Ohio's data center debate goes beyond jobs
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Data centers were a controversial subject during election season, but some communities still want them despite concerns about their energy needs and job creation figures.
Why it matters: There's more to the economic equation than jobs, as communities weigh added tax revenue against the costs of hosting the facilities.
Driving the news: A study led by Miami University finance professor Simon Buechler suggests data centers create few direct jobs but can affect other industries.
- Counties with new data centers gained 1,000 to 1,300 jobs within three to five years compared with similar counties without them.
- Most gains were in transportation, warehousing, electrical work and security, with little boost for nearby businesses like restaurants and shops.
By the numbers: A recent Cincinnati Regional Chamber report estimates a hypothetical 250-megawatt data center in the region could support 3,203 jobs and bring in $7.8 million in local taxes.
- The estimate includes jobs at the facility, its suppliers, and businesses supported by workers' spending. It doesn't include construction jobs.
- The trade-off: The data center could use as much electricity as 21 average Ohio industrial users and 68 million gallons of water annually.
Closer to home, Greater Cincinnati has 17 operating data centers, with two massive facilities planned in Butler County, per the chamber.
- Lebanon Mayor Mark Messer tells Axios that CyrusOne paid his city $1.5 million in property taxes in 2025. That includes nearly $1 million to schools, plus $377,000 in electricity taxes to the city's general fund.
- Lebanon offered no tax incentives and made CyrusOne cover its electric infrastructure costs, Messer says, though he admits job creation remains a weak spot.
What they're saying: Warren County Commissioner Dave Young says the U.S. needs to lead in AI development, but local governments should control where data centers go.
- The county enacted a six-month moratorium in September to study large data centers.
- Some communities with few economic opportunities will "bend over backwards" to attract them, Young says, but he believes Warren County already has plenty of development and "the juice isn't worth the squeeze."
Chamber CEO Brendon Cull tells Axios communities should negotiate benefits beyond jobs, such as funding for parks or community centers. He says those agreements should also include measures to hold developers accountable for their promises.
- Lebanon is working on a community benefit agreement with CyrusOne, Messer says.
The bottom line: "The benefits [of these centers] are spread to anyone, even in the world, who can access those models," Buechler says, "whereas the costs are very, very local."