Springfield's $1.3B data center brings economic hope — and environmental skepticism
5C Group's $1.3 billion data center in Springfield, Ohio, is nearing completion of its first phase but faces environmental concerns from residents. Locals cite worries about energy use, diesel generators, and noise, leading to efforts to amend the city charter and a statewide ban on hyperscale data centers. The city commission has enacted a temporary six-month moratorium on new hyperscale data centers due to community resistance.
5C Group's $1.3 billion data center in Springfield, Ohio, is progressing with its first phase expected to be 25 megawatts operational by the end of September. The Canada-based AI infrastructure company is retrofitting a former LexisNexis facility at Prime Ohio Corporate Park, expanding it to 214,000 square feet and promising 120 new jobs in Clark County.
Despite economic hopes from company executives, including CEO Jonathan Ahdoot, and city officials like economic development manager Kassie Scott, the project faces significant local opposition. Residents Nicole Bethel and Melissa Rexroth are collecting signatures for a November ballot initiative to prohibit hyperscale data centers in Springfield and a broader statewide ban via the Conserve Ohio campaign. Their concerns, brought to Springfield city commission meetings, focus on environmental impacts such as energy consumption, diesel generator emissions, potential strain on the regional electric grid (PJM Interconnection), and noise.
In response to resident concerns, the Springfield city commission approved a temporary six-month moratorium on new hyperscale data centers last month. 5C Group maintains a "sustainable-first approach," with plans to construct an on-site water reservoir and explore on-site energy generation to mitigate impacts. Ahdoot states the project will not burden residential electricity bills, a point disputed by PJM Interconnection, which links rising energy demand to data centers and suggests developers secure their own power.
Springfield has published an FAQ page regarding the 5C data center, and the company hopes to hold town halls to address community concerns. The project, which includes tenants Vultr and Crusoe Energy Systems (parent company The Constant Company), aims to provide 40 additional jobs from these tenants and is seen by city leaders as crucial for diversifying Springfield's labor market amidst other job losses.