AI data center boom targets Midwest

The Midwest, particularly the Mahoning Valley in Ohio and the Great Lakes region, is emerging as a prime location for new AI data centers due to its open land and freshwater resources. Proposals for data centers are emerging in places like Niles, Ohio, and Sharon, Pennsylvania, with a large Microsoft data center also under development in Mount Pleasant, Wisconsin. However, this growth is met with significant environmental and utility concerns. Clean Wisconsin's analysis of a large data center in their state projected it could use as much water as 970,000 people, even with closed-loop cooling systems, highlighting a general lack of transparency regarding water usage. Electricity demand is also a major worry; the Wisconsin Microsoft project alone requires 450 megawatts, enough for 300,000 homes. The Ohio Business Roundtable estimates the state's energy demand will surge by nearly 50% by 2034, largely due to data centers, contributing to a 12% rise in electricity rates over the past year. Local opposition is mounting, with residents like Melissa Wade and Margie Johnson in Hubbard, Ohio, proposing an ordinance to prohibit AI data centers within city limits, citing worries over land use, utility strain, and corporate tax breaks. On a state level, the Ohio House and Senate are addressing these issues through legislation, including House Bill 15 and the proposed Senate Bill 2 (sponsored by Senators Shane Wilin and Bill Reincki). These bills aim to reduce taxes on new projects, streamline the Public Utilities Commission of Ohio (PUCO) permitting process to 45 days, eliminate certain consumer fees, and mandate PUCO review of utility rate increases every three years. Additionally, efforts are underway in Ohio to gather signatures for a proposed constitutional amendment that would ban data centers larger than 25 megawatts, and the Ohio House has approved the creation of a data center study commission, now awaiting Senate approval.