Ohio data center bill would require voter approval, ban local tax incentives
Ohio state lawmakers have introduced legislation, the Data Center Accountability and Citizen Protection Act, requiring voter approval for large-scale data center projects, banning local tax incentives, and imposing environmental standards. Concurrently, U.S. Rep. Greg Landsman has introduced federal bills targeting data center accountability. These legislative efforts come as Ohio's governor has already paused data center tax exemptions, and a local city council rejected a petition to ban such facilities.
State and federal lawmakers are advancing initiatives to regulate Ohio's rapidly expanding data center industry, which ranks fifth nationally for development. Ohio State Representatives Jennifer Gross and Michelle Teska have introduced House Bill 983, the Data Center Accountability and Citizen Protection Act. This proposed legislation seeks to empower communities by requiring voter approval for the construction or expansion of large-scale data centers and to eliminate local tax incentives for these facilities.
The bill also mandates that data center operators generate their own electricity and publicly disclose chemicals used in cooling systems. Rep. Gross emphasized that communities deserve a voice in deciding whether data centers are built in their areas, and highlighted provisions to set water quality standards to protect natural resources.
On the federal level, Democratic U.S. Representative Greg Landsman has put forward three bills aimed at data center accountability. His proposals would require data centers to cover all associated costs without taxpayer burden, eliminate non-disclosure agreements to ensure transparency, and establish national environmental impact standards. Rep. Landsman underscored the importance of providing Southwest Ohio families with comprehensive information and peace of mind regarding the environmental effects of these developments.
These legislative pushes occur amidst ongoing local and state-level discussions. Ohio Governor Mike DeWine has already temporarily suspended tax exemptions for data centers pending further state studies. Locally, the Trenton City Council recently rejected a citizen petition advocating for a ban on large-scale data centers, a decision met with vows from supporters to continue their fight.