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, primarily to enhance enhance grid reliability and capacity, the Energy Department said. The project by AEP Transmission, a subsidiary of Ohio-based American Electric Power, is meant to help meet surging electricity demand from data centers and artificial intelligence.

AEP primarily produces electricity from coal, natural gas and nuclear power, along with renewable resources such as wind and hydroele

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