Data Center Expansion: Growth meets oversight
A new bill, House Bill 983, has been introduced in the Ohio State House, aiming to impose significant restrictions on data center development and operations statewide. The proposed legislation would require local citizen votes for new data centers, set environmental and water usage standards, and eliminate tax abatements, sparking debate between citizen advocates and industry lobbyists.
A new legislative effort in Ohio, House Bill 983, aims to significantly tighten regulations on the data center industry across the state. Introduced by State Representative Jennifer Gross, the 'Data Center Accountability and Citizen Protection Act' was prompted by citizen concerns, including a proposed 230-million-square-foot data center in Trenton, where residents felt they had no recourse against such developments.
The proposed bill would mandate local citizen votes for future data center projects, establish environmental standards, regulate water consumption for cooling, require data centers to generate their own electricity, eliminate tax abatements, and ban non-disclosure agreements to ensure transparency regarding project proponents. Representative Gross emphasized her responsibility to ensure safe drinking water, noise abatement, and protection of flora, fauna, and property values for Ohio residents.
However, the legislation faces strong opposition from industry representatives. Dan Dioro, speaking for the Data Center Coalition, a lobbying group, warned that if enacted, the bill would signal that "Ohio's closed for business." Dioro dismissed concerns about water pollution and electricity overuse as unfounded, arguing that such explicit mandates would disadvantage Ohio and jeopardize its economic competitiveness.
The bill's provisions would also apply to the state's more than 150 existing data centers and over a dozen proposed projects in locations like Mount Orb, Hamilton, Trenton, and Wilmington. The Data Center Coalition contends that compliance for existing facilities would be impossible, potentially driving the industry out of Ohio.