Reps. Gary Click, Kellie Deeter propose new commission to study data center impacts

Ohio lawmakers have announced legislation to create a study commission to examine the growing impact of data centers in the state, amid rising concerns about energy demands and utility costs for residents.

State Reps. Gary Click, R-Vickery, and Kellie Deeter, R-Norwalk, introduced House Bill 646 on Jan. 13 to establish the Ohio Data Center Study Commission within the Department of Development. The bipartisan 15-member panel — with appointments from legislative leaders, the governor and other officials — would analyze the multifaceted effects of data center development, including economic benefits, environmental consequences, infrastructure strain and land use issues.

The bill responds to the rapid expansion of data centers across Ohio, which now ranks among the top states for such facilities.

Central Ohio alone hosts approximately 100 operating data centers, with about 70 more planned by 2030, making the Columbus area a major hub. Companies like Meta, Microsoft, Amazon and Google have poured investments into the region, drawn by infrastructure and incentives.

Proponents say the facilities bring jobs and tax revenue, but critics highlight drawbacks such as massive electricity and water consumption, noise pollution, loss of farmland in rural areas and pressure on the power grid.

“We have heard the concerns of our communities and taken time to speak with those in the industry,” Click said in a release. “We feel that this is the best approach to ensure that every voice is heard.”

The commission would study these issues to inform future policy, prioritizing redevelopment of brownfields over greenfield sites following the passage of House Bill 15.

Click emphasized a “thoughtful approach” to balance growth with community needs. Deeter noted concerns from her rural district about the loss of productive farmland and greenfield development.

The proposal comes as Ohio residents face higher utility bills linked to data center energy demands.

Wholesale electricity prices in data center-heavy areas have surged significantly in recent years, contributing to residential rate increases. For instance, some analyses show Ohio residential electricity prices rising well above inflation since 2020, with data centers driving grid upgrades and capacity costs that pass through to consumers.

In central Ohio, public backlash has grown over proposed rate hikes by American Electric Power Ohio, which could add to monthly average bills by 2027 if approved by regulators.

As a result, tech giants are responding with mitigation efforts. Meta is partnering to develop small modular nuclear reactors at a former uranium enrichment site in Pike County to power its massive Prometheus data center in New Albany — the world’s first to require more than 1 gigawatt — while investing in existing nuclear plants. Microsoft has pledged to cover its own energy and water costs without burdening ratepayers.

The bill, which declares an emergency, will take effect immediately if passed. If passed, the commission could begin delivering recommendations that guide Ohio’s approach to the data center boom before the next legislative session.