April 30 (Reuters) - American Electric Power ( AEP )

beat first-quarter profit estimates on Tuesday, with the

Ohio-based electric utility reporting a jump in power demand

from data centers and other commercial customers.

Power consumption from AEP rate payers grew 2.9% in the

first quarter, including a higher-than-expected commercial load

growth of 10.5% from a year earlier, which helped offset the

expected decline in electricity consumption by residential

customers.

"This is a trend we expect to continue over the next several

years as the growth of AI and other technologies boost the need

for additional data storage and processing," AEP Chief Financial

Officer Charles Zebula said on an earnings call.

Through the end of the decade, AEP said it expects service

requests to range from 10 to 15 gigawatts, driven largely by the

power needs of the computer warehouses known as data centers.

The utility said it was developing new tariffs, which

include electricity rates and terms of service, specifically

aimed at assuring data centers end up needing the power they are

requesting.

Last week, both Amazon Web Services and Google, which are

among the biggest data center users, announced plans to build

large-scale computer warehouses in a part of Northern Indiana

that an AEP subsidiary delivers power to.

Meanwhile, AEP faced milder weather in the quarter, which

reduced residential power bills.

AEP, which delivers power to 5.6 million customers in 11

states, reaffirmed its 2024 operating earnings forecast range of

$5.53 to $5.73 per share.

The company reported an operating profit of $1.27 per share,

beating analysts' estimates of $1.25, according to LSEG data.

Additionally, AEP said it was taking several steps including

a "voluntary workforce reduction program, to help mitigate the

impacts of inflation and interest rates".