By MATTHEW DALY, Associated Press

WASHINGTON (AP) — The Department of Energy said Thursday it has finalized a $1.6 billion loan guarantee to a subsidiary of one of the nation’s largest power companies to upgrade nearly 5,000 miles of transmission lines across five states, mostly in the Midwest, for largely fossil fuel-run energy.

AEP Transmission will upgrade power lines in Indiana, Michigan, Ohio, Oklahoma and West Virginia to enhance enhance grid reliability and capacity, the Energy Department said. The project is meant to help meet surging electricity demand from data centers and artificial intelligence.

Ohio-based American Electric Power, which owns AEP Transmission, is one of the nation’s largest utilities, serving 5.6 million customers in 11 states. It primarily produces electrici

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