Data centers shouldn’t just pay for their own electric bills. They should pay for yours if you live nearby, Republican gubernatorial candidate Vivek Ramaswamy announced on Aug. 6.
If elected, Ramaswamy pledged to ban new data centers if they can’t:
“If any one of these three conditions is not met, the data center won’t be built. Period,” Ramaswamy wrote. Ramaswamy previously said that banning data centers would be “a terrible idea.”
Ohioans have become increasingly frustrated with the proliferation of data centers across the state. They’re not alone: Seven in 10 Americans oppose constructing data centers for artificial intelligence in their local area, according to a recent Gallup survey.
“I don’t know if I’ve seen an issue get so politically toxic in such a rapid period of time,” said Greg Lawson, senior research fellow at The Buckeye Institute, a right-leaning think tank that’s been supportive of data centers.
Pressure mounts from data center opponents
A campaign to ban most data centers is collecting signatures to make the November 2027 ballot. Allaying their concerns will fall to Ohio’s next governor, but organizer Jessica Baker, of Clermont County, isn’t impressed with either gubernatorial candidate’s plan.
“There’s so many issues with data centers that neither one of them are touching on everything that needs to be addressed,” Baker said.
Ramaswamy promised to sign an executive order to halt new data centers on his first day in office, then work with lawmakers to put the requirements in state law.
In June, Ohio lawmakers failed to act on an overhaul of data centers after they couldn’t agree on tax breaks. The Ohio Senate planned to reduce a sales tax exemption for data center projects, which cost the state nearly $1.6 billion last year. However, some Ohio House lawmakers wanted to go further and eliminate the tax break altogether.
Still, Ramaswamy feels confident that he can negotiate with lawmakers and data center leaders to bring electric bill and property tax breaks to Ohio.
“If Ohio’s governor sets this as a clear requirement and negotiates accordingly, I am confident that hyperscalers would be willing to fully cover the cost of power for Ohioans who reside near a data center,” Ramaswamy wrote in a Columbus Dispatch op-ed. “That requires the acumen of a businessman, not a bureaucrat, at the top.”
Lawson said having data centers pay for neighbors’ electric bills is an “innovative idea.” Policies that provide incentives to residents and local communities to allow data centers to build nearby can benefit all sides, he said.
But Baker said she’s not interested in a lower electric bill if she’s still living next to 100 gas turbines or 500 diesel generators. And Ohioans have lost faith in data center leaders and politicians to work in their best interest on this topic.
“Every single piece of every data center seems like it’s backhand, secret deals,” she said.
A spokesperson for Ramaswamy’s Democratic opponent, Dr. Amy Acton, called Ramaswamy’s new proposals a “scam policy” meant to distract from his support of data centers. “His ‘plan’ would allow data centers to continue flooding into Ohio with out-of-control tax breaks and secret NDAs,” Acton spokesperson Addie Bullock said.
What is Amy Acton’s plan for data centers?
On July 27, Ramaswamy’s Democratic opponent, Dr. Amy Acton, pledged a “conditional moratorium” on new data centers unless they covered their own utility costs, used 100% union labor and built on brownfields, not farmland. Acton also wants to ban non-disclosure agreements when negotiating these deals.
“If you do not meet these conditions, we do not want you in Ohio,” Acton said in a statement.
Lawson said it makes sense to build data centers on brownfields, “but we would be very skittish about saying they can only be on those sites.” While many farmers don’t want data centers on their land, some do.
“We generally, and in America writ large, like people being able to do what they want to do with their properties,” Lawson said.
What is Ohio already doing?
In May, Gov. Mike DeWine announced a pause on new tax exemptions for data centers. On Aug. 5, DeWine said that would extend through the end of his term.
“Then it’ll be up to the next governor what to do about that,” DeWine said at the Ohio State Fair.
DeWine said the best approach is for local leaders to negotiate aggressively with data centers to get the best deal for their communities. “They should not just take whatever deal’s offered,” he said.
This article was updated to include a quote from Dr. Amy Acton’s campaign.
State government reporter Jessie Balmert can be reached at jbalmert@usatodayco.com or @jbalmert on X.
What do you think of Ramaswamy and Acton’s plans on data centers?
This article originally appeared on The Columbus Dispatch: Ramaswamy wants data centers to pay Ohioans’ electric bills
Reporting by Jessie Balmert, Columbus Dispatch / The Columbus Dispatch
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By Jessie Balmert, Columbus Dispatch | USA TODAY Network
