Changing the flow: Columbus Council eyes data center water costs
Columbus City Council is considering a new rate structure for high-volume utility users, including data centers, due to rising water costs and increasing demand. Residents are already facing higher water bills, and the council wants to ensure that customers with the largest demands pay their fair share. Columbus Water and Power has been tasked with recommending a new rate structure by October 26th, with the council expected to vote on the ordinance on September 28th.
Columbus City Council is scrutinizing water and power costs for major industrial users, including data centers, amidst rising utility rates for residents. Columbus water rates have already increased by 18% this year for the average family, adding an extra $10 to monthly bills.
Council members are asking if high-demand customers, such as data centers which often benefit from Columbus's infrastructure without being located directly within city limits, should bear a larger portion of the costs to maintain the utility system. Councilwoman Kristen Lindquist emphasized the need for a game plan to address disproportionately large water, sewer, or power demands. The proposed ordinance mandates Columbus Water and Power to recommend a new rate structure by October 26th, potentially including higher charges for peak usage or fees based on required infrastructure capacity.
During public testimony, various stakeholders agreed that developers should contribute more to infrastructure costs. The proposal targets not only data centers but also other large industrial users like chip manufacturers, breweries, and food processing facilities. The council also seeks to understand how a new rate structure could generate revenue to offset future increases for residential and small business customers. The council is scheduled to vote on the ordinance on September 28th, which, if passed, would initiate the process for new rate recommendations.