Preparing for Data Center Development in Ohio
As demand for cloud computing and artificial intelligence continues to grow, more communities across Ohio are being considered as locations for data centers. These facilities can bring investment and construction activity, but they also raise important questions about infrastructure, utility costs, and long-term community impacts.
Ohio is home to more than 200 data centers, ranking among the top states in the nation. While many are concentrated in central Ohio, development is expanding to other areas across the state.
As communities evaluate proposed projects, several important issues deserve careful consideration.
Infrastructure. Data centers require enormous amounts of electricity and often significant water resources for cooling. New facilities may require additional transmission lines, substations, water system improvements, or other infrastructure investments. Understanding these needs early can help communities plan for future growth and ensure essential services remain reliable.
Community Impacts. Beyond utility needs, data centers may affect land use, traffic, emergency services, noise, and future development. Early coordination among developers, utilities, local officials, and residents can help identify concerns and improve planning.
Transparency. Developers sometimes ask local governments to sign non-disclosure agreements (NDAs) during early discussions. While protecting proprietary business information may be appropriate in some cases, public officials should carefully evaluate any confidentiality agreement to ensure it does not limit transparency or public participation. Consulting legal counsel before signing an NDA can help clarify its scope and obligations.
Who Pays? One important issue is ensuring that existing utility consumers are not asked to subsidize the costs of serving large new electric loads. The Office of the Ohio Consumers' Counsel (OCC) advocates for policies that require data center customers to bear the costs associated with the infrastructure and electricity needed to serve their facilities.
In 2025, the Public Utilities Commission of Ohio approved AEP Ohio's Data Center Tariff, requiring qualifying data center customers to pay for at least 85% of their contracted electric capacity for up to 12 years, even if they use less electricity. This approach is intended to reduce the risk that residential consumers will bear costs associated with serving these large facilities.
Thoughtful planning and informed decision-making can help Ohio communities welcome economic development while protecting local resources and utility consumers. The City of New Albany has developed a data center toolkit that may be helpful for communities evaluating future projects. Learn more about data centers and consumer protections at www.occ.ohio.gov/data-centers.
Maureen Willis
Ohio Consumers’ Counsel