Ohio's data center surge faces resistance

State of play: Big Tech is full steam ahead on building as many centers as possible to generate revenue and power the AI boom.

• That growth is fueling political fights, while locals are pushing back over concerns about energy use, tax breaks and employment numbers.

Zoom in: State officials recently approved a $4.5 million tax break to land a $136 million data center expansion in Akron and Independence.

• For this incentive, the Iowa-based Ark Data Centers has promised to create 10 permanent jobs.

Friction point: The Ohio Tax Credit Authority and supporters of the incentive say it's essential for Ohio to compete with other states. The tax exemption this week reportedly secured Ark's Ohio investment over Indiana and Illinois.

• Opponents argue that data centers strain power grids and water supplies while creating measly long-term job opportunities.

The other side: At least 18 Ohio communities have enacted or considered temporary moratoriums to pause data center development, the Ohio Newsroom reports.

What we're watching: A flurry of related activity at the Statehouse.

• A group of state representatives, mostly Republicans, has proposed House Bill 646 to create a commission to study data centers' environmental and economic impacts.

• And lawmakers of both parties have proposed eliminating tax breaks for data centers.

AEP Ohio's data center tariff enacted last year continues to ignite debate.

• The bipartisan House Bill 706 would extend it to electric companies statewide, aiming to curb passing data center costs onto customers.
• The Ohio Manufacturers' Association is challenging the tariff in the Ohio Supreme Court.

Zoom out: One of the biggest emergent issues accompanying the rapid construction of data centers nationwide is fear about soaring electricity rates.

• President Trump was joined by tech CEOs on Wednesday to sign a "data center pledge" that they say will contain energy costs.