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Ohio's Data Center Boom Is Sparking a Statewide Backlash. Here's What Comes Next.

Ohio is experiencing a rapid expansion of data center development, with over 200 facilities now operating across the state, but growing concerns about energy consumption, water usage, and community impact have sparked a grassroots movement to restrict future growth. The acceleration has prompted lawmakers to take action, with the state House unanimously passing a bill to create a data center study commission, while a coalition of rural communities is working to get a constitutional amendment before voters that would ban large data centers.

Why Are Rural Communities Fighting Back Against Data Centers?

The rapid expansion of data centers across Ohio has raised alarm bells in rural areas, where residents worry about the long-term consequences of hosting these power-hungry facilities. Austin Baurichter, a Brown County attorney leading the anti-data center amendment effort, explained that many communities were kept in the dark about development plans until it was too late to voice concerns.

"They had their village council, you know, a developer came in and got their village counsel under an NDA, advanced a purchase agreement, this and that, right? And so it was, people began to understand what was happening, that there was a data center in the works," said Baurichter.

Austin Baurichter, Brown County Attorney

The petition effort targets data centers larger than 25 megawatts, a threshold Baurichter and his team determined based on scientific research and what other states have been considering. The amendment would prohibit construction of new large facilities, though existing data centers would be grandfathered in. To get the measure on the November ballot, organizers must collect 413,000 valid signatures by July, a significant undertaking that relies on infrastructure already built by concerned communities across the state.

What Are the Key Concerns Driving the Movement?

Data center development raises multiple interconnected issues that extend beyond simple "not in my backyard" sentiment. The concerns include:

  • Energy Consumption: Large data centers require massive amounts of electricity, straining regional power grids and potentially driving up utility costs for residents in surrounding areas.
  • Water Usage: Data centers use significant quantities of water for cooling systems, raising questions about sustainability in communities already facing water scarcity concerns.
  • Land Use: The facilities require substantial acreage, converting agricultural or undeveloped land and changing the character of rural communities.
  • Lack of Community Input: Developers often negotiate with local officials under non-disclosure agreements, leaving residents unaware of projects until they are already in advanced stages.

The movement in Ohio is not isolated. At least 11 states, from Vermont to Georgia to South Dakota, have introduced legislation to temporarily prohibit large data centers, though efforts have faced mixed results. Maine's legislature recently passed a moratorium, only to have the governor veto it.

How Are States Addressing the Energy Challenge?

Pennsylvania offers a contrasting approach to Ohio's grassroots ban effort. Governor Josh Shapiro has released detailed policy standards called the Governor's Responsible Infrastructure Development (GRID) Standards, which aim to manage data center growth rather than restrict it. The policy requires developers to provide their own energy sources and pay for grid infrastructure upgrades triggered by their projects.

Under Pennsylvania's GRID framework, data center developers must agree to build, bring online, or buy incremental electric capacity needed to meet new energy demand while covering all associated costs. The new energy generation must be located within the same region of the grid as the data center. Additionally, developers must commit to using an escalating portion of "clean firm" energy sources, defined as nuclear energy, hydroelectric power, geothermal energy, fuel cells, solar energy, wind energy, clean hydrogen-fueled energy generation, and long-duration storage resources.

The clean energy requirements increase over time: 10 percent in 2027, 14.5 percent in 2030, and 32 percent by 2035. Data centers with over 100,000 square feet of floor space must also build roofs that are "solar ready".

What Are the Challenges With Pennsylvania's Approach?

While Pennsylvania's GRID standards represent a middle-ground approach between Ohio's proposed ban and unrestricted development, experts warn that the policy has significant limitations. John Quigley, former secretary of Pennsylvania's Department of Environmental Protection and now senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, noted that much of the policy still requires legislative action to become binding.

"Major pieces of this program still require passage of legislation by the General Assembly, and until then won't change the facts on the ground in host communities," said Quigley.

John Quigley, Senior Fellow, Kleinman Center for Energy Policy, University of Pennsylvania

Another challenge is the feasibility of the "bring your own energy" requirement. Natural gas has been the primary fuel powering data center development so far, but there is a yearslong queue for new gas turbines, and more natural gas is being liquefied and shipped overseas, making it unclear whether developers can realistically meet the requirement in the short term.

Consumer advocates have proposed an alternative framing: "Bring Your Own New Clean Energy" (BYONCE), which would prioritize renewable and nuclear sources over fossil fuels. Elizabeth Marx, executive director of the Pennsylvania Utility Law Project, emphasized that the transmission and distribution costs needed to deliver new energy to data centers could hit consumers in a second wave of rate increases, after the initial spike driven by forecasts of energy scarcity.

"We have yet to see the transmission cost increases that are coming, because a lot of transmission is currently being built to transport energy and the tab won't show up for consumers until it's done. So we're not seeing that spike yet, but it's coming," said Marx.

Elizabeth Marx, Executive Director, Pennsylvania Utility Law Project

Pennsylvania's average household electricity rates jumped nearly 14 percent in the last year, a trend that policy experts attribute partly to forecasts of impending energy scarcity driven by data center demand. The state is on the front lines of AI data center development, making energy policy decisions particularly consequential for residents.

What's at Stake for States and Voters?

The divergent approaches in Ohio and Pennsylvania reflect a broader national tension over how to balance economic development with community protection. Ohio's grassroots amendment effort represents a direct democratic challenge to data center expansion, while Pennsylvania's GRID standards attempt to manage growth through regulatory guardrails. Both strategies acknowledge that the status quo is unsustainable, but they differ fundamentally in whether large data centers should be permitted at all.

For Ohio voters, the November ballot will present a clear choice: ban large data centers outright or allow them to continue under existing regulations. For Pennsylvania, the question is whether voluntary standards and legislative action can adequately protect consumers and communities from the costs and impacts of rapid data center proliferation. The outcomes in these two states will likely influence how other regions approach the challenge of powering artificial intelligence infrastructure while protecting residents from rising energy costs and environmental strain.