Ohio lawmakers unveil data center regulations
Ohio lawmakers have unveiled a 50-page bill aiming to regulate data center development in the state, addressing concerns about electricity rates, water usage, and sales tax breaks. The legislation seeks to ensure data centers pay for their energy costs and implement water conservation measures, though existing contracts with companies like Google and Amazon are exempt from some provisions. This bill marks the first step in ongoing legislative efforts to manage data center growth in Ohio.
Ohio lawmakers in Columbus have unveiled a new 50-page bill aimed at regulating the state's growing data center development, following weeks of contentious hearings and public feedback. Senate Energy Chair Brian Chavez stated that the legislation seeks to address concerns about the industry's impact on Ohioans. Key provisions include creating a specific electric rate class for data centers to ensure they cover their power costs, thereby protecting ratepayers. The bill also limits new sales tax breaks for data center projects, offering more incentives for those on brownfields and those that empower themselves.
However, these changes will not apply to existing state contracts with major companies like Google and Amazon, deals which Euclid Democrat Ken Smith noted can span decades and affect a large portion of the market. The legislation further mandates data centers to implement closed-loop water systems or adhere to best practices for water conservation and efficiency. A notable omission in the bill, as highlighted by a reporter, is the lack of provisions regarding transparency and non-disclosure agreements (NDAs) that public officials are asked to sign. While acknowledging the need for timely disclosures, lawmakers expressed concern about inhibiting development by prohibiting NDAs.
Governor DeWine reiterated the economic advantages of attracting data centers to Ohio, stating that communities should demand benefits from developers, such as water recycling. This bill is considered an initial step, with more legislation anticipated in the fall.