Another Ohio bill looks to further regulate data centers, focusing on water usage

Ohio Democratic lawmakers, led by Sen. Willis Blackshear Jr. of Dayton and Sen. Casey Weinstein of Hudson, with co-sponsorship from Sen. Kent Smith of Euclid, have introduced Senate Bill 378. Titled the Responsible Water Use by Data Centers Act, the bill, introduced to the Ohio Senate on March 16, aims to regulate water consumption by data centers across the state. The proposed legislation would mandate that data centers bear all infrastructure costs incurred by water and sewer systems due to their establishment and operation, preventing these costs from being passed on to other ratepayers. Additionally, data centers would be required to obtain a permit from the chief of the Division of Water Resources for consumptive water withdrawal. The bill defines 'consumptive use' as water lost to the basin through processes like evaporation. A key provision states that permits would not be issued for withdrawals exceeding an average of five million gallons per day over a thirty-day period, and permits could be revoked if withdrawals exceed stated amounts or pose a public danger. This bill is not an isolated initiative; it follows House Bill 706, introduced in February, which similarly seeks to prevent data center infrastructure upgrade costs from burdening existing Ohio customers. That bill had its first committee hearing in March. The Office of the Ohio Consumers’ Counsel notes that Ohio hosts approximately 200 data centers, predominantly in central Ohio, highlighting their significant energy and water demands, with some hyperscale facilities consuming as much water as small cities for cooling. Despite these concerns, a recent study acknowledges the data center industry's substantial contribution to the state's economy and job market.