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Columbus is on track to become the second-largest data center hub in the Great Lakes region, behind Chicago, according to a new multi-state report. Growth is driven by strong infrastructure, available land, reliable power, and business incentives, with major firms like Amazon, Meta, and Google expanding nearby. Ohio already hosts more than 100 data centers, with dozens more planned. While the boom is creating construction jobs and investment, it also raises concerns about energy use, water resources, and long-term economic impacts across the state.
Columbus is emerging as a major data center hub in the Great Lakes region.
The data center hub growth trend is reshaping Ohio’s economy, energy use, employment landscape and community planning.
According to a new multi-state report, Columbus is on track to become the second-largest data center hub in the region behind Chicago, surpassing traditional markets like New York City.
The data center hub expansion is part of a broader growth pattern seen across the United States, particularly as demand for cloud computing, artificial intelligence, and digital infrastructure climbs. Analysts say the region, powered by robust infrastructure and business incentives, is drawing significant investment, reports from WOSU Public Media say.
Why Columbus is emerging as a data center hub
Columbus and central Ohio have been a magnet for data center projects for years, but the latest findings indicate a dramatic acceleration. The University of Virginia’s Weldon Cooper Center for Public Service recently released a comprehensive report showing that, as of 2024, more than 525 data centers operated across the Great Lakes region — about 20 percent of U.S. facilities — with 224 planned by 2030.
Ohio, and specifically Columbus, sits at the heart of this growth. The state already hosts more than 100 operational data centers and will add dozens more in the coming years, with Columbus projected to eclipse New York City as the region’s second-largest market.
Several factors contribute to this momentum:
- Strategic geographic location. Columbus sits within easy fiber network reach across the Midwest.
- Existing infrastructure. Major tech companies like Amazon, Meta and Google have large data campuses nearby.
- Energy and utilities. Ohio offers competitive power availability and incentives that appeal to hyperscale operators.
- Business incentives. Tax exemptions and economic programs make investment more attractive.
Industry sources note that Columbus far outpaces other cities in planned growth. The Cooper Center report cited Columbus among top U.S. metros for planned data center developments, reflecting both private investment and strategic site selection.
Economic ripple effects across Ohio
The rise of the data center hub in Ohio is creating a mix of economic outcomes.
On the positive side, the rapid development is boosting short‑term employment and local investment. The Cooper Center figures show that data centers have generated around 22,300 construction jobs in Ohio as facilities are built, though only about 4,500 permanent jobs exist once operations begin.
Public revenue from property taxes, sales taxes on equipment, and business activity has increased, though local communities sometimes debate the net benefit. Incentives and exemptions that help attract facilities can also reduce short‑term revenue for counties and townships.
Lawmakers have taken notice. Ohio House Bill 646, introduced in January, would establish a Data Center Study Commission to explore how data center development affects farmland, energy prices, water supply, and local economies, especially in rural counties.
Energy consumption and grid implications
Data centers are heavy users of electricity, and analysts say this trend will stretch Ohio’s energy systems. The Cooper Center report concluded that energy consumption tied to data centers in Ohio could more than double by 2030, rising from about 5.3 percent to nearly 10.9 percent of statewide electricity use.
Experts explain that newer, hyperscale data centers — often the size of multiple big‑box stores — require more electrical load and operate continuously to support cloud services and AI workloads.
Nationally, broader industry data show that data center demand is outpacing supply, leading to historically low vacancy rates and increased pressure on power infrastructure. This trend is echoed in markets beyond the Midwest.
Utilities and policymakers are now considering how to balance grid reliability, renewable energy goals, and the accelerating power needs of major data facilities. The planning process implicates long‑term infrastructure investments and energy pricing for residents and businesses.
Environmental and community concerns around growth
Rapid expansion of the data center hub in Ohio has drawn attention from residents, environmental groups, and local officials. Data centers can strain local water resources due to heavy water use for cooling and energy production.
A separate report from the Alliance for the Great Lakes highlights how hyperscale facilities often rely on water systems that draw from municipal supplies, raising concerns about long‑term sustainability in the region.
Such environmental considerations are prompting discussions on sustainable cooling technologies, more efficient water use, and regional planning frameworks. Community groups are also interested in ensuring data center growth coexists with farmland preservation, housing needs, and local quality of life.
How Columbus compares with other tech and data markets
Columbus’s burgeoning data center hub position places it among emerging tech infrastructure hotspots. Other regions, such as Northern Virginia, Dallas and Phoenix, have long dominated data infrastructure due to established markets and abundant power.
But central Ohio’s rise reflects broader shifts. The regional appeal — from connectivity to cost advantages — is drawing developers seeking alternatives to saturated markets. For example, Cleveland also ranks as one of Ohio’s fastest‑growing secondary data markets, complementing Columbus’s leadership.
Analysts argue that as data storage and processing demand continues — driven by cloud computing, AI workloads, and digital services — Ohio’s role in the national data center ecosystem will strengthen.
FAQs
What does it mean for Columbus to become a data center hub?
Becoming a data center hub means Columbus will host a large concentration of facilities that store and process digital data. These centers support cloud computing, artificial intelligence, and online services. The growth positions Columbus as a major regional technology infrastructure center.
Why is Columbus attracting so many data centers?
Columbus offers available land, strong fiber connectivity, and reliable electric power. The area also provides tax incentives and business-friendly policies. Its central Midwest location helps companies serve customers across multiple states efficiently.
How big is the data center market in Ohio right now?
Ohio already hosts more than 100 operational data centers. Dozens more are under construction or in planning. Columbus is projected to surpass New York City as the second-largest Great Lakes market.
Which companies are building data centers near Columbus?
Major technology firms including Amazon, Meta, and Google operate large data campuses in central Ohio. These companies continue to expand their facilities in and around the Columbus metro area.
How many jobs do data centers create?
Data centers generate thousands of construction jobs during development. Once operational, they require fewer permanent workers. Ohio has seen more than 20,000 construction jobs tied to data center projects.
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