Data centers boost Ohio’s economy, but diminishing returns fuel voter backlash
A Scioto Analysis report says Ohio’s data centers have generated substantial economic benefits, but the value of additional facilities is declining as electricity, water and environmental costs rise. The findings come amid voter backlash and political debate over requiring data centers to generate their own power, though a related Senate bill failed.
Ohio’s 257 data centers have generated nearly 100,000 jobs and an estimated $62 billion in net social benefits since 2013, according to a Scioto Analysis report. However, the report says additional facilities in counties that already host data centers produce diminishing returns as energy demand increases utility costs and development contributes to water use and environmental impacts.
The findings have intensified political scrutiny ahead of Ohio’s election. Former Sen. Sherrod Brown criticized Sen. Jon Husted’s past support for data center projects, while Husted has promoted legislation requiring data centers to provide their own electricity. The bill failed in the Senate, but the report said self-generation, particularly from renewable sources, could help preserve the industry’s economic benefits.