Ohio Senate advances data center regulation bill
The Ohio Senate has advanced House Bill 646, a sweeping bill to regulate the state's data center industry. The proposed legislation addresses tax exemptions, water and energy usage, and the authority of local governments. Critics argue the bill does not go far enough.
The Ohio Senate has informally passed a heavily amended version of House Bill 646, a comprehensive bill aimed at regulating the state's data center industry. This informal passage allows lawmakers to reconsider the bill in the future. The legislation seeks to rework existing state data center regulations, specifically addressing areas such as tax exemptions, water and energy usage, and the authority granted to local governments and state agencies.
Washington County Commissioner Charlie Schilling testified before the Data Center Committee, advocating for greater control for local governments over data center developments. While his specific proposals were not included, the bill does reduce the sales tax exemption for data centers from 100% to 50%, a change Schilling views as positive for local governments. He expressed satisfaction that lawmakers appear to be responding to concerns raised by local officials.
However, critics of HB 646, including the think tank Policy Matters Ohio, argue that the bill does not go far enough. Policy Matters Ohio, which also provided committee testimony, contends that the bill leaves significant loopholes for large tax exemptions to persist for some data centers.