How a $1 billion data center fell apart in Ohio
A $1 billion data center project in Hamilton, Ohio, fell apart after the developer, Wharton Equity Partners, sought to quadruple the facility's power capacity to over 200 megawatts. City power system studies revealed the municipal utility could not reliably support the increased demand without significant upgrades and risks, leading the developer to terminate the agreement. Although public opposition was present, the project's failure was primarily due to these infrastructure limitations.
Hamilton, Ohio, a city of 65,000 residents in Butler County, actively pursued a $1 billion data center project within its designated "innovation district." The city, which manages its own electric utility, initially secured an agreement with Cincinnati-based developer Logistix in July 2024 for a project slated for 40-80 megawatts of power.
However, public concerns arose regarding noise, electricity, and water usage, though city officials worked to address these. In July 2025, New York City-based investment firm Wharton Equity Partners, through its subsidiary Wharton Digital, acquired the project from Logistix. Driven by the artificial intelligence boom, Wharton aimed to substantially increase the data center's capacity to over 200 megawatts. Subsequent power system studies conducted in December 2025 and January 2026 concluded that Hamilton's existing electrical infrastructure could not reliably support the expanded load, and modifications would incur over $29.7 million in costs and heighten outage risks.
City Manager Craig Bucheit informed the Hamilton City Council in January 2026 that delivering even 45 megawatts would take at least 24 months, far short of the developer's request. Following these findings, Wharton Equity Partners paused further studies and ultimately terminated its development agreement with the city in May 2026. While Logistix President Douglas Swain suggested the site could still host a smaller data center, the 29-acre city-owned parcel currently has no active projects.