Introduction
Data centers in Ohio are rapidly transforming the state’s construction landscape, creating unprecedented opportunities and challenges for contractors, policymakers, and local communities. This article focuses on the evolving data center ecosystem in Ohio, with a special emphasis on the newly formed Joint Data Center Committee and its potential impact on construction opportunities, policy decisions, and local economies. The primary audience for this guide is ABC Ohio Valley contractors, firms, and professionals who need to understand how these developments will affect their businesses, workforce, and project pipelines. As Ohio becomes a national leader in data center growth, understanding the scope, operational challenges, and community concerns is essential for anyone involved in the construction and maintenance of these critical facilities.
A data center is a facility that houses computer systems and associated components, such as telecommunications and storage systems. Data centers in Ohio provide a broad spectrum of services, including colocation, cloud infrastructure, and disaster recovery. Facilities in Ohio generally adhere to Tier III standards with robust redundancy, designed to support high-density compute needs. Ohio’s data center ecosystem includes both hyperscale facilities built by global tech companies and multi-tenant colocation facilities for enterprise businesses.
Key Takeaways
- On May 13, 2026, state leaders announced the bipartisan Ohio Joint Data Center Committee; its first hearing is on May 27 at the Statehouse.
- Roughly 200 data centers already operate in Ohio, nearly half in the Columbus area; another count puts Ohio at 217 data centers, ranking it fifth in the U.S., while other rankings place Ohio sixth.
- More than $2.5 billion in avoided taxes flowed to data center projects from 2017 to 2024, while data centers in Ohio generated more than $3.7 billion in economic activity.
- HB 706, SB 378, HB 646, and related bills will reshape utility agreements, water and sewer costs, incentives, site selection, and project timing.
- ABC Ohio Valley members should engage ABC of Ohio advocacy tools now, not after rules are left unchanged or finalized.
Economic Impact, Operational Challenges, and Community Concerns
Ohio is home to 217 data centers, ranking it fifth in the U.S. for data centers, a number that has contributed significantly to the state’s economy. Data centers in Ohio have generated more than $3.7 billion in economic activity from 2017 through 2024, benefiting local economies and communities. In 2024, Google data centers alone contributed $19.2 billion in economic activity for Ohio businesses, nonprofits, and creators, showcasing the substantial economic impact of data centers in the state.
However, the rapid growth of data centers has increased power demand, straining the electric grid and driving up electricity prices for consumers in Ohio. In 2023, data centers accounted for 1.58% of Ohio’s electricity usage, prompting utilities to invest billions in upgrading power grids to meet growing demand. Data centers in Ohio are extremely energy- and water-intensive, often requiring significant infrastructure investments to meet their high electricity demands.
Community backlash against data center projects in Ohio has been fueled by rising electricity prices and concerns over the strain on local electric grids, with some residents fearing the long-term implications for their utility costs. These operational challenges and community concerns are shaping the policy landscape and influencing how new projects are planned and executed.
With these economic, operational, and community factors in mind, it’s crucial to explore why this moment is so important for contractors and how state policy is evolving to address these challenges.
Why Ohio’s Data Center Moment Demands Contractors’ Attention Now
Ohio’s Data Center Growth Drivers
Ohio has a rapidly expanding tech ecosystem with significant commitments from major technology firms, driven by artificial intelligence, cloud demand, colocation, disaster recovery, and direct low-latency connectivity to AWS, Azure, and Google Cloud. In 2023, data centers accounted for 1.58% of Ohio’s electricity usage; nationwide, data centers used 4.4% of all U.S. electricity, more than double their 2018 share. That rapid growth is straining power systems, contributing to rising electricity prices, and putting state actions on the front pages of local news across central and western Ohio.
As we transition from these growth drivers, it’s important to understand the types of data centers operating in Ohio and their unique characteristics.
Ohio’s Data Center Landscape: Scale, Locations, and Incentives
Types of Data Centers in Ohio
A data center is a facility that houses computer systems and associated components, such as telecommunications and storage systems. Ohio’s data center ecosystem includes hyperscale facilities built by global tech companies and multi-tenant colocation facilities for enterprise businesses. Hyperscale data centers are massive, purpose-built facilities designed to support the operations of a single large company, often a global tech giant. In contrast, colocation facilities are multi-tenant environments where multiple businesses can rent space, power, and connectivity for their IT infrastructure.
Data centers in Ohio provide a broad spectrum of services, including colocation, cloud infrastructure, and disaster recovery. Facilities in Ohio generally adhere to Tier III standards with robust redundancy, designed to support high-density compute needs.
Major Locations and Site Selection
Ohio’s advantages are real: affordable land, low natural-disaster risk, aggressive tax exemptions, minimal coastal-market disruption, a highly stable power grid, and a robust 765 kVA transmission system. Ohio passed laws encouraging data center projects, including a sales tax exemption on computer equipment, which generated $2.5 billion in avoided taxes from 2017 through 2024. In 2024, Google data centers alone contributed $19.2 billion in economic activity for Ohio businesses, nonprofits, and creators.
Recognizable locations include New Albany, Lancaster, downtown Columbus, Cleveland, and emerging interest near Lima, Wilmington, Asheville, and I-70/I-75. Developers now use Google Maps and utility data to map proximity to power, water, fiber connectivity, and workforce.
With this landscape in mind, it’s important to understand how state policy is evolving to address the challenges and opportunities presented by data centers.
The Ohio Joint Data Center Committee: Who’s on It and What It Will Study
According to the Ohio Senate announcement, the committee is co-chaired by Sen. Brian Chavez of Marietta and Rep. Adam Holmes of Nashport. Members include Rep. Thad Claggett of Licking County, Rep. Heidi Workman of Rootstown, Rep. Chris Glassburn of North Olmsted, Sen. Bill Reineke of Tiffin, Sen. Shane Wilkin of Hillsboro, and Sen. Willis E. Blackshear Jr. of Dayton.
Its fact-finding mission is to study the economic, environmental, and national security implications, then provide reliable statewide information to local officials and concerned citizens. That means decisions affect everyday Ohioans, electricity customers, developers, utilities, and contractors.
As the committee begins its work, several key concerns are emerging that will shape the future of data center development in Ohio.
Key Concerns on the Table: Power, Land, Water, and National Security
Power and Infrastructure Demands
Hyperscale campuses can draw as much electricity as a small city. Data centers in Ohio are extremely energy- and water-intensive, often requiring significant infrastructure investments to meet their high electricity demands. The Public Utilities Commission of Ohio approved a new rule requiring data center operators to sign contracts agreeing to purchase a minimum amount of electricity for a certain number of years to mitigate risks for utilities.
Community and Environmental Concerns
The committee will also examine agricultural land conversion, facilities, environmental impact, noise, water consumption and disposal, national security, and community concerns. Jerome Township residents raised concerns about noise and property values, leading to a moratorium on new projects until January 2026. In Preble County, residents opposed a proposed data center over water use, electricity rates, and agricultural character; the developer withdrew the rezoning application. These packed public meetings show how data centers are shaping life in host communities.
As these concerns are debated, legislation is being introduced to address the evolving needs of the industry and the communities it impacts.
Active Ohio Legislation Targeting Data Centers and Utilities
HB 706, referred to the House Energy Committee, would tighten requirements on data center agreements with electric utilities and prevent costs from being unfairly shifted to other customers. SB 378, in the Senate Public Utilities Committee, would make facilities responsible for the water and sewer infrastructure costs they create. HB 646, which passed the House, would create a separate Data Center Study Commission.
Together, these bills could change how owners pay for substations, transmission, mains, pump stations, treatment capacity, and service extensions.
As legislative efforts continue, Ohio Senate Democrats have introduced a comprehensive package of bills to further regulate the industry.
Ohio Senate Democrats’ 2026 Data Center Bill Package
The Senate Democratic package includes the Data Center Grid Cost Responsibility Act, Data Center Tax Break Bill, Powering Ohio Communities Act, Local Development Protection Act, a home-rule resolution, Ohio Power Reliability and Fairness Act, and Responsible Water Use in Data Centers Act. Not every bill will pass, but the package shows state government pressure to rebalance investment, costs, permanent jobs, tax breaks, and community risk.
With these legislative changes on the horizon, the landscape for new mega-campuses and their supply chains is also evolving.
Active and Proposed Mega-Campuses Reshaping the Ohio Valley Market
The SoftBank–Stargate joint venture campus in Lordstown is expected to be operational in 2026 on the former GM site. The proposed Southern Ohio Data Center campus at the former Portsmouth Gaseous Diffusion Plant in Pike County has been described as a 10-gigawatt, AI-ready site with more than $60 billion in combined investment and up to 35,000 construction jobs at peak.
These locations sit outside many core ABC Ohio Valley markets, but their supply chains, electrical scopes, mechanical systems, civil packages, and data hall fit-out work will reach Cincinnati, Dayton, Springfield, Lima, Northern Kentucky, and Southeastern Indiana.
As these mega-projects take shape, contractors must consider how policy and infrastructure changes will affect site selection and project feasibility.
Implications for Site Selection, Utilities, and Project Feasibility
If policy changes increase up-front utility and sewer costs, new projects may move toward locations with existing industrial infrastructure. That could accelerate or delay the start of construction across the Cincinnati–Dayton–Springfield–Lima corridor. Contractors should price contingencies for off-site infrastructure, changing utility requirements, permitting delays, and local opposition.
Understanding these implications, merit shop contractors have a unique opportunity to position themselves as leaders in this evolving market.
What This Means for Merit Shop Contractors in the Ohio Valley
This is a merit shop moment. Owners will seek firms with safety records, QA/QC systems, mission-critical experience, and the ability to explain technical issues in public hearings. ABC Ohio Valley members can support communities, control costs, and protect open competition while helping data center owners move from plans to notice to proceed.
To meet these demands, workforce readiness and specialized training are more important than ever.
Workforce Readiness: Apprenticeship Pipelines and the Nine Key Trades
The nine key trades are:
- Carpentry
- Craft Labor
- Electrical
- HVAC
- Pipefitting
- Plumbing
- Roofing
- Sheet Metal
- Sprinkler Fitter
ABC Ohio Valley apprenticeship and training programs help contractors build the workforce needed for phased campuses, tight commissioning windows, and high-density facilities.
As workforce demands grow, safety and quality control remain top priorities for successful data center projects.
Safety, Mission-Critical Expectations, and Quality Control
Data centers are always-on assets. Strong STEP participation, jobsite audits, safety leadership, prefabrication checks, commissioning discipline, and documentation reduce rework, protect power-on dates, and help firms win repeat work.
To ensure contractors’ voices are heard, active advocacy is essential as state rules and regulations are developed.
ABC Advocacy: Shaping State Actions Instead of Reacting to Them
ABC of Ohio and ABC Ohio Valley are tracking the committee, HB 706, SB 378, HB 646, and the broader Senate package. Use the ABC Action App, alerts, and testimony opportunities to explain how policy choices affect feasibility, jobs, service reliability, open competition, and electricity prices.
For verifying state signals, follow state government sources, not only a free weekly newsletter or local news. A politics reporter with a journalism degree from Otterbein University who has covered politics may add perspective, but contractors need primary-source support.
ABC Ohio Valley stands ready to help members prepare for the evolving data center market.
How ABC Ohio Valley Can Help Members Prepare for Data Center Work
ABC Ohio Valley can help members assess training, safety, prequalification, partnerships, and capacity planning. Contact chapter leadership for project preparation support and to align apprenticeship, safety, and business development strategies with the emerging data center pipeline.
Conclusion: The Next 12 Months Will Set the Rules of Engagement
The next 12–18 months will define how data centers in Ohio are built, served, financed, and contested. For ABC Ohio Valley contractors, this is one of the largest construction opportunities in state history, but the rules around power, water, incentives, and risk are being written now. Track the committee, watch the bills, and engage ABC advocacy channels to protect merit shop access.
FAQ
How soon will the committee affect real projects?
Immediately. Even before final recommendations are issued, utilities, developers, and local governments will treat hearings as political and regulatory signals.
Are data center projects likely to favor union or merit shop firms?
Owners generally prioritize safety, schedule, cost certainty, and experience. ABC’s role is to protect open competition so qualified merit shop firms can compete.
Can smaller firms participate?
Yes. Site work, concrete, steel, roofing, fire protection, low-voltage systems, equipment pads, utility extensions, and interior fit-out all create entry points.
What should estimators change now?
Add allowances for evolving utility requirements, off-site infrastructure, water and sewer obligations, equipment escalation, and schedule impacts.
What if my company has no prior data center experience?
Start with safety upgrades, QA/QC systems, apprenticeship enrollment, and partnerships on smaller scopes tied to Ohio data centers.
