A study commission will have six months to make recommendations on data center regulations in Ohio, under a proposal that’s moving forward in the state legislature. 

The Ohio House Technology and Innovation Committee voted Tuesday to advance House Bill 646. 

The bill would create the Data Center Study Commission, a panel of 13 people that would study the impact data centers have on the environment, electricity prices, local quality of life and the economy, among other issues. Lawmakers would appoint most members of the commission, the governor would appoint the rest. 

The proposal comes as Ohio has seen a surge in large-scale data center development, fueled by tax incentives and the state’s relatively low electricity costs. But the accelerating expansion has sparked backlash in some communities, where residents have raised concerns about the loss of farmland, the strain on power grids, water usage and long-term economic benefits.

Rep. Gary Click, the bill’s sponsor, said data center operators back his legislation, believing it will give them a chance to make their case to the public. He also said he thinks the commission could serve as a resource for local governments and others dealing with data center proposals.

The commission will be required to issue a report that could include potential law changes.

Click, a Sandusky County Republican, said his bill originally included a six-month pause on all data center projects statewide, but he decided to drop that requirement to ensure the proposed law would move forward.

Creating a commission to study a hot-button topic can be a classic legislative maneuver to slow an issue down. But Click said his proposal is meant to deal with data centers quickly, hence the six-month deadline. 

Click said opposition to data centers ranges from legitimate policy questions to conspiracy theories. He hopes the commission can separate fact from fiction and help officials make more informed decisions.

“This is to get something done,” Click said. “People on both sides of the issue want this.”

The committee approved HB 646 in a 9-3 vote with all five Republicans voting “yes” and three of four committee Democrats voting against it. 

Fast-tracked committee process attracts support, criticism

The bill has sped through the House since Click and co-sponsor Rep. Kellie Deeter, a Norwalk Republican, introduced it a few weeks ago. 

One packed hearing with multiple speakers showed how the proliferation of data centers in Ohio has become a contentious political issue. Among the bill critics who testified were Eric Watson, Click’s opponent in the May primary election, and Kim Georgeton, the running mate for longshot Republican governor candidate Casey Putsch. Some of them accused the legislature of failing to act more aggressively to rein in data centers.

No organizations have registered their formal opposition to the bill. 

One supporter is the Ohio Farm Bureau, which has raised concerns about the impacts unchecked data center development could have on agricultural farmland and water quality. 

“The absence of a robust regulatory framework and long-term planning may lead to unforeseen repercussions,” said Farm Bureau lobbyist Evan Callicoat during a Feb. 24 committee hearing.

The Data Center Coalition, a trade group that represents the data center industry, is publicly neutral on the bill. In written testimony, Daniel Diorio, the group’s vice president of state policy, said his organization “appreciates the goals” of the legislation.

“As the Committee evaluates HB 646 and considers the Commission’s scope of work, DCC welcomes ongoing dialogue and the opportunity to provide technical and policy context on issues relevant to Ohio’s competitiveness and the operational characteristics of modern data center facilities,” Diorio said.

What’s next for the bill?

Tuesday’s committee vote sends HB 646 to the full House for approval. Click said he’s gotten positive feedback from House GOP leaders and expects the final House vote to happen soon.

If the House approves the bill, it would head to the Senate for consideration. After that, it would go to Gov. Mike DeWine’s desk for his signature.