How Chillicothe’s paper mill could become a data center
Chillicothe City Council initially passed a data center moratorium due to a proposal to convert the Pixelle paper mill into a tech hub, including a data center, by U.S. Paper Mill Company (USPM). The council later overturned the moratorium, citing economic opportunity. The data center project faces significant opposition from residents, with a petition garnering over 3,600 signatures.
The former Pixelle paper mill in Chillicothe, Ohio, is slated for a transformation into a technological hub that includes a data center, a pivot by U.S. Paper Mill Company (USPM) after anticipated federal contracts for nitrile glove manufacturing failed to materialize. Chillicothe City Councilman Richard McQuirt expressed that the data center emerged as a solution to prevent further economic hardship and job losses following the mill's initial closure and USPM's financial struggles, which he attributed to stalled federal contracts.
Initially, the Chillicothe City Council enacted a data center moratorium on August 24, temporarily suspending approvals for such developments. However, the council reversed this decision on Monday night. Bob Stanley, USPM plant controller, praised the vote as a crucial step toward economic revitalization and job creation for the city, supporting current and future workers.
Senator Bernie Moreno has been actively involved in promoting domestic manufacturing of medical supplies, introducing the American Glove Act of 2026 to ensure U.S.-made nitrile gloves. McQuirt indicated discussions with Moreno's team about the delays in federal contracts, which USPM owner John Todoroki attributed to cheaper manufacturing costs in China and Malaysia. The White House has not responded to inquiries regarding these contract issues.
The proposed data center project, however, faces considerable local opposition, evidenced by a petition with over 3,600 signatories. Aligned Engine leaders, who are pitching the data center, presented details to a community meeting, emphasizing its limited noise pollution, use of private utilities, and projected creation of 240 permanent jobs on a 6.5-acre portion of the 400-acre USPM campus, while stating they are not seeking tax abatements.