American Electric Power (AEP) has selected Jacobs and WSP USA to deliver a $37 billion transmission investment program across 11 states. The work sits inside AEP's new $100 billion capital plan for 2027 through 2031, in which transmission is the largest piece. Generation is allocated more than $36 billion and distribution $22 billion. AEP expects its transmission rate base to nearly double to $69 billion by 2031.
Who leads which region
Jacobs is lead program manager for AEP's eastern territory, which covers seven states. Work there is already underway and spans engineering design, project controls, environmental compliance, right-of-way acquisition and public outreach. Jacobs is running an integrated team with subconsultants ORC, GFT and RC Commonwealth. Jacobs Chair and CEO Bob Pragada said the delivery model will help AEP standardize and scale project delivery.
WSP USA leads delivery in the four western states. Its scope covers regional system planning, environmental permitting, engineering and program management.
Where the money goes
Of the $37 billion, $17 billion is for projects driven by Regional Transmission Organizations, $11 billion is for grid reliability and asset modernization, and $9 billion is for infrastructure that connects customers.
AEP signed 15 GW of new customer load commitments in the third quarter alone, bringing its projected incremental contracted demand to 84 GW by 2031. According to AEP's investor presentation, 92% of that demand comes from data centers and other high-density compute facilities, including cryptocurrency operations. AEP plans to nearly triple the mileage of its 765-kV network and already owns about 90% of the existing U.S. infrastructure at that voltage.
The Piketon project
The anchor project is a $5 billion, 765-kV buildout in southern Ohio to serve SB Energy's planned 10.4-GW data center campus at the former Portsmouth Gaseous Diffusion Plant site in Piketon. Three 765-kV lines, each adding about 3.2 GW of capacity, will connect the site with AEP substations near Cheshire and Hanging Rock. In-service dates run from late 2028 through 2030.
AEP finalized commercial contracts in the third quarter, and field construction is slated to begin in the first quarter of 2027. Existing infrastructure will serve the initial 800 MW of load. Under a 20-year Electric Service Agreement, the customer will pay the project costs directly over the two decades after commissioning.
AEP has secured substantially all needed right-of-way options and is advancing filings with PJM Interconnection, the Public Utilities Commission of Ohio and the Federal Energy Regulatory Commission.
Separately, the Department of Energy finalized a $1.6 billion loan guarantee backing a $3.56 billion AEP reliability program to rebuild and reconduct 5,000 miles of high-voltage lines across five states. Subcontracting and procurement for individual construction packages will be awarded project by project.
