Ohio data center debate heats up
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Data centers like this one near Worthington are facing more backlash over energy use, tax breaks and transparency. Photo: Eli Hiller/For The Washington Post via Getty Images
Data center discourse is reaching a crescendo in Ohio, with public opposition mounting and Gov. Mike DeWine pausing state sales tax breaks.
Why it matters: Central Ohio has been one of the country's hottest spots for data center development, but shifts in perception and policy could change that.
Catch up quick: A committee of state lawmakers kicked off a series of meetings last week to study and potentially introduce legislation on the matter.
- Speakers representing the industry, state agencies and utility regulators "sought to downplay and displace concerns," per the Ohio Capital Journal.
- The general public then testified Monday, with dozens voicing opposition for over four hours.
Friction point: The meetings coincide with the steep final stretch of Conserve Ohio's effort to put a large-scale data center ban to a statewide vote in November.
- "Everybody's worried," even if for different reasons — from electric and water consumption to centers abutting rural properties and a lack of transparency on decision making, petitioner Jessica Baker tells Axios.
- "There are no party lines," she says.
Flashback: DeWine pausing state sales tax breaks last Wednesday was unexpected, as he previously vetoed lawmakers' attempt to eliminate them last year.
- The program cost Ohio $1.6 billion last year, eleven times more than original estimates, Signal Ohio reports.
- Baker called the move "a little late" and "not enough."
The other side: Ohio's current landscape of "uncertainty and unpredictability" could put it at a "competitive disadvantage" for future projects, Data Center Coalition vice president of state policy Dan Diorio tells Axios.
- Currently 37 other states offer tax incentives.
- As our lives grow increasingly digital, all that data needs to go somewhere.
The big picture: Lawmakers in some states are considering temporarily banning data centers altogether amid their rapid growth and rising public backlash.
What's next: Ohio's new committee is operating under an ambitious timeline, suggesting it will offer legislation of some type this month, Signal also reports. The next meeting is Thursday.
Meanwhile, Conserve Ohio must collect over 420,000 signatures by July 1 to qualify for the November ballot.
- Even if it misses that deadline, the group will continue petitioning for a future election, Baker says.