Study: Lack of data center regulation could cost Ohioans billions
A Scioto Analysis study warns that unregulated data center growth in Ohio could increase electricity costs by $16 billion from 2027 to 2034 and cause $41 billion in air pollution damage. State Rep. Tristan Rader is working on legislation to reconsider data center tax exemptions and establish financial safeguards for electricity customers, while the Goldwater Institute disputes the scale of the threat.
A new analysis from Columbus-based Scioto Analysis estimates that Ohio data center growth could add $16 billion to customers' electricity costs between 2027 and 2034 and create $41 billion in air pollution damage. The study also estimates that the state's data center sales and use tax exemption reduced revenue by $1.6 billion in 2025.
State Rep. Tristan Rader, D-Lakewood, criticized Ohio lawmakers for providing tax incentives to data center developers and said he is working on legislation to reconsider those exemptions and protect existing utility customers. The Goldwater Institute offered a contrasting assessment, arguing that electricity-system pricing and the concealment of scarcity are the larger problems and that higher prices could encourage efficiency.