Ohio could soon tighten rules on new and existing data centers as projects expand
Ohio is considering House Bill 983, the Data Center Accountability and Citizen Protection Act, which aims to tighten regulations on new and existing data centers across the state. The proposed bill would require local citizen votes for future projects, set environmental and water usage standards, mandate data centers supply their own electricity, and end tax abatements. The Data Center Coalition opposes the bill, arguing it would harm Ohio's economy, while State Representative Jennifer Gross champions it to protect citizens and resources.
Ohio is currently debating House Bill 983, titled the Data Center Accountability and Citizen Protection Act, which seeks to implement more stringent regulations on data center development and operation statewide. Introduced by State Representative Jennifer Gross, a West Chester Republican, the bill responds to public concerns, such as those raised by residents in Trenton regarding a proposed million-square-foot data center.
The proposed legislation would introduce several key changes, including requiring local citizen votes for new data center projects, establishing environmental standards, regulating water usage for cooling, compelling data centers to provide their own electricity, eliminating tax abatements, and prohibiting non-disclosure agreements to ensure transparency regarding companies behind projects. Representative Gross emphasized her responsibility to ensure safe drinking water and mitigate noise impacts on local flora, fauna, and property values.
However, the Data Center Coalition, an industry lobbying group represented by EVP Dan Diorio, vehemently opposes the bill. Diorio argues that if enacted, HB 983 would signal that "Ohio is closed for business," sacrificing the state's economic competitiveness and driving the industry out. He dismisses concerns about water poisoning and electricity overuse as unfounded, advocating for "fact-based, data-driven conversations" over explicit mandates. Gross, conversely, maintains that data centers are capable of retrofitting to comply with new rules, with non-compliance facing fines and license suspension. With over 150 data centers and more than a dozen hyperscale projects proposed across Ohio, including in Mount Orab, Hamilton, Trenton, Wilmington, and Pike County, a spirited legislative debate is anticipated.