Ohio communities continue whack-a-mole approach to data centers

Without a single statewide strategy for local communities to follow when assessing whether to allow data centers, local jurisdictions have effectively resorted to a whack-a-mole approach.

One by one, local leaders are assessing the pros and cons of data centers, while in many cases also responding to citizen-led pushes for either ballot initiatives or all-out bans on data centers.

To be sure, data centers have turned into one of the hottest topics in Ohio’s political landscape this year, but what makes the examination of data centers particularly intriguing is that those for and those against don’t break along traditional party lines. That is, not all Democrats or Republicans are for or against data centers.

Republican Gov. Mike DeWine signed The White House’s Ratepayer Protection Pledge. As part of the pledge, “companies agree to protect American consumers from price hikes due to data center energy and infrastructure requirements, and lower electricity costs for consumers in the long term.”

However, the lack of a unified approach also means communities’ responses have run the gamut. Some like Cleveland and Grove City have opted for temporary total bans, while others, such as New Albany, have wholeheartedly embraced data centers in their communities.

“We’re not saying ‘absolutely no’ to data centers,” Cleveland Councilman Brian Kazy, chair of the utilities committee, told WEWS-TV/News 5 Cleveland after the city voted last month for a three-month pause. “We’re not saying ‘absolutely yes’ to data centers. What we’re saying is, ‘today is the beginning of gathering that information.’”

The latest salvos in the ongoing data center debate have been Columbus and Grove City.

The Franklin County Board of Elections certified a petition advanced by citizen group Project Grove City to amend Grove City’s charter to mandate referendums on large-scale developments. The city last month imposed a 12-month moratorium on data centers.

In Columbus, some residents wanted city leaders to clamp down on data centers, either through stringent regulations or a moratorium, The Columbus Dispatch reported.

City Councilmember Christopher Wyche is eying measures to regulate data centers that use Columbus water, even if they are outside the city limits. Among the proposals would be paying for sewer system upgrades their projects need, water conservation plans, and plans for decommissioning centers.

“Whether these data centers are built in the city, somewhere else in Ohio or in another state on the same electric grid, our communities will still be impacted,” Wyche said, per The Columbus Dispatch. “We’d rather be at the table to protect our residents and resources as much as possible and ensure our communities don’t foot the bill while receiving no real benefits.”

Wyche told WOSU the city isn’t considering an all-out ban, despite the push by many residents, because there are no data centers planned for the city at this time, WOSU reported.

“We have the benefit of time,” Wyche told WOSU. “We currently do not have any hyperscale locations that are looking to locate in the city of Columbus. And so we can be proactive on the front end to develop what a regulatory environment might look like for that type of facility.”

While a statewide vote on a constitutional amendment to ban data centers in Ohio will not be on November’s ballot, advocates for the prohibition are working toward putting it in front of voters next year.

Separately, the Ohio EPA on Tuesday said it “has decided not to move forward with finalizing the general permit” after “carefully reviewing the significant volume of public comments received.” Instead of advancing the National Pollutant Discharge Elimination System, it will continue with case-specific permits.

“The individual NPDES permit issuance process is the most appropriate path forward at this time,” the Ohio EPA said in a statement. “Individual NPDES permits will continue to uphold the same rigorous environmental standards and protections required under state and federal law.”

Among those who called on stringent environmental standards for data centers was Republican U.S. Sen. Bernie Moreno.

“Data centers should be held to the same, or higher, environmental standards as any other business,” Moreno said in a post to X last week. “This nonsense needs to end, as do the dumb tax incentives, and all data centers should never raise electricity costs!”