Lawmakers begin data center hearings
Ohio lawmakers have begun hearings for a new data center committee in Columbus, discussing the industry's impact on power costs, the environment, and the economy. Industry representatives argue data centers are efficient and committed to paying for infrastructure, while consumer advocates push for protections against ratepayers subsidizing growth. State agencies are evaluating cost allocation and monitoring environmental impacts, particularly water usage.
Ohio lawmakers launched hearings for a new data center committee in Columbus, bringing together industry stakeholders, utility regulators, and state agencies to discuss data centers' impact on power costs, the environment, and the state's economy. Dan Diorio from the Data Center Coalition spoke, emphasizing that basic cloud computing, driven by increasing internet usage and connected devices, accounts for the largest share of data center demand, not just AI. He asserted that data centers benefit local economies through job creation with minimal strain on local services, and are committed to covering all their attributed utility costs.
Lawmakers, including Ohio state Sen. Brian Chavez (R-Marrietta) and Ohio House co-chair state Rep. Adam Holmes (R-Nashport), focused on the complex issue of cost allocation. Ohio Consumers’ Counsel Maureen Willis urged the state to balance economic growth with protecting ratepayers from subsidizing data center expansion. Asim Haque from regional grid operator PJM and Public Utility Commission of Ohio Chair Jenifer French explained that Ohio regulators are evaluating creating separate customer classes for data centers to ensure they bear their share of transmission costs. However, Haque warned of a potential mismatch between data center construction speed and new power supply development, which could strain the grid and necessitate data centers using backup power during peak demand.
Environmental concerns, particularly water usage for cooling, were also addressed. Diorio claimed data centers are highly efficient water users compared to other industries. However, Mary Mertz, head of the Ohio Department of Natural Resources, noted that because Ohio data centers tie into public water systems, her agency lacks specific visibility into their direct water consumption. John Logue from the Ohio Environmental Protection Agency added that most data centers don't require wastewater permits unless they discharge directly into rivers or streams, with only one such permit issued to date.
Committee co-chair Sen. Chavez outlined four additional hearings, with plans for public comment, testimony from data center operators, local government officials, and associated companies in the coming weeks.