Ohio communities debate data center projects and bans

On Press Pass, Paul Hugenberg, owner of Pelican 3 Consulting, discussed recent data center developments in Ohio's Mahoning Valley. In Columbiana County, a company named Zah Zaharis is proceeding with plans for a data center and power grid in Yellow Creek Township, near Wellsville. Concurrently, in Warren, two city council members have proposed a city-wide ban on data centers, an ordinance that has been pushed to a first reading for further discussion and information gathering.

Hugenberg attributed the negative attention surrounding data centers to concerns over water usage, natural resource consumption, and rising electricity prices that directly impact residents. He noted that the industry is adapting, with almost all new proposals incorporating contained water cooling systems to mitigate water concerns. Regarding electricity, Hugenberg explained that rules made in Columbus have allowed data centers to pass some costs to consumers, a legislative issue still awaiting action.

Despite the challenges, Hugenberg emphasized the massive economic investment driven by the digital landscape, comparing the rapid growth of AI-related investment to historical booms like railroads. He argued that data centers can improve communities, particularly in areas like Youngstown with existing infrastructure. He also addressed public backlash, stating that while initially justified due to new industry challenges, issues like water and electricity are being rapidly addressed. He also suggested that building on brownfield sites can minimize disruption.

The discussion also touched upon a potential statewide amendment in Ohio to ban data centers. Hugenberg warned of significant economic repercussions, citing New York's experience with a Bitcoin mining moratorium that led to $600 billion in investment leaving the state for Texas. He stressed that a similar ban in Ohio could cause substantial invested capital to leave, hindering potential economic benefits for towns.