Ohio data center bill would require voter approval for major projects

Two Republican state representatives have introduced legislation that would place new restrictions on the development of large-scale data centers in Ohio. 

House Bill 983, known as the Data Center Accountability and Citizen Protection Act, would require voter approval before major data center projects or expansions could move forward.

State Reps. Jennifer Gross of West Chester and Michelle Teska are sponsoring the bill. They argue that communities deserve a stronger voice when projects could affect electricity demand, water resources, land use, and local infrastructure.

“The communities need the right and they should have the voice to be able to tell their elected officials and have a choice as to whether data centers come to their backyard…Set standards for water qualities, so we know what the data centers are putting back into our water supply so we can protect our precious walleye and the people who fish them and it addresses NDAs,” Gross said in a report by FOX19. 

The proposal arrives as Ohio continues to attract major technology investments. According to multiple reports, Ohio ranks among the nation’s leading states for data center development. A massive data center campus planned in Pike County has drawn particular attention because developers have described it as the world’s largest proposed facility of its kind.

According to reporting by FOX19 and WKRC, supporters of the legislation believe growth is moving faster than many local residents can track. They say local voters should have a direct role in approving projects that could reshape their communities.

Residents and community groups have raised concerns about energy consumption, water use, noise, and tax incentives associated with large technology developments.

Also read: DeWine pauses data center tax breaks amid growing scrutiny in Ohio

Ohio data center bill adds new requirements

House Bill 983 includes several provisions that would significantly change how future projects are approved and operated.

The proposed legislation would:

• Require voter approval for large-scale data center construction and expansions.
• Ban future local tax incentives and tax abatements for qualifying projects.
• Require operators to provide or generate their own electricity.
• Establish environmental standards related to water use and water quality.
• Require disclosure of chemicals used in cooling systems.
• Limit confidentiality agreements that restrict public access to project information.

Supporters say the measures would increase transparency and protect local communities from unexpected costs. They also argue that residents often learn about major projects only after key decisions have already been made.

The legislation reflects growing concerns nationwide about the rapid expansion of data centers driven by cloud computing and artificial intelligence. Industry analysts have reported rising demand for electricity as technology companies build larger facilities to support AI applications.

According to the U.S. Department of Energy, data centers account for a growing share of electricity consumption across the country. Federal officials have warned that demand could continue increasing as AI adoption expands.

Industry groups, however, argue that data centers create jobs, support local tax bases, and strengthen digital infrastructure. They also note that many facilities already comply with environmental and utility regulations.

Ohio data center expansion draws national attention

Ohio’s emergence as a technology hub has attracted significant investment from major technology companies and developers. The state has become a desirable location because of its geographic position, power infrastructure, and available land.

The Pike County proposal has become a focal point in the debate. Supporters view the project as an economic development opportunity that could bring construction jobs and long-term investment. Critics worry about the scale of the facility and its potential impact on local resources.

According to FOX19, lawmakers backing House Bill 983 believe communities should have the final say on projects of that magnitude.

The issue extends beyond Pike County. Data center development has expanded in several regions across Ohio, including areas near Columbus, where multiple large facilities already operate or are under development.

Local governments often support such projects because they can attract investment and create construction employment. However, residents have increasingly questioned whether tax incentives and infrastructure demands outweigh the benefits.

The debate mirrors discussions occurring in other states. Communities across the country have sought greater oversight of large technology projects as concerns grow about power consumption and environmental impacts.

According to the U.S. Environmental Protection Agency, water and energy use remain important considerations for large industrial and technology facilities. State and local officials frequently evaluate those factors during the permitting process.

Federal lawmakers also propose data center oversight

The Ohio data center debate has also reached Washington.

U.S. Rep. Greg Landsman of Cincinnati has introduced federal legislation aimed at increasing oversight of data center development. According to FOX19, his proposals would require companies to bear more infrastructure costs and provide greater transparency regarding environmental impacts.

Landsman has also advocated for national standards addressing water consumption, carbon emissions, air pollution, and electronic waste associated with large facilities.

“One forces the data centers to pay for everything. There’s no reason our taxpayers should pay for anything of this. They have so much money. The second is getting rid of these NDAs. Everything should be done publicly. And the third, this most recent bill, requires there to be a national standard in terms of the environmental impact,” Landsman remarked. 

Supporters of federal action argue that consistent standards could help communities evaluate projects more effectively. They believe national guidelines would provide clearer expectations for both developers and local governments.

Technology industry representatives oppose additional regulations. The Data Center Coalition has warned that stricter requirements could discourage investment and reduce Ohio’s competitiveness compared with neighboring states.

Industry leaders argue that existing regulations already address many environmental and utility concerns. They also contend that increased restrictions could slow economic development and limit future technology investments.

The disagreement highlights the challenge facing policymakers. Ohio leaders want to attract high-paying technology jobs and infrastructure investment while also responding to concerns from residents and local governments.

Ohio data center debate likely to continue

House Bill 983 remains in the early stages of the legislative process. Lawmakers will review the proposal through committee hearings before it can advance further.

Supporters expect residents, environmental groups, local officials, and industry representatives to testify as the debate unfolds. The legislation could undergo significant changes before any final vote.

Several news organizations have reported on the proposal, including FOX19, WKRC, and Dayton 24/7 Now. Their reporting shows broad interest in how Ohio manages future technology development and balances economic growth with community concerns.

The outcome could influence future investment decisions across the state. It may also determine how much authority local voters have over major technology projects.

For Cincinnati-area residents, the debate offers a preview of broader discussions about infrastructure, economic development, and local control. As artificial intelligence and cloud computing continue driving demand for new facilities, policymakers face increasing pressure to establish clear rules for future growth.

Whether House Bill 983 advances or stalls, lawmakers have signaled that oversight of large-scale data center development will remain a major policy issue in Ohio.