Commissioners talk data centers

Communities across Ohio and the nation are grappling with the rapid growth of AI and data centers. Many residents are concerned about the effects on land, water, energy resources, and quality of life. As these developments accelerate, local leaders must put communities first by ensuring transparent decision-making and meaningful public input rather than relying on backroom deals. In 2023, the former KBI site was purchased for more than $50 million by a Texas-based company that was later acquired as part of the largest data center transaction in history. The company was clearly committed to a major investment. The site was already zoned for industrial use, and its water needs were relatively modest. Despite that, the Perkins Township trustees used a new authority granted by state lawmakers to approve one of the largest tax incentive packages in Erie County history. The agreement allows the company to divert 70% of the property taxes it would otherwise owe toward construction costs, representing hundreds of millions of dollars in lost public revenue. The deal was completed without meaningful community engagement and without serious consideration of the impact a massive data center could have on nearby residents and businesses. It also occurred months after the property had been purchased, which indicates what is now obvious, which is that the incentives weren't necessary at all. The company also received state tax incentives and grant funding that could have supported other priorities in Erie County. State leaders should re-examine whether these subsidies adequately protect taxpayers and hold data centers accountable. The local property tax giveaway is especially troubling when viewed against the needs of our community. Those revenues could have helped fund a new school, significantly reduce the property tax burden on Perkins residents and businesses, or improve infrastructure needed for housing and economic development. Instead, those opportunities were sacrificed without a clear public justification. More data centers will likely seek locations in Erie County in the years ahead. We must learn from this experience, which was a clear failure of the Perkins Township Trustees at that time. First, elected officials must seriously consider resident concerns and fully evaluate the effects of proposed developments on neighborhoods, businesses, and the environment. Second, local governments should avoid special tax breaks that shift costs onto residents while benefiting big tech, multi-billion-dollar companies. Finally, any tax revenue generated by data centers should be invested strategically in projects that create lasting benefits for Erie County. The debate over data centers is just beginning. While many questions remain, state and local leaders must work quickly to understand both the opportunities and the challenges these developments present.