Originally, the AES was called "Federation Sim Group (FSG)". It was started on AOL by an individual going by the AOL screen name of AdmGMad. He recruited a fellow by the name of Hank Chandless (aka Grand Admiral Picard of FSG). However, AdmGMad promptly quit several days later. Hank decided to make a go of it, and that was when (according to some) the FSG was "officially" started, in January of 1994.

For quite a while, all of the sims in FSG were though they were all live chat room simulations run on AOL and later on Internet Relay Chat (IRC) channels. In mid-July 1995, the very first Play-by-E-mail (PBeM) sim to join FSG was Outpost 77, founded by Derrik Lang. Outpost 77 quickly became a huge success, and it was soon realized that other PBeM sims could be supported by FSG members looking for a sim other than the existing one day a week for an hour Chat Room and IRC sims, and including Siencia Colony, Earth Orbital Station 2, Utopia Planitia Fleet Yards, and the U.S.S. Galaxy soon followed. Derrik was soon placed in charge of the PBeM aspect of the FSG, which had grown to 9 sims.

In may 1997, Derrik had to step down due to Real Life job constraints, and his position was given to Dennis Busse, who was GM of the Enterprise-E sim.

Then on August 18th 1997, Hank retired, putting the sim group into chaos and closing down the electronic mailing lists that the E-mail Division was using at the time. After much debate, the entire E-Mail Division (then 19 sims) decided to leave FSG as a unit and form a new group of their own.

On August 20th 1997 Allied E-mail Simulations, or AES, was born. It was managed by Dennis Busse, who at the time was already acting as the defacto E-Mail Division manager and was doing an excellent job, in a position known as "Chief of Operations".

This marked the start of a record-breaking 2 months of active expansion of the division, with the Fleet Admiral adding 3 sims before he left, and the newly promoted Admiral Farrell adding a total of 10 more sims over the next 3 months, bringing the division to an amazing 19 sims with over 300 members. These sims alone comprised a full third of FSG's available sims.

Within a month or two after AES was founded, Dennis began asserting control over the group, changing the name from Allied Email Simulations to Allied Electronic Simulations in preparation to add IRC chat sims to the lineup. Some IRC chat sims were added to the lineup. Unfortunately all of them failed within three months or less from lack of participation.

On June 24th 1998, the GMs of AES voted in a new constitution to abolish the hierarchical COO management structure of the group and to allow all of the GMs and AGMs to have a say and contribute in the day to day operations of AES if they so choose to volunteer their time and talents. AES flourished under the new system.

The AES has had many ups and downs, most noticably going on an extended hiatus period in 2004 due to website difficulties. But the AES would not got down without a fight, and returned in late 2004 in the hopes of continuing the tradition of offering outstanding sims to the 'Net.