Ohio lawmakers have advanced legislation to regulate data centers, but critics say it doesn’t go far enough. The measure, Substitute House Bill 646, is the result of weeks of testimony from tech companies, utility companies, and the public as lawmakers study the rapid growth of data centers.

Local Concerns

In Adams County, where data centers are being considered near Manchester, neighbors are worried about the environmental impact of data centers and want them to be paused until safeguards are in place. Danielle Kinhalt, with Conserve Ohio, expressed concerns about the lack of protection for small, rural, and zoned communities.

The bill would cut sales and property tax exemptions for data centers in half and add guardrails to prevent Ohioans from paying more for electricity. It also sets new standards for water use, including reporting, conservation, and quality.

Criticism and Next Steps

Critics of the bill, such as Policy Matters Ohio, argue that more needs to be done, including eliminating tax incentives entirely. The group also points out that the bill doesn’t address the $1.5 billion in existing tax breaks for companies like Amazon, Google, and Meta.

The chair of Ohio’s Senate Energy Committee says the proposal is just the first step, and there will be more consideration and more legislation to come. Conserve Ohio members are trying to ban large data centers through a constitutional amendment, having collected 60,000 signatures so far, but need 413,000 to get the issue on the November ballot.

Original reporting: WLWT Cincinnati — read the source article.