State data center study may be drawing nearer

NORWALK — State lawmakers apparently are getting closer to launching a study of how data centers affect people in Ohio. A bill by two local lawmakers, state Rep. Gary Click, R-Vickery, and state Rep. Kellie Deeter, R-Norwalk, apparently helped create momentum for such a study. Ohio has become a booming area for building data centers, which house computers often used for artificial intelligence. Deeter and Click said about 200 data centers are operating in Ohio with proposals for more on the drawing board. One such data center is the new Aligned Data Centers facility at 2509 Hayes Ave. (Ohio 4) in Sandusky, at the former KBI auto parts plant, which remains under construction. Proponents argue that data center construction helps the economy and is vital for the AI industry. Opponents have complained about energy use and water use by data centers and said they don't provide enough jobs to justify the tax breaks such centers often receive. Ohio House members voted 97-0 on March 18 to approve House Bill 646, co-authored by Click and Deeter. The measure would establish the Ohio Data Center Study Commission to examine data centers and issue a report. Changes proposed The bill has been assigned to the Ohio Senate's Financial Institutions, Insurance and Technology, but Deeter and Click both report that senators have proposed instead establishing a joint House-Senate committee for such a study, which differs from the original proposal that would also have included several appointees from the governor. That apparently would allow a study to be carried out more quickly, both lawmakers said. Deeter said she isn't opposed to the Senate's idea. "It has the potential to commence much sooner and will be comprised of only legislators from both chambers," Deeter told the newspaper. "This will allow all parties to give testimony on equal footing rather than having some experts, but not all, be represented on the committee." Click similarly said that getting a study done is the most important goal. "I have had very productive conversations with the Senate. It may be more efficient and timely to have a joint legislative committee. I am not opposed to that," Click said. "This is a collaborative effort between us and the Senate. I will be happy with whatever form it takes so long as we can get it across the finish line," he said. State Sen. Theresa Gavarone, R-Bowling Green, who represents Sandusky, said there have been discussions between the House and Senate but no committee has been formed yet. Efforts to regulate Several bills have been introduced in the Ohio General Assembly to slow down data center construction and impose more regulations. For example, Senate Bill 374, introduced March 11 and authored by a bipartisan duo, state Sen. Kent Smith, D-Euclid, and state Sen. Louis Blessing III, R-Colerain Township, would ban tax breaks after Oct. 1, 2027, for new data centers. The measure has been sent to the Ohio Senate's Finance Committee. In addition, data center opponents are planning to launch a petition drive to put a state question on the ballot to ban construction of data centers. If passed, the proposal would amend the state constitution. Ohio Attorney General Dave Yost announced on March 26 that he's approved a summary of the proposed amendment as a fair and truthful outline of the proposal. The people backing the ban will have to collect enough signatures from registered voters to get the measure on the ballot.