Will Ohio Adopt a Data Center Ban?
We’ve talked about how much energy data centers require. Even with tariffs in place, this high energy demand could lead to higher Ohio natural gas prices for everyone. That’s why a group of Ohioans are working hard to get a data center ban vote onto the November ballot. Here’s what you need to know about the proposed Ohio data center constitutional ban.
Why Ban Data Centers?
Right now, Ohio has close to 200 data centers, most of which are in central Ohio. According to the Office of Ohio Consumers’ Counsel, big data centers use as much power as 100,000 homes. In fact, data centers used 4% of all electricity in the US in 2023. That usage may rise to nearly 10% by 2030. On top of that, some data centers can use up to five million gallons of water per day for cooling!
As you can imagine, these high demands could have huge effects on Ohio electric rates. That’s why Conserve Ohio put together a petition to put a constitutional ban on the November 2026 ballot. The ban would stop data centers with a peak load higher than 25 Megawatts (MW) per month.
But to get it on the 2026 ballot, the petition needed over 413,000 signatures from 44 of Ohio 88 counties before July 1. On June 19, Conserve Ohio decided it couldn’t make that deadline.
Ohio Actions Against Data Centers
The petition isn’t the only action being taken against Data Centers.
For example, to better shield residential consumers, AEP Ohio proposed a data center tariff that would charge data centers to pay 85% of their costs over a 12-year period. The state has also ended data center tax break subsidies. Combined, this presses tech firms to fully commit to projects.
Despite this, however, two data centers owned by Cologix have been granted $42 million tax breaks. In exchange, the company promised to spend $1.17 billion to build them. It also pledged to hire 90 full-time workers before 2035 with a payroll of $10 million. In addition, the company would agree to keeping these centers open for at least 13 years.
What Happens Next For Data Centers
While the petition will now take longer to get on the ballot, data center technology is evolving. So, the industry must develop new ways to power and cool their systems that respect their communities and natural resources. Those that persist in trying to pass higher costs on to local energy consumers will undoubtedly go bust.
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