An Ohio gubernatorial candidate has unveiled a proposal that would require future data center developments to provide free electricity to nearby homeowners as a condition of being built in the state.
The proposal, described as an “Ohioans-First” data center policy, would require every new data center project to meet three conditions before receiving approval:
- Residents living within a designated “benefit zone” would pay nothing for their household electricity.
- Homeowners would receive property tax relief funded by the data centers paying full property taxes without abatements.
- Data centers would be required to comply with all air and water quality regulations while minimizing impacts on Ohio farmland.
According to the proposal, no new data center would be allowed to move forward unless all three requirements are met.
Free Electricity Through Excess Power
The centerpiece of the plan focuses on using excess electricity generated by power plants built alongside data centers.
Under the proposal, a data center could construct its own natural gas or nuclear power plant. After supplying electricity to the facility, any unused power would be directed to the electric grid and credited toward residential electric bills within a designated radius.
The candidate said this system could eliminate electric bills for thousands of nearby households.
As an example, the proposal states that if a 1,000-megawatt power plant supplies 700 megawatts to a data center, the remaining 300 megawatts could be enough to offset electricity costs for much of the surrounding community. Even 100 megawatts, the proposal claims, could power between 75,000 and 100,000 homes.
Rather than receiving a discount, qualifying residents would see their electric costs reduced to zero through utility bill credits or direct reimbursement from the data center.
Property Tax Changes
The proposal also calls for ending future property tax abatements for data centers.
Instead, new facilities would pay their full property tax obligations, with those revenues directed toward rebates for homeowners living within the benefit zone. The proposal argues this would provide tax relief without reducing funding for schools, fire departments, or local governments.
Environmental Requirements
The plan would also require future data centers to recycle and reuse water using the best available technology, return discharged water at the same quality it was withdrawn, and prioritize redevelopment of former industrial sites over productive farmland.
Temporary Halt on New Projects
If elected, the candidate said an executive order would be issued on the first day in office to temporarily pause approvals of new data center projects until the proposed legislation establishing the policy is enacted.
The proposal comes as Ohio continues to experience rapid growth in data center development, with concerns from some residents over increasing electricity demand, tax incentives, land use, and environmental impacts. The candidate said the goal is to balance economic development and high-paying construction jobs with direct benefits for Ohio homeowners.
