engineering firms and consultants to complete the work without diverting personnel from its existing transmission planning and interconnection responsibilities.
Engineering review could take months
The agreement establishes a defined sequence of technical reviews intended to identify whether the project could create reliability problems on the regional transmission network.
Following preliminary data reviews, PJM anticipates completing load-flow and short-circuit studies within 60 days and a more extensive grid stability analysis within 120 days.
Those studies will evaluate the system under stressed operating conditions, including circumstances in which the proposed generation resources are not fully available.
PJM will then issue a Reliability Report identifying any violations and assessing how much of the resulting impact is attributable to the proposed data center demand and generating facilities.
The developer will have 30 days to decide whether to proceed, revise the project or terminate the agreement.
If the project advances, PJM will identify the transmission upgrades required to resolve any reliability violations and prepare a separate System Upgrade Report.
The schedule allows for extensions and additional studies depending on the findings.
OpenAI identified as data center tenant
The filing also formally identifies OpenAI as the data center tenant and documents previously announced community investment commitments.
According to PJM’s submission, SB Energy has committed $40 million for community benefits, with OpenAI committing another $40 million.
The combined $80 million is intended to support energy affordability, workforce development, community priorities, and economic development.
SB Energy has also committed to funding accelerated cleanup and remediation at the former federal uranium enrichment complex, according to the filing.
Those commitments are described in the federal submission but are separate from the engineering studies and regulatory approvals currently under consideration.
What happens next
The immediate question before FERC is whether to accept the study agreement, designated Rate Schedule No. 54.
Acceptance would establish the framework for PJM’s technical evaluation, but it would not authorize the entire project, approve construction of new transmission lines or settle how infrastructure costs ultimately will be recovered.
Those decisions will require further action by PJM, Ohio regulators and federal authorities.
The filing represents an important transition from the project’s announced development plans to detailed regulatory review of the electrical infrastructure needed to support its expansion.
For Pike County, the next major documents will be PJM’s reliability findings and its determination of what additional transmission upgrades, if any, are needed to accommodate the project.
For Ohio electricity customers, the unresolved question is how regulators will structure the developer’s financial obligations while ensuring the costs of serving the massive new industrial load are not shifted to existing ratepayers.
The filing is available through the Federal Energy Regulatory Commission under Docket No. ER27-126-000, filed Oct. 13, 2026.
