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Inside Central Ohio's data center boom
Inside Central Ohio's data center boom

Axios

time30-04-2025

  • Business
  • Axios

Inside Central Ohio's data center boom

The Midwest is emerging as one of the nation's fastest-growing data center hubs, a complex trend the Columbus area helped kick off about a decade ago. Why it matters: Data centers power the AI boom — but their soaring energy and water demands often go unreported, with unclear benefits for local communities and few permanent jobs created. Data centers used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, per the Department of Energy. Data center construction is at an all-time high, increasing 69% year-over-year from 2023-2024, per CBRE, a commercial real estate firm. State of play: With Chicago and Columbus' energy capacities tapping out, companies are increasingly eyeing secondary markets such as Minnesota, Iowa and Indiana, where land is cheaper and energy is more available, Andy Cvengros of real estate firm JLL tells Axios. The Midwest's abundant tax incentives are particularly appealing for companies, says Jon Davis, a policy strategist for The Council of State Governments. Ohio is one of several states with a sales tax exemption on data center equipment. And cooler temperatures and proximity to the Great Lakes reduce the need for energy-intensive cooling — an advantage over warmer southern states. Yes, but: The expansion often happens behind closed doors. Local governments frequently sign nondisclosure agreements with tech firms, limiting public knowledge of energy and water usage, says Helena Volzer of the nonprofit Alliance for the Great Lakes. Fewer than one-third of data centers track water consumption, according to a 2021 study. "That is kind of startling," Volzer says. The other side: Our world is growing increasingly digital, and the data needs to go somewhere. U.S. households had an average of 21 digital devices in 2023, per a Deloitte survey. "It's businesses of all shapes and sizes as well. They're increasingly relying on digital infrastructure," Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios. As companies build to meet that surging demand, energy is a "significant cost driver," and it's in their best interests to be efficient, he says. How data centers took root in Central Ohio Columbus' data center boom is largely thanks to infrastructure investments from Amazon, which opened its first local center in Hilliard in 2016. The big picture: New Albany was ahead of the curve even before that, adding centers for businesses such as Nationwide, Discover and TJX. The city wanted to diversify its business portfolio and increase the value of its rural land, Jennifer Chrysler, the suburb's community development director, tells Axios. Even with local abatements, adding the centers increased tax revenue for schools without adding students. The latest: Today, the suburb's burgeoning Business Park is what Chrysler calls an "ecosystem" of tech investments that made Intel's Ohio One project possible. What they're saying:"When you have names like Google and Meta and AWS and Microsoft and QTS in your community, people start to scratch their heads and say, 'What's going on in Central Ohio?'" Chrysler says. "There is 100% value in those kinds of big tech names being here." The hidden environmental costs of data centers Data centers house server farms that store our information, along with electrical equipment that gets hot, requiring 24/7 air cooling that annually uses millions of gallons of water as a refrigerant. They also use a large amount of electricity, which requires generating water. Between the lines: Their exact consumption levels are often unknown, since most of them rely on municipal utilities, Volzer says. Threat level: A recent Environment America report cautioned that this demand may delay the retirement of some fossil fuel power plants or require new fossil fuel generation.

Licking County superintendents get more time to prepare after Intel, Microsoft delays
Licking County superintendents get more time to prepare after Intel, Microsoft delays

Yahoo

time15-04-2025

  • Business
  • Yahoo

Licking County superintendents get more time to prepare after Intel, Microsoft delays

NEW ALBANY, Ohio (WCMH) — Local leaders told NBC4 they worried major construction delays in Licking County could complicate revenue for school districts, but superintendents are taking new timelines in stride. Microsoft's $1 billion data center investments were paused last week, not long after Intel's $28 billion Ohio One project was delayed again in February. Microsoft was set to build data centers in Heath, Hebron and New Albany, receiving various incentives, including property tax breaks. What does a 'yes' or 'no' vote mean for Issue 2? The Heath and Hebron centers were within the boundaries of Lakewood schools. Microsoft said it intends to follow through on its infrastructure investments in the Lakewood School District but will ultimately repurpose the land for farming. The New Albany development, which Microsoft delayed rather than canceled, joins Intel Ohio One in falling within Johnstown-Monroe Local Schools' district. Johnstown-Monroe Superintendent Philip Wagner said fiscal complications with Intel delays or Microsoft pauses are less impactful than one might think. As the area prepares for growth, enrollment numbers have remained relatively steady, so the revenue development would provide is not yet needed. 'What will drive the need for increased revenue is more housing, or more students in the school district, more residents, and we haven't really seen a significant increase in that so far,' Wagner said. Lakewood administrators agreed, and both Lakewood's treasurer and Board President said the Microsoft delays would not complicate their district's tax revenue. Still, Lakewood Superintendent Scott Coffey said the delay was 'disappointing.' 'We were and are definitely looking forward to a productive partnership with Microsoft and all entities who are choosing Lakewood as their home,' Coffey said. 'Microsoft has a stellar reputation for partnering with schools, and the adjusted timeline will simply defer the potential benefits of that partnership.' Ohio bill would mandate free feminine hygiene products for inmates In April 2024, Microsoft said local tax revenue was one way the company would give back to Ohio communities. Ohio school districts rely heavily on property tax revenue, but both Intel and Microsoft received property tax breaks from New Albany. Microsoft owes nothing in property taxes for 15 years, and Intel has a 30 year property tax break on its buildings, although it is still responsible for the land. To offset these breaks, Wagner said most of the money schools would receive from Intel or Microsoft would come from income tax funds. These payouts have been minimal so far, as Wagner said there have not been many new employees. However, Wagner said steady enrollment has given them more freedom to wait for payouts. 'The change is for us is more transient behavior. We have more students coming in and out of the school district than any time in our recent history,' Wagner said. 'Our overall enrollment is staying the same, generally, but we've seen houses turn over and much faster, and some of it's related to the demolition of existing homes to make way for economic development projects.' Within Johnstown-Monroe district boundaries, more than 100 homes have been demolished to make way for development. Wagner said the district receives a small sum of money from real estate transfers, which offsets possible property tax losses from home demolitions. What to know about SAVE Act, voting and Ohio REAL IDs Wagner said timeline delays offer more time for districts to prepare for increased enrollment. Johnstown-Monroe is investing in new construction, including a six-classroom addition at Johnstown High School set to open this summer. Currently enrolling around 1,680 students, Wagner said if enrollment reaches projected levels, the district could increase capacity to nearly 4,600 by constructing two new school buildings. 'We're taking any of these delays or pauses as an opportunity to continue our planning and to prepare,' Wagner said. 'So in some respects, that's been a gift for us. A gift of time.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Columbus Division of Fire investigated a water rescue call near Grove City on Friday night
Columbus Division of Fire investigated a water rescue call near Grove City on Friday night

Yahoo

time29-03-2025

  • Automotive
  • Yahoo

Columbus Division of Fire investigated a water rescue call near Grove City on Friday night

GROVE CITY, Ohio (WCMH) — The Columbus Division of Fire responded to a water rescue call near Grove City on Friday night. According to Chief Jeffrey Geitter with the Columbus Division of Fire (CFD), crews were called to Collier Crest and Clemente Blvd around 10 p.m. this evening on report of a car into a retention pond. Why Intel says it had to delay its Ohio One project Geitter says firefighters searched the vehicle and the pond, but no one was found. The CFD dive team could be seen on the scene in their wet suits after checking the pond to confirm that no one had been injured. There is no information on what led to this incident or how the car ended up in the retention pond. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Columbus business steps up after Contemporary Theatre of Ohio's grant money frozen
Columbus business steps up after Contemporary Theatre of Ohio's grant money frozen

Yahoo

time29-03-2025

  • Business
  • Yahoo

Columbus business steps up after Contemporary Theatre of Ohio's grant money frozen

COLUMBUS, Ohio (WCMH) — The Contemporary Theatre of Ohio was set to receive a federal grant from the National Endowment of the Arts at the beginning of this month, but due to an executive order signed by President Trump, the funds were frozen. After hearing about this, the owners of a local business — The Kitchen — Jen Lindsey and Anne Boninsegna decided to donate money to the theatre themselves. 'We feel very connected to being able to give back to our community in any kind of way that we can,' Lindsey said. 'We have received such generous support through the time that we were doing our Kickstarter campaign to open. We fundamentally believe that you should be a good neighbor.' Why Intel says it had to delay its Ohio One project in New Albany Lindsey expressed she and her business partner were filled with disappointment once they learned the Contemporary Theatre of Ohio's $10,000 grant from the NEA was frozen days before the opening of 'Fat Ham,' a show that had been planned for a year. The executive director of the Contemporary Theatre of Ohio, Christy Farnbauch shared her surprise when she found out what The Kitchen owners wanted to do to help. 'She called me and said they wanted to do $10,000,' Farnbauch said. 'We were, we are so grateful for that support and, you know, it really speaks to the power of small business, particularly women-owned businesses. Complete surprise and gratitude. Just complete surprise and gratitude.' The owners gave the same amount of money the theatre was set to receive from the grant, noting it was the least they could do because of all the support they have gotten from the community. National coffee chain to open drive-thru in parking lot of northeast Columbus Meijer On the last night of 'Fat Ham,' Farnbauch shared the news about the donation and said everyone was overwhelmed. Lindsey hopes this shines a light on the impact anyone can make if they do what they feel is right. 'I think the takeaway message is that you should, as a human, stand up and do what's right in your heart for what you feel to be your community and things that you find valuable to you,' Lindsey said. 'For us, arts and culture is a savior.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

DeWine wants new child tax credit, higher ed funding change
DeWine wants new child tax credit, higher ed funding change

Axios

time17-03-2025

  • Business
  • Axios

DeWine wants new child tax credit, higher ed funding change

Gov. Mike DeWine delivered his annual State of the State address Wednesday, laying out his administration's accomplishments and detailing new initiatives for the year ahead. A few things worth noting from the governor's 70-minute address, his second-to-last State of the State: 🍼 New tax credit: DeWine proposes a new tax credit up to $1,000 for every child under 7 "to ease the financial burdens of raising a family." 🫡 Tressel's first assignment: New Lt. Gov. Jim Tressel will lead the creation of "Ohio's workforce playbook." DeWine offered few specifics, but said the new initiative would focus on eliminating brain drain and recruiting "new talent into Ohio." 🎓 Higher ed funding: Colleges and universities are funded based on course completion and graduates. DeWine wants funding " partially" based on "actual student outcomes," including job placement. 👍 Confidence in Intel: Despite more delays, he praised Intel's Ohio One progress and said the company has already invested $7 billion of a planned $28 billion. He called the project "a clear signal to China and the rest of the world that, from now on, our essential manufactured products will be made in the United States of America." Watch the speech … read it.

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