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Chanan Zevin | Chief Editor and Head of Desks

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Morning Edition · Wed 14 Oct 2026

AEP Orders Up to 1.6 GW of Mainspring Generators in Deal Worth Over $4 Billion to Power AI

American Electric Power agreed to buy up to 1.6 gigawatts of small generators from Mainspring Energy to supply power-hungry customers such as data centers.

Chanan Zevin - Chief Editor and Head of Desks

Published

AI illustration: Rows of servers in a data center
Photo: BalticServers.com / Wikimedia Commons, CC BY-SA 3.0

The deal

AEP will take an initial 190 megawatts in 2027, with an option for 200 megawatts a year through 2034, Bloomberg reported. Mainspring values the agreement at more than $4 billion.

Why it matters

Utilities are turning to on-site generation because grid connections for new data centers can take years. What to watch: whether other utilities sign similar orders, and how regulators treat the cost of these units in customer rates.

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