AEP Transmission Projects: Jacobs, WSP Picked for $37B Grid Buildout

AEP transmission projects now have two delivery partners: American Electric Power has selected Jacobs to deliver its transmission portfolio across seven eastern states and WSP USA to deliver its portfolio across four western states, as the utility plans $37 billion in transmission investment over the next five years (Jacobs; WSP via Yahoo Finance; ENR).

What Happened

Both firms announced their selections on October 29, 2026 (ENR). Jacobs, based in Dallas, will provide integrated program delivery for AEP's Eastern region in Indiana, Michigan, Ohio, Kentucky, Tennessee, West Virginia and Virginia. Its scope covers project management, project controls, engineering and design, siting, outreach, right of way and environmental services (Jacobs). Jacobs leads a team that includes ORC, GFT and RC Commonwealth, with PA Consulting, a Jacobs company, supporting innovation work, and the company said delivery is already underway and will ramp up (Jacobs).

WSP USA, a subsidiary of Montreal based WSP Global, will serve as a strategic transmission delivery partner for AEP's West region regulated transmission portfolio in Texas, Oklahoma, Arkansas and Louisiana (WSP via Yahoo Finance). ENR reports that WSP's work is expected to span planning, environmental review, permitting, engineering, program management and project delivery (ENR).

Neither firm disclosed a contract value. The $37 billion figure is AEP's planned systemwide transmission spending, not the value of the two awards (ENR).

Inside the $37 Billion Plan

ENR breaks AEP's five year transmission program into three parts (ENR):

• About $17 billion for projects driven by regional transmission organizations
• About $11 billion for system reliability
• About $9 billion for transmission serving individual customers

The transmission program sits inside a $100 billion capital plan for 2027 through 2031 that AEP unveiled one day before the delivery partners were named. Transmission is the largest share of that plan, ahead of about $36 billion for generation and about $22 billion for distribution (ENR). AEP expects its transmission rate base to grow from about $37 billion in 2026 to $69 billion in 2031, and it plans to nearly triple its 765 kV line mileage. The utility already owns about 90% of the 765 kV lines in the country (ENR).

The Load Behind the Buildout

AEP signed 15 GW of new load commitments in the third quarter of 2026 and projects 84 GW of incremental contracted load by 2031. According to AEP's investor presentation as reported by ENR, 92% of that projected load is tied to data centers, including cryptocurrency customers (ENR). We have tracked how that demand is reaching equipment makers, including Caterpillar's record third quarter backlog.

The largest single example is the Piketon Area Improvements Project in Ohio, an approximately $5 billion 765 kV build serving SB Energy's planned 10.4 GW data center campus at the former Portsmouth gaseous diffusion plant site. Three planned 765 kV lines would each add about 3.2 GW of capacity, with in service targets at the end of 2028, 2029 and 2030 (ENR). Construction is expected to begin in the first quarter of 2027. AEP has secured substantially all of the rights of way, and the customer will pay for the work over 20 years after each line enters service. The project still needs approvals from PJM, the Public Utilities Commission of Ohio and FERC, and some route segments need Ohio Power Siting Board approval (ENR).

ENR also notes that the U.S. Energy Department finalized a $1.6 billion loan guarantee, reported October 20, for AEP's reconductoring and rebuilding of 5,000 miles of high voltage lines across five states, part of a $3.56 billion program (ENR).

What the Companies Said

Jacobs Chair and CEO Bob Pragada said, "Our integrated delivery model will help AEP standardize and scale project delivery across its growing portfolio" (Jacobs). Michael Case, Power and Energy business line executive for WSP in the U.S., said the selection "reflects the strength of our integrated energy platform" (WSP via Yahoo Finance).

Implications for Owners, Developers, Contractors and Subs

• Program managers, then builders. Jacobs and WSP are delivery partners, not the line and substation builders. An AEP spokesman told ENR that contractors on the loan guarantee work will be chosen project by project, so construction packages will still flow to line, substation, civil and foundation contractors (ENR).
• Standardized delivery. A program approach usually means more consistent specifications, prequalification and reporting across many projects. Firms that can meet those requirements across several states may see steadier pipelines.
• Data center timing drives grid timing. Developers of large loads in AEP territory should expect transmission schedules, like Piketon's 2028 to 2030 targets, to shape when campuses can energize beyond initial capacity.
• Labor and materials pressure. Tripling 765 kV mileage adds demand for transformers, steel structures and specialized line crews that are already in short supply.

What to Watch

Watch for the first construction bid packages released under the Jacobs and WSP programs, regulatory decisions on the Piketon lines, and any disclosure of contract values. AEP's progress against its $69 billion rate base target will also show how quickly the plan turns into fieldwork.

Bottom Line

AEP has named Jacobs and WSP to manage delivery of a $37 billion, 11 state transmission program driven largely by data center demand. For the construction market, the larger story is the volume of line, substation and site work those programs will release over the next five years.

Key Questions

Who did AEP select to deliver its transmission projects?

American Electric Power selected Jacobs for its seven state Eastern transmission portfolio and WSP USA for its four state Western portfolio, announced October 29, 2026 (ENR).

How much is AEP spending on transmission?

AEP plans $37 billion in transmission investment over five years, including about $17 billion for RTO driven projects, $11 billion for reliability and $9 billion for customer specific transmission (ENR).

Which states are covered by the AEP transmission program?

Jacobs covers Indiana, Michigan, Ohio, Kentucky, Tennessee, West Virginia and Virginia, and WSP covers Texas, Oklahoma, Arkansas and Louisiana (Jacobs).

What are the Jacobs and WSP contracts with AEP worth?

Neither Jacobs nor WSP has disclosed the value of its AEP contract; the $37 billion figure is AEP's planned transmission spending, not the award value (ENR).

Related Coverage

• America's Energy Infrastructure Construction Pipeline: LNG Terminals, Transmission Lines, and the $1.4 Trillion Grid Buildout
• Caterpillar Q3 Results: Record $20.7B Sales, $78B Backlog on Data Center Power
• Trump Says Large Data Centers Must Make Their Own Electricity
• Jacobs-PCL Picked for $1B SFPUC Southeast Treatment Plant Upgrade

Image credit: American Electric Power. Image from the source article.

Sources

• Jacobs, Jacobs Selected to Advance American Electric Power's Transmission Modernization, https://www.jacobs.com/newsroom/press-release/jacobs-selected-advance-american-electric-powers-transmission-modernization
• WSP via Yahoo Finance (GlobeNewswire), WSP Selected as Strategic Delivery Partner for AEP, https://finance.yahoo.com/energy/articles/wsp-selected-strategic-delivery-partner-110000776.html
• ENR, AEP Taps Jacobs, WSP for $37B Power Transmission Buildout, https://www.enr.com/articles/64102-aep-taps-jacobs-wsp-for-37b-power-transmission-buildout