Ohio candidates seeking to regulate data centers both invest in them
Both leading candidates for Ohio governor are advocating for a pause or regulation of data center expansion in the state, despite having significant personal investments in data center-related companies. This has led to criticism from activists and a state representative regarding potential conflicts of interest and the impact on utility bills, air, and water infrastructure for Ohioans. Candidates have proposed various conditions for data center development, including paying community electric bills.
Both Republican candidate Vivek Ramaswamy and Democratic candidate Dr. Amy Acton, the frontrunners for Ohio governor, have publicly expressed a desire to pause or conditionally regulate the rapid expansion of data centers across the state. However, a report reveals that both candidates hold substantial personal investments in companies involved in the data center industry, prompting accusations of a conflict of interest.
State Rep. Tristan Rader (D-Lakewood) and progressive organization Innovation Ohio highlighted Ramaswamy's extensive portfolio, which includes holdings in NVIDIA, Microsoft, and Amazon—companies that are major players in data center development and cloud operations in Ohio. Similarly, Dr. Acton's financial report shows investments in Microsoft and Iron Mountain, which operates a data center near Dayton, Ohio.
Activists and local officials, including Rep. Rader, rallied in Cleveland, expressing concerns that the data center boom leads to higher utility bills, environmental pollution, and strain on water infrastructure for average Ohioans. Ramaswamy's platform, announced in August, proposes prohibiting new data centers until companies pay for the electricity they consume in the communities where they operate. Dr. Acton's campaign, while seeking a conditional moratorium, stated that she would divest from individual stocks if elected governor.
The controversy underscores the growing political debate in Ohio regarding the economic benefits versus the environmental and infrastructural costs of the booming data center sector, particularly when key political figures have personal financial ties to the industry they aim to regulate.