Ohio is grappling with the growing impact of data centers on the state’s resources and economy, prompting a multifaceted response from state lawmakers and Governor Mike DeWine. Concerns center on rising electricity prices, water usage, and ensuring data centers contribute their fair share to the communities they inhabit.
Legislative and Executive Action
Governor DeWine has voiced support for a bipartisan effort petitioning PJM, the regional electricity transmission organization, to address supply and demand issues stemming from the expanding data center sector. He similarly vetoed a provision in the state’s 2026-2027 budget that would have exempted data centers from paying taxes on building materials, citing their economic importance to Ohio. This veto remains in effect.
The Ohio House of Representatives is considering House Bill 646, which would establish a “Data Center Study Commission” to assess the environmental impact, grid effects, water usage, and economic contributions of these facilities. The commission would also examine potential national security implications and even address reports of foreign interference. The bill is currently with the House Technology and Innovation committee.
Meanwhile, Senate Democrats are preparing a series of regulations focused on grid reliability, energy affordability, and responsible water utilize. Senator Willis Blackshear, Jr. Plans to introduce legislation requiring data centers to invest in public projects before connecting to the electrical grid.
Environmental and Economic Considerations
The Ohio Environmental Protection Agency is currently reviewing a permit that would allow data centers to discharge wastewater into state streams under certain conditions. According to the EPA, a lowering of water quality is “necessary to accommodate important social and economic development” in Ohio.
Governor DeWine has emphasized the importance of data centers to Ohio’s economic growth, stating that they “ought to pay their own share.” He acknowledged the need for further legislative action to prevent rising costs from being passed on to households.
Frequently Asked Questions
What is PJM?
PJM is the regional electricity transmission organization that serves Ohio, responsible for coordinating the movement of electricity to local distribution companies.
What is House Bill 646?
House Bill 646 would create a Data Center Study Commission within the Ohio Department of Development to examine the impacts of data centers on the state.
What is Governor DeWine’s position on data centers?
Governor DeWine believes data centers are important for economic development but should contribute their fair share and not cause household rates to increase.
As Ohio continues to attract data centers, the debate over their impact and regulation is likely to intensify, potentially leading to further legislative action and policy adjustments.
