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Selling the Buckeye State? The Devastating Hidden Cost of Data CentersReading Mode

Written by richard-mcdonald

Data centers have become a relatively recent, but very important topic, both nationally and in the state of Ohio. To the average person they are a tech term that is disassociated from the average Ohioan’s day-to-day life. The term sounds innocuous enough, but the reality for the people of Ohio may be anything but that.

The Pitch

The pitch is simple. Data centers are the future. Tech is our savior. Tech firms want to invest billions of dollars into our state, which will grow GDP. GDP is the ultimate arbiter of economic health for Ohioans.

The reasoning seems sound, but are data centers a case study in the colloquialism “looks good on paper”? Surely our elected representatives and multinational hord of corporate interests wouldn’t mislead the people of the buckeye state (sarcasm not subtle).

The Delivery

The state of Ohio is currently home to approximately 135 operational data centers. Current projections include an increase to nearly two hundred data centers by the end of this decade. These data centers range in size from small “micro data centers” of approximately 5,000 square feet, to massive “hyperscale data centers” of a million square feet. More impressive than the physical size of these data centers, is the electricity consumption.

Electrical requirements

Data centers are large scale energy hogs, with facilities in the category of “hyperscale” using the same amount of energy as 100,000 homes. Data centers are currently estimated to consume 10% of statewide grid usage. That may not seem like a significant portion of the overall consumption, but it is an alarming rate. When considering the rapid proliferation of these data centers and projected growth, our electrical infrastructure will soon be overwhelmed.

Some professionals and watchdog groups, like Monitoring Analytics, have claimed the next decade of data center expansion will lead to brown and black outs in the state. Monitoring Analytics has asked the Federal Energy Regulatory Commission to instruct PJM Interconnect, who operates Ohio’s electrical grid, to halt data center interconnection.

Recent peak load for the entire state of Ohio has been approximately 9.5 gigawatts. The alarming figure, according to AEP, is a proposed 17 gigawatts of new data centers in this decade, with no means of production. Sites like Meta’s “Promethius” data center, the world’s highest-capacity data center, is a planned 1 gigawatt facility, on a grid that has a normal peak load of 9.5 gigawatts.

A study conducted by the Ohio Chamber Foundation suggested the current planned data centers would require an additional 7.6 gigawatts by 2030 and 15 gigawatts by 2034. Both studies show different, but alarming trends of an electric grid demand that cannot currently be met.

Ohio currently imports approximately 15% of statewide energy consumption, with the last decade of statewide electrical generation being flat. Various proposals are being considered in an effort to produce more energy in Ohio. Ideas like renewables, and even mini nuclear reactors have been offered as solutions.

Economic impact

In a recent economic impact study conducted by SRC EvalMetrics LLC for the Ohio Chamber of Commerce Research Foundation, growth and impact was estimated to be 95,217 total jobs in 2024, $11.8 billion to Ohio’s GDP and over $40 billion in committed private capital investment. Other studies have estimated $100 Billion in the next decade.

There are several downstream effects of Ohio’s data center boom, such as infrastructure improvements, spending and increased property tax, but are those really beneficial? It would seem Ohio politicians are falling over themselves in an effort to hand corporate data centers as many tax breaks as possible.

In 2024 data centers claimed nearly $120 million in state sales tax exemptions. On top of sales tax exemptions, many data centers claim new job creation tax credits, which provide a 75% reduction in their state commercial activity taxes over a set period. Many of these data centers are built on land that has received 100% tax abatement for 15 years.

The economic impact is fairly poor. While billions are poured into the state, very little makes it to Ohioans. While residential property taxes sky rocket, massive, million square foot data centers pay little to no property tax. While small businesses pay exorbitant taxes, these data centers pay little.

Beyond the GDP growth, state and local revenue, and employment, there is a hidden cost to all Ohioans. Ohioans saw a nearly 25% increase in electric prices in 2025. Efforts have been made, at the state level, to legislate that added demand and subsequent cost not be passed on to residential consumers, but it is still unclear how effective those measures will be.

In addition to the immediate and acute increase in electricity costs, data centers use massive quantities of water for cooling. What will this mean for Ohioans and their ability to access clean, safe water for their homes, and outdoor water recreation?

The true impact is unknown.

Non economic impact

Beyond the measuring stick of dollars, what impact will the mass onset of these massive data centers have on our land and lives? This is a question that calculators and algorithms cannot measure or quantify. This question dwarfs GDP or jobs. The voters have an obligation to our posterity to steward this great state.

As technology advances and these centers become inadequate or unnecessary, will they litter the countryside like the abandoned malls and Wal-Marts, left to crumble and drive down property values?

Do we want the heart of it all to become the silicon heartland? We’ve already had our countryside violated with solar farm abominations. How many wetlands will we ruin? How many rivers will run dry? How many deer stands will come down? How many towns will be hollowed out?

For What?

​Works Cited (Click here):

Economic Impact Study of Data Centers in Ohio

  • Date: September 2025
  • Relevancy: This primary source, conducted by SRC EvalMetrics LLC for the Ohio Chamber of Commerce Research Foundation, provides the foundational data for the author’s economic claims. It estimates a contribution of $11.8 billion to Ohio’s GDP and confirms the 95,217 jobs supported in 2024. It also projects that total load requirements could reach 7.6 GW by 2030.
  • Full URL: https://ohiochamberfoundation.com/wp-content/uploads/9.29.-25-EXECUTIVE-SUMMARY-V5.pdf

Quick Facts: Data Centers in Ohio | Office of the Ohio Consumers’ Counsel

  • Date: January 22, 2026
  • Relevancy: Supports the author’s “energy hog” comparison, explicitly stating a single hyperscale data center can use as much electricity as 100,000 homes. It also corroborates the figure of $40 billion in private capital investment planned for Ohio data centers by 2030.
  • Full URL: https://www.occ.ohio.gov/data-centers

Data Center Giants Meta and Microsoft Try to Offset Rising Utility Rates

AI and Other Tech are Consuming Our Electric Grid | Policy Matters Ohio

Executive Summary – Independent Market Monitor (Monitoring Analytics)

AEP Ohio Reaches Potential Settlement on Contested Data Center Proposal

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