Local data center begins operations

PERKINS TWP. — The big data center in Perkins Township, at Hayes (Ohio 4) and Perkins avenues near Sandusky High School, has begun operations, even as construction continues on the site. Danny Finlay — a spokesman for Hotwire Global, the public relations firm associated with Aligned Data Centers — provided an update at the Register's request. "The first phase of the Aligned Data Centers Sandusky facility went live in January of this year and is currently operational," Finlay said. "We expect construction of the first building to be complete in the second half of 2027." In short, data centers store, process and move digital information behind everyday internet tools. They can also distribute and enable access to resources. Another question asked for clarity on the client(s) for this data center. "Due to contractual obligations, we're unable to name specific customers," Finlay said. "What we can share is that our customers include some of the world's most innovative companies, supporting the cloud, AI and digital infrastructure that power the services people rely on every day." Finlay did not immediately respond to a follow-up question about how many permanent jobs will be at the facility. But Aligned representatives previously indicated that at least 18 well-paying positions would be created in the first phase of development. In the meantime, large numbers of people in the construction trades have been working on the site. Making sense of the dollars and cents Officials broke ground in May 2024 at this site, the former home of a now-defunct ball bearings plant that had operated under various names, including Delphi and KBI. A year prior, in 2023, Aligned secured the land with intentions of investing about $202 million there to construct four separate buildings. This included spending $52 million for this 129-acre site. The company also received $6 million in state environmental cleanup funds. Additionally, the company is receiving tax incentives from both the: • State; In September 2023, the Ohio Tax Credit Authority agreed to approve a 15-year, 75% sales-tax exemption for the project. • Perkins Township and Perkins Schools approved a 30-year tax increment financing deal to aid the project with: — 70% of the new taxes generated by the work going to the developer — 30% of the new taxes generated going to the township and the schools Tax increment financing represents an economic development tool public entities can use to spur redevelopment for major projects. The deal was approved before data centers became controversial nationwide, with much of the debate centering on whether tax breaks for such centers are appropriate. Data centers elsewhere This marks the only operational data center in Erie County. Last week, Oxford Township trustees indicated they would not support a proposed development for a data center on West Mason Road near EHOVE Career Center. Trustees based their decision on many residents expressing their displeasure and issues. And, just south of Erie County, Monroeville officials continue to mull over a proposal. Beyond tax breaks, concerns about data center largerly revolve around noise, utility consumption and overall disruption to locals' quality of life.