Major US utility American Electric Power (AEP) has tapped Hope Utilities, a natural gas and water distribution utility, to construct a new natural gas pipeline to supply a fuel cell project that will power a data center in central Ohio.

As part of the agreement, Hope Utilities’ local subsidiary, Northeast Ohio Natural Gas Corporation (NEO), will build, operate, and maintain the pipeline and associated natural gas facilities for this project.

The pipeline and supporting infrastructure are expected to be completed and in service by October 2026. Hope provides services to more than 200,000 residential, commercial, and industrial customers across West Virginia, Ohio, North Carolina, and Indiana.

“Hope Utilities is proud to be a natural gas partner on this project with AEP, one of the nation’s largest electric providers,” Morgan O’Brien, Hope Utilities CEO, said. “Energy and power are key components for economic development and growth opportunities. Data center developers will build these facilities in locations that have the reliable and affordable energy resources they need. Hope Utilities and NEO are ready to deliver the natural gas expertise, infrastructure, and resources necessary to move these important projects forward.”

While not confirmed, the deal is most likely to serve a Bloom Energy fuel cell project. Back in November, Bloom signed a long-term contract with AEP for up to 1GW of power to supply AI data center sites across Ohio. As part of the agreement, Bloom agreed to supply an initial 100MW, with an option to expand.

Bloom develops solid oxide fuel cells (SOFCs), which are electrochemical systems that transform the chemical energy in fuels - such as hydrogen or natural gas - into electricity through a solid oxide electrolyte.

When powered by hydrogen, SOFCs produce significantly lower carbon emissions; however, so far, they have been predominantly powered by natural gas. Their high operating temperatures also make them suitable for applications like heating, cooling, and various industrial processes.

The agreement with Hope is AEP’s second in a matter of months with a natural gas provider to serve a fuel cell facility. Earlier this month, AEP struck a deal with Aspire Energy Express, the Ohio subsidiary of Chesapeake Utilities, to build and operate an $10 million intrastate natural gas pipeline to serve a fuel cell facility set to power a data center behind-the-meter. The pipeline is expected to be operational in the first half of 2027.

Fuel cells are growing in popularity as an on-site power option for the data center sector. Bloom is by far the biggest player in the market. The company made a landmark announcement last month, signing its first direct hyperscaler deal with Oracle to power an entire data center via its solution. Due to the surging demand, the company is seeking to double manufacturing capacity from 1GW to 2GW annually by the end of 2026, which would require an investment of around $100m.