Ohio House members propose sweeping bill to regulate data center development
Ohio House members have introduced House Bill 983, a far-reaching bill designed to regulate data center development across the state. The proposed legislation would require voter approval for new data center projects, impose strict environmental standards, and ban local property tax incentives. If enacted, the bill is expected to significantly slow down or halt data center growth in Ohio due to its stringent requirements.
COLUMBUS – Legislators in the Ohio House of Representatives have introduced House Bill 983, a comprehensive piece of legislation aimed at regulating the rapid growth of data center development statewide. The bill addresses mounting concerns regarding the environmental, aesthetic, and public finance impacts of the industry's expansion in Ohio.
Key provisions of HB 983 include a requirement for voter approval for any new construction or expansion of data centers with a peak electric load exceeding one megawatt within five miles of a municipality or township. Permits issued without such approval would be void. Additionally, the bill proposes new air emission and water discharge standards for substances like PFAS, glycols, and metals, which would apply to existing data centers after an 18-month grace period.
Financially, the legislation seeks to prohibit local governments from offering property tax incentives to data centers and associated power plants, while also mandating public disclosure of all development and supply agreements. Data center owners would also be held financially accountable for any impacts on local water supply and pressure.
While intended to mitigate public utility strain, environmental concerns, and prevent wasteful incentive spending, critics suggest the bill, particularly the voter approval mandate, could effectively halt data center development across Ohio. Developers are projected to invest $40 billion in data centers in the state over the next four years, and this legislation could lead to tens of billions of dollars in lost investment, significantly impacting the state's economy.