Oct 16 (Reuters) -

American Electric Power ( AEP ) said on Thursday its unit

AEP Transmission has closed a $1.6 billion loan guarantee from

the U.S. energy department to upgrade nearly 5,000 miles of

transmission lines in Indiana, Michigan, Ohio, Oklahoma and West

Virginia.

Shares of the company rose 1.2% in premarket trading.

Power consumption is expected to hit record highs in 2025

and 2026, driven by a surge in demand from data centers due to

increased adoption of artificial intelligence, according to the

U.S. Energy Information Administration (EIA).

AEP said customers have committed to business expansions

or additions that will require an additional 24 gigawatts of

electricity by the end of the decade.