Analysis: Lack of data center regulation could cost Ohioans billions

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(The Center Square) – Failing to regulate data centers could cost Ohioans billions of dollars in higher electricity cost and air pollution, according to a new analysis.

The study by Columbus-based analytic firm Scioto Analysis estimates that without regulations Ohioans would end up spending $16 billion more in electric bills and would suffer $41 billion in air pollution damage.

The analysis estimates that under current policies, data center growth could cost Ohio electricity customers $16 billion in higher utility costs between 2027 and 2034. Meanwhile, Ohio's data center sales and use tax exemption cost the state an estimated $1.6 billion in revenue in 2025.

“We are watching a financial crisis develop in real time, and the Ohio Statehouse is failing to respond," said State Rep. Tristan Rader, D-Lakewood. "We have allowed some of the wealthiest corporations on Earth to receive billions in tax breaks while Ohio families face the prospect of billions more in electricity costs. At this point, our continued inaction isn't just disappointing – it's irresponsible."

 Rader is working on legislation that he says would reconsider Ohio’s “generous” tax exemptions for data centers and establish long-term financial commitments and safeguards protecting existing customers.

“Ohio families should not be the venture capitalists for Silicon Valley's expansion,” the legislator said. “We don't get a share of their profits, and we shouldn't be handed their bills. The Statehouse needs to act before those bills come due."

According to the tracking group Data Center Map, Ohio has 240 data centers.

Another study, by the Goldwater Institute, downplays the threat from data centers,

“The bigger problem is an electricity system that hides scarcity from consumers until strain appears as congestion, reliability risks, or higher costs,” the institute said.

Higher prices would lead to higher efficiency, according to the Institute.

“When millions of consumers face fixed prices, demand remains high precisely when the system is under the most pressure, the institute concluded.