Google is building a $500 million data center in rural Ohio. Neighbors are furious
Google is constructing a $500 million data center in American Township, Ohio, despite strong local opposition. Residents are concerned about construction impacts, air emissions, water use, and tax incentives, with many feeling powerless to stop the ongoing project. State-level legislative efforts to regulate data centers and reduce their tax breaks, led by Ohio House Speaker Matt Huffman, have stalled.
Google's $500 million data center project in American Township, Ohio, is facing significant backlash from local residents who cite concerns over secrecy, construction disruptions, and substantial tax incentives. Located on 373 acres of former farmland in Allen County, the project has proceeded despite community outrage over issues like constant noise, reports of private water wells drying up, and potential air emissions from the facility's operations. Residents express frustration at a perceived power imbalance, believing their efforts to block the ongoing construction by one of the world's most powerful companies are largely fruitless.
Opposition has manifested through public hearings and numerous written comments, with locals urging the Ohio Environmental Protection Agency (EPA) to reject an air permit for the data center's 115 gas-fired backup generators. Despite widespread public objection, the Ohio EPA granted the air permit in late May, allowing the emission of hundreds of tons of nitrogen oxides and carbon dioxide annually. Concerns about construction dust causing health issues have also been reported by residents, prompting the Ohio EPA to ask the company to implement control measures.
The project benefited from a veil of secrecy, with Google initially using a shell company, Bistrozzi LLC, and signing non-disclosure agreements with county commissioners. The data center is exempt from state and local sales taxes until 2058, an incentive estimated to save Google at least $600 million. Additionally, Allen County established a "community reinvestment area," granting a 75% property tax abatement for 15 years. The City of Lima also committed to selling 5-10 million gallons of water per day to the facility for two decades.
Ohio House Speaker Matt Huffman, a Lima Republican residing near the site, has championed legislative efforts to impose new regulations on data centers statewide, including banning NDAs with public officials and reducing tax exemptions. However, his attempts to pass a bill that would halve sales and property tax incentives and mandate data centers to secure their own electricity and adhere to water conservation practices were ultimately stalled in the House, with a final vote being nixed in June. While advocating for these statewide changes, Huffman has avoided direct involvement in the local controversy surrounding Google's American Township project.