Columbus Eyes Surcharge on Data Centers, Big Water Users to Ease Bills
Columbus Water and Power has proposed a high-demand water surcharge for commercial customers, including data centers, that use unusually large and variable amounts of water. The proposal is intended to recover the cost of extra treatment, pumping, storage and distribution capacity, and will be considered through the city council process before possible implementation in late 2027 or early 2028.
Columbus Water and Power has submitted a proposed rate structure that would charge qualifying high-volume commercial customers an additional $1.62 per CCF of water. Customers using at least 100 CCF per month with a peak-demand factor of twice their typical usage could qualify, with data centers among the industrial users under consideration. Officials estimate about 426 customers could generate roughly $6 million annually under the model.
Deputy Director Jon Lee said the surcharge would ensure customers that create higher system-capacity requirements pay an appropriate share of those costs. Councilman Christopher Wyche and Councilman Emmanuel Remy said the approach is intended to prevent large users from shifting infrastructure costs onto households and smaller businesses, though the proposal does not guarantee lower residential bills.
The proposal is scheduled for public discussion and further readings by Columbus City Council, with new charges potentially beginning in late 2027 or early 2028. The effort comes as central Ohio data centers consume millions of gallons of water daily, with regional demand projected to reach about 70 million gallons per day by 2040 and the city planning additional water infrastructure, including a fourth treatment plant.