Ohio Lawmakers, Voters Weigh New Rules on Rapidly Growing Data Centers

Ohio lawmakers and voters are currently evaluating multiple proposals aimed at regulating the rapidly expanding data center industry across the state. A significant piece of legislation, House Bill 646, has successfully passed the Ohio House and is now under review by the Senate. This bill seeks to establish a formal study group tasked with examining the comprehensive impacts of data centers, including their effects on energy demand, water usage, the environment, farmland, and local communities. Simultaneously, a separate initiative could allow Ohio voters to directly decide on future data center restrictions. Ohio Attorney General Dave Yost has certified a proposed constitutional amendment that would impose a strict limit, prohibiting any new data center facilities from consuming more than 25 megawatts of electricity. This proposal still requires approval from the Ohio Ballot Board and the collection of sufficient signatures to appear on a statewide ballot. Proponents of the 25-megawatt restriction argue it is essential to mitigate potential strain on Ohio's power grid and protect natural resources. However, critics express concerns that such a measure could deter significant technology investments and hinder job creation within the state. Further legislative considerations involve the financial implications of data center growth. Proposals are being discussed to mandate that data center developers cover the costs associated with water and sewer infrastructure for their projects and to ensure that existing utility customers are not burdened with expenses for expanding power capacity to accommodate these large facilities. These efforts highlight a statewide focus on balancing economic development and tax revenue from data centers with infrastructure demands and environmental stewardship.