Ramaswamy promises free electricity near new data centers. It's not clear that's possible.

Vivek Ramaswamy, a Republican gubernatorial candidate in Ohio, has unveiled a comprehensive plan for data centers in the state, which includes a controversial proposal for new facilities to provide free electricity to nearby residents as a condition of state approval. This "behind the meter" power generation scheme, where data centers build private power plants and potentially share excess electricity, faces significant technical and regulatory hurdles, including approvals from grid operators like PJM.

Ramaswamy's plan also calls for a ban on new data centers receiving property tax abatements, suggesting instead that tax revenues be redistributed as rebates for neighboring property owners. Furthermore, he intends to issue an executive order upon taking office to pause data center construction until legislation implementing his ideas, which also emphasize building on industrial sites and adhering to environmental rules, can be passed.

This proposal comes amidst growing political backlash against data centers in Ohio due to rising electricity prices. Ramaswamy's Democratic opponent, Amy Acton, has also proposed similar measures, such as requiring data centers to fund infrastructure upgrades and adhere to environmental standards, though her plan mandates building on previously developed sites. Both candidates have avoided calling for an end to Ohio's sales tax exemption for data centers, which Governor Mike DeWine previously paused after its projected cost increased significantly.

Critics, including Acton's campaign, accuse Ramaswamy of using the plan to distract from his pro-data center record and personal investments, arguing that his policies would still allow data centers to proliferate with excessive tax breaks. The debate highlights a shift in political discourse regarding data centers, with both parties now addressing public concerns over their environmental impact and strain on the power grid.