Lack of Data Center Regulation Could Cost Ohioans Billions
A Scioto Analysis study estimates that unchecked data center growth could raise Ohio electricity customers' costs by $16 billion between 2027 and 2034 and cause $41 billion in air pollution damage. State Rep. Tristan Rader is working on legislation to reconsider data center tax exemptions and establish safeguards for existing utility customers, while the Goldwater Institute disputes the severity of the threat.
A new analysis from Columbus-based Scioto Analysis estimates that Ohioans could face $16 billion in additional electricity costs from data center growth between 2027 and 2034, along with $41 billion in air pollution damage. The study also estimates that Ohio's data center sales and use tax exemption reduced state revenue by $1.6 billion in 2025.
State Rep. Tristan Rader, D-Lakewood, criticized the Ohio Statehouse for failing to address the projected costs and said he is working on legislation to reconsider tax exemptions and create long-term financial safeguards for existing utility customers. The Goldwater Institute offered a different assessment, arguing that electricity market policies that conceal scarcity are the greater problem and that higher prices could encourage efficiency.