Ohio Among Leaders in Construction of Information Facilities
Heading into November’s midterm elections, the political divide wasn’t necessarily whether you were Democrat or Republican but more along the dividing line of whether you were pro- or anti- data centers.
In September 2026, according to market intelligence company Cleanview, more than 1,300 data centers were operating in the U.S. – with more than 2,200 others being constructed or planned for construction. Cleanview specializes in tracking the nation’s development of power and data facilities.
As Ohio is known for being “The Heart of it All” due to its geographic location making it both a transportation and commerce hub, the state is also becoming a home for data hubs. According to Data Center Geeks, as of August 2026, Ohio ranked among the top five states in the nation for data centers with 240 – trailing only Virginia (651), Texas (513), California (296) and Georgia (274).
A data center is a facility housing a centralized network of computers, servers and information storage. These large warehouse-looking facilities typically contain rows of computer servers, data storage systems and networking equipment, along with the power and cooling infrastructure needed to operate them. The number of data centers is increasing with growing use of digital technology, as every action – from movie streaming, sending emails, online shopping, training artificial intelligence models and more – relies on data center operations.
With many more data centers being planned for construction – which according to the Office of Ohio’s Consumers’ Counsel could be an additional 80 coming to the state by 2030 – the state’s construction industry is joining economic development groups, chambers of commerce, policymakers, professional services, technology companies and others leaning toward the pro-data center sector.
Ohio leads the nation when it comes to data center-related ballot measures in the 2026 elections. While California, Florida, Illinois, Kansas, Michigan, Nevada and Wisconsin also are combining in the 38 ballot initiatives this year, Ohio will have 20 measures for voters to decide in November’s midterm elections.
In June, Ohio’s Business Roundtable released “Data Centers in Ohio, Fact vs. Fiction” to dispel claims from current-day NIMBY (not in my backyard) groups that “data centers consume staggering amounts of water, drive up residential electric bills, create few jobs, benefit from tax giveaways at residents’ expense” and more.
Founded in 1992, the Ohio Business Roundtable’s mission is to improve the state’s business climate. A nonpartisan, nonprofit advocacy group, the Roundtable works with Ohio’s legislative leaders to make the state more business friendly and competitive nationally and internationally by addressing economic challenges and implementing policies to strengthen competitiveness. The organization consists of more than 120 company presidents/CEOs – of which more than one-third lead Fortune 1000 companies. (For more information, visit the group’s website at www.ohiobrt.com.)
The Data Centers in Ohio, Fact vs. Fiction study looks at claims in eight areas that fuel the anti- and pro-data center debate: Jobs, Water, Energy, Property Tax & Abatements, School Districts, Sales Tax Incentives, Noise and Economic Impact.
Here is a look at each area’s “claims” and “facts” according to the report:
JOBS
Claim: Data centers don’t create jobs
Facts: The physical footprint of a data center is anywhere from 200,000 to 500,000 square feet. According to the report, a 250,000 square-foot data center requires 1,500-2,000 construction workers over the 12- to 18-month building period. Once online, data centers require an operating staff of 25-50 full-time employees and an additional staff of 25-50 people providing security and maintenance.
In addition, data center servers are on a 5- to 6-year replacement cycle, which “regenerates” construction work throughout the facility’s existence.
From 2016-2023, employment at Ohio data centers grew 70.5% – which was faster than the national rate of 60%. Forecasts show that the national employment in the areas of computing infrastructure providers, data processing, web hosting and related services will grow another 20.3% by 2034. A Great Lakes Data Center study by the University of Virginia estimates “Ohio data centers will add $4.7 billion in GDP and 37,200 jobs by 2030.
WATER
Claim: Data centers consume millions of gallons of water per day and dump waste into nearby watersheds
Facts: The days of high-water use as a result of evaporative cooling used in data center designs are going to the wayside, as the broader industry is shifting to “closed-loop” and “direct-to-chip” liquid cooling methods. Microsoft, which operates more than 500 data centers across the world, has committed to going to a “zero-water evaporative closed-loop design” of its data centers by 2030.
Closed-loop data centers and other water-saving efforts are already planned and being used in Ohio. While data center adversaries claim multi-million gallon-per-day water usage, a 400,000-sf data center planned for New Albany will operate – after initial setup – on 30,000 gallons a day for restroom and kitchen use – which is comparable to the daily use of a fast-food restaurant. Recycled water programs for Ohio’s data centers are already being advanced as part of a statewide effort. Also, this year in Ohio, two state representatives introduced legislation tracking data center water usage.
DATA ON DATA CENTERS
- The U.S. is home to nearly 40% of the world’s data centers. Other nations among global leaders in data centers are: 2. United Kingdom, 3. Germany, 4. France and 5. China.
- The first data center in the U.S. dates to 1945 with the Electronic Numerical Integrator and Computer (ENIAC) at the University of Pennsylvania in Philadelphia. Ohio’s first “data center” is believed to have been in the mid-1960s with the invention of a prototype air conditioner to regulate temperature/humidity for early IBM computing facilities.
- With the size being compared to a large big-box retail store, the average U.S. data center site is 225 acres, while “hyperscale facilities” can be on 1,000 acres or more.
- Since 2020 nearly half (46%) of private office construction in the U.S. has been for data centers.
Regarding the claim of data center waste dumping in watersheds, “most onsite cooling water is potable (i.e. safe for drinking) and recirculates through the loop; there is no industrial discharge stream comparable to chemical manufacturing and food processing.”
ENERGY
Claim: Data centers are driving up electricity bills for Ohio residents and putting the cost of new generation onto everyday ratepayers.
Facts: While data centers are large electricity users – as Ohio’s data center demand is projected to double (5.3% to 11% of state demand) by 2030 – state and national initiatives would help shield residents and everyday ratepayers from rising energy costs.
In Ohio, the Public Utilities Commission of Ohio (PUCO) approved the AEP Ohio Data Center Tariff in July 2025, which requires data centers using more than 25 megawatts of electricity “to pay for 85% of contracted capacity for 12 years even if they use less.” In addition, “exit penalties” equal to three years of minimum charges have also been implemented for data center owners as additional ways to protect residential ratepayers.
At the national level, the White House Ratepayer Protection Pledge was implemented this March, which requires “hyperscalers” (large-scale cloud service providers) and AI companies to “build, bring or buy the energy they need” in order to protect American consumers from price hikes attributed to data center infrastructure.
PROPERTY TAX & ABATEMENTS
Claim: Data centers don’t pay property taxes – they receive 100% abatements that shift the tax burden onto residents.
Facts: Real estate taxes on land cannot be deducted in Ohio. Land under data centers pay from Day 1 and continues to being paid for – even if there is an allowance in building taxes. during a building tax abatement. Data center buildings in central Ohio are appraised upwards of 375% more than the typical industrial or manufacturing building. The report also points out that “Ohio’s agricultural land is taxed far below market value” in the Current Agricultural Use program.
SCHOOL DISTRICTS
Claim: Data centers strain school districts and starve them of revenue.
Facts: The claim that data centers increase housing demand and headcount in school districts is unfounded, as data centers have low employment headcount per square foot. So, they do not produce the housing demand or enrollment growth that residential development or manufacturing development does. All revenue flowing in from data centers to schools is without offsetting costs.
Data centers are also proving to be good stewards, as owners are funding direct school programming – such as science, technology, engineering and mathematics (STEM) events, Space Nights and other certification pathway programs.
SALES TAX INCENTIVES
Claim: Ohio’s data center sales tax exemption is an unjustified $141 million-per-year giveaway. Without exemption, the data centers would still come.
Facts: Attracting data centers to a state or region is competitive. While Ohio is one of 36 states having a data center sales tax exemption, it is one of only a few where it is not automatic. For an Ohio data center developer to qualify for a tax exemption, it must work with local economic development officials and JobsOhio prior to applying to the Ohio Tax Credit Authority. The Ohio Tax Credit Authority’s decision on whether a data center project receives full, partial or no exemption is determined through Ohio Department of Development guidance.
It is ill-advised to believe data centers would continue to call Ohio home if the state did not provide tax incentives. Without exemptions, recurring property and income taxes, payment in lieu of taxes (PILOT), New Community Authorities (NCA) charges and payroll revenue would not benefit Ohioans due to future projects going to other states.
NOISE
Claim: Data centers are loud industrial sites that disturb neighborhoods at all hours.
Facts: Noise levels from data centers range from 60 decibels – about the sound level of normal conversation or a window air conditioner – to 90 decibels – the sound level of a gas-powered lawnmower or hairdryer. The high-end sound level of a data center can be traced usually to facilities built prior to updated noise mitigation actions that include equipment-level acoustic treatment and within modern Ohio zoning and design reviews.
Ohio communities are building noise mitigation into their zoning approvals for data centers. So, many data center noise complaints “typically stem from absent or weak local ordinances – not from the technology itself.”
ECONOMIC IMPACT
Claim: Data centers create no real economic value. They take farmland, drain utilities and leave little behind for the community.
Facts: In a little more than a decade, Amazon Web Services (AWS) has invested nearly $40 billion into Ohio through data center construction and operations – including almost $17 billion more than it initially committed. In one county alone, the AWS venture has meant a $4.1 billion total investment that has resulted in $645 million in GDP contributions and more than 2,350 full-time jobs. In addition to communities having the ability to capture revenue beyond conventional property tax (see sales tax incentive section), data centers “catalyze” further development and can bring utility and road infrastructure investments benefiting subsequent projects in the same corridor.
Often overlooked is the level of recurring revenue from construction income tax, as the city collects municipal income tax on those wages.
NATIONAL SECURITY, AI RACE & LOCATION, LOCATION, LOCATION
In addition to the eight claims in its report, the Ohio Business Roundtable looks at how the state can play a role in the nation’s AI race and the importance of having data centers within the state’s boundaries.
When it comes to national security and the global AI race, data centers serve as “the physical backbone of artificial intelligence,” according to the Data Centers In Ohio, Fact vs. Fiction report. With AI expansion having such a critical role in the nation’s competitive race with China, “Ohio sits at the center of this national footprint as a leader in data center investment.” The Roundtable report also warns that any disruptions to Ohio’s future decisions regarding data centers “directly affects whether America wins the AI race, and whether Ohio is on the inside of that race or outside of it.”
When it comes to AI and “cloud economy,” location matters. According to the Ohio Business Roundtable report: “… Physical proximity to data centers is itself an economic asset.” Latency – which is the time it takes, usually measured in milliseconds, between a user’s action and a system’s response – is critical in AI computing. Companies are relocating their headquarters, research and development and digital operations near “clusters” of data centers to decrease what is referred to as the “latency penalty.”
According to the Roundtable report: “The data centers Ohio has attracted are not a self-contained economic prize; they are the substrate on which the next generation of Ohio’s broader corporate growth will be built.”
When it comes to the state being at the heart of it all with its growing inventory of data centers, the Ohio Business Roundtable writes:
“Ohio is not at a crossroads – it is at a launching pad. The infrastructure, the investment and the momentum are already here. The only question now is how much of the future Ohio is ready to claim.”
The good news for Ohio construction workers is that the demand is there. However, the bad news for the state’s construction companies is that the number of workers they need isn’t.
Statistically, Ohio should be in a good spot in meeting the current demands of the largest road construction program in history and the current data center boom.
As:
- Data from the U.S. Bureau of Labor Statistics shows that Ohio has traditionally been among the top states in number of construction industry workers.
Coupled with:
- The Associated General Contractors of America (AGC) reports that Ohio ranked third nationally for year-over-year job growth for construction workers from April 2025-April 2026.
Still, Ohio needs skilled trades workers. The state’s heavy/highway construction industry faces an estimated shortage of 14,000 skilled workers – with many estimates being much higher. Additionally, projections show a need for tens of thousands of skilled workers are needed to build the 80 to 100 data centers planned for construction in Ohio through 2032.