Financial troubles have forced Intel to delay building and equipping its site in Ohio on multiple occasions, and now that the timeline has slipped to 2031, it is beginning to impact Intel's partners. NBC4i reports that the company now expects to start making chips at its Ohio fab in 2031, which leaves American Electric Power (AEP) Ohio with an idle power substation that cannot start operations without Intel.
Intel's decision to delay the launch of its Ohio semiconductor facility, once called Silicon Heartland, to 2031 has left AEP Ohio with completed but idle power infrastructure that costs $95 million. The utility company built a major substation specifically to meet Intel's expected power needs, but now it must wait years before it can start generating a return on its investment.
Back in September 2024, the Public Utilities Commission of Ohio (PUCO) approved a financial arrangement between Intel and AEP Ohio. Under that deal, AEP would invest in building a new 500-megawatt substation, which Intel would begin using once the first fab (Mod 1) at its Ohio site comes online. In 2024, Intel expected this to happen in 2027 – 2028, which was already a delay from the originally expected 2025 kick-off. However, in early 2025, Intel shifted the completion of the first fab to 2030, with production to start at the Silicon Heartland Mod 1 in 2030-2031.
The substation, known as Green Chapel Station, was designed to meet Intel's massive power demand and is scheduled to be operational by August 2025. The infrastructure is capable of supporting the electricity needs of up to half a million homes, but it will stand idle until Intel's site becomes operational. Under the 2024 agreement, Intel was set to receive electricity at a reduced rate for 20 years, while other users of the substation would be billed separately. As a consequence, Intel and its supplier need to revise their deal.
On June 5, 2025, Intel and AEP submitted a request to PUCO to amend their existing agreement, just four days after AEP Ohio announced an increase in customer rates. Despite the overlap in timing, AEP stated that the new rates had nothing to do with the Intel-related deal, emphasizing that the changes were caused by power supply and demand dynamics across its 13-state energy grid.
Once the fabrication plant is active, Intel's electricity costs will be partially offset through small charges on residential bills under a program called the Distribution Investment Rider. This mechanism already appears on customer bills for other infrastructure projects, typically adding $2 to $3 per month. AEP explained that none of the Intel-related costs will appear on bills until the facility actually begins drawing power.
AEP Ohio noted that the construction of Green Chapel Station was aligned with Intel's original project schedule, which aimed to start making chips in Ohio between 2027 and 2028. Despite being ready on time, the equipment cannot be placed into service without Intel, which prevents AEP from recovering its costs.
As part of the revised arrangement, AEP is seeking continued cost coverage to bridge the gap created by Intel's delay. Meanwhile, Intel has agreed to absorb any additional expenses if the project ultimately exceeds the original plan, which will protect AEP from financial loss caused by the Silicon Heartland delay.
Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
