Ohio Senate passes legislation to regulate data centers, critics say bill doesn't go far enough
Ohio lawmakers have passed legislation to regulate data centers, which includes cutting tax exemptions and setting new standards for electricity and water use. Critics argue the bill does not go far enough and are pushing for further measures, including a constitutional amendment to ban large data centers. Residents in Adams County have expressed concerns over environmental impact and lack of local input.
The Ohio Senate has advanced Substitute House Bill 646, marking what could be the state's initial comprehensive regulatory framework for data centers. The legislation proposes halving sales and property tax exemptions for these facilities and introduces provisions to protect Ohioans from increased electricity costs due to data center energy demands. Additionally, it establishes new standards for water usage, encompassing reporting, conservation, and quality.
However, the bill has drawn criticism from various groups, including Policy Matters Ohio, which argues the tax incentives should be eliminated entirely and points out that the bill does not address $1.5 billion in existing tax breaks for major tech companies like Amazon, Google, and Meta.
Local residents in Adams County, particularly near Manchester, have expressed significant concerns regarding the environmental impact of data centers and are advocating for a moratorium on new developments until adequate safeguards are in place. Danielle Kinhalt of Conserve Ohio highlighted the disenfranchisement felt by small, rural, and zoned communities, emphasizing their lack of say in such projects.
Despite the criticism, the chair of Ohio's Senate Energy Committee stated that this bill is merely an initial step, with more legislative consideration anticipated. Concurrently, Conserve Ohio is pursuing a constitutional amendment to prohibit large data centers, having collected 60,000 signatures towards the 413,000 required to place the issue on the November ballot.