Data center questions answered

SANDUSKY — Some community members want answers regarding how data centers operate, pointing to the facility under construction within the 44870 ZIP code. One local official, meanwhile, provided some clarity and context. During Monday's Sandusky city commission meeting, a resident expressed concerns about data centers and their potential impacts. Specifically, she mentioned the Aligned Data Centers project on West Perkins and Hayes avenues (Ohio 4) near Sandusky High School and how utility usage — water, sewer and electricity — would affect residents, her community and the city at large. She also wanted to know if the data center's presence would increase utility bills and rates for these essential services. Project context Back in 2023, Aligned secured the land with intentions of investing about $202 million there to build four data centers. It's being built on the grounds formerly home to Delphi, New Departure, New Departure-Hyatt and KBI. The former bearings plant, which underwent those aforementioned name/company changes, is rooted at the very start of the U.S. automotive industry. Aligned, regarded as a leading technology infrastructure company, offers innovative, sustainable and adaptive solutions for various projects, according to a company statement. Data centers are typically used to house computer systems and associated components. Aligned specifically specializes in energy consumption, water usage and brownfield remediation. It also powers cloud services, high-performance computing, AI applications and a variety of other systems and technologies. "We will be creating new jobs, bringing new investment here and (providing) investment for innovative businesses that are looking to relocate here," David Robinson said in May 2023. As of that reporting date, he served as the general counsel and executive vice president of Aligned Data Centers. "We will be returning these abandoned brownfield sites back to productive use, transforming the property into a valuable and enduring asset for the local community," Robinson said. Speaking up While technically not located within city limits — Aligned Data Centers is actually being built in neighboring Perkins Township — Sandusky's leading administrator did offer up some answers in public. Here's what city manager John Orzech said during the recent commission meeting: • The overview: "The project is in Perkins Township, and I've been in contact with those Perkins Township officials as well as FirstEnergy because the energy grid is a big question mark for data centers." • The water usage: "So the data center itself, as far as water consumption is concerned, they have a self-contained water-cooling system that they are utilizing at the facility. It'll take up to 1 million gallons of water to fill that up when they initially open up, but then they'll only require water that is circulated and evaporated in this system." • The water comparison: "Our understanding from the report that we received from Perkins Township is that consumption of water is about 90% less than what KBI and that facility were using in the past. We are not really concerned about the water. Initially, there (will be) 1 million gallons (used at the data center). Our plant produces 3 million (gallons) or so a day more than we use in our peak. Whenever that place opens up, we should be fine with the water. Our water plant can handle that." • The electric usage: "The biggest concern and questions and comments that I hear, via social media channels, is the electric grid. As everyone knows, there is an electric substation there that is primarily for that facility. It's been in existence for some time now. They had to work through configurations and plans, and we are aware of how much energy was going to be used. They have been working with FirstEnergy for a number of years that required approval. The first phase of the building in that project is done. There are a couple more phases that are coming. But they are starting the electric grid infrastructure that is required in an expansion of what they are utilizing out there in their electric grid. That expansion will cover their facility." Note: It hasn't been publicly revealed when the data center could fully open. Perkins Township officials intend to receive an update later this month, which could answer this question. • The rates: "As far as rates are concerned and people concerned that Sandusky residents or Perkins (residents) or anybody in Erie County is going to be impacted, the rates are controlled by (the Public Utilities Commission of Ohio), so that is done through an assessment and is impacted for a number of different states in our region. It's not Ohio-specific. There are five or seven different states that are region is under (the utilities commission). If there is a rate increase for infrastructure needs and whatever FirstEnergy and the electric grid need, it's disbursed through all of the customers through all of those states. They just don't specifically say, 'Sandusky, Ohio, is using more electricity. We need to charge them more.'" • The noise aspect: "The other concern that I have heard about is the potential noise from the generators and all of that. I don't know the answer to that." Orzech ended his statement by noting people can reach out to Perkins Township administrator Gary Boyle for more information. People can leave an inquiry by calling 419-609-1400 or visiting perkinstownship.com/contact-us.