June 8, 2026 · and Senate Select Committees on Data Centers · 22,421 words · 9 speakers · 166 segments
Good afternoon, everyone. Welcome. I call this meeting of the Select Committee on Data Centers to order. Will the clerk please call the roll? Chair Holmes. Here. Chair Chavez. Here. Senator Blackshear. Here. Representative Claggett. Here. Representative Glassburn. Here. Senator Reinecke. Here. Senator Wilkin. Representative Workman. Here. Okay, thank you. We have a quorum. We'll continue as a full committee. Ladies and gentlemen, thank you again. This is our fourth meeting now on the Joint Data Center Committee. As a review we were very intentional on how we scheduled this. The first one last week, government organizations came in, our initial one, just to talk about Ohio's relationship with data centers and what we've been doing as government at the state level. Last week we brought in concerned citizens for a public hearing to address those concerns we'd heard across the state in different ways and to have them and allow them to bring those concerns in the most public form we could create. Then, as you know, last Thursday we had the hyperscalers, the biggest four in the world, along with other data centers to come here and discuss those concerns with us. Our next step now, we thought, was to go and find local governments dealing with data centers, understanding their concerns, learning some best practices, and then also we have different organizations, trades, and labor, and companies that have deep ties with the data center community and hearing their perspectives as well. As a reminder, the mission of this whole endeavor is to ensure that Ohio citizens have accurate, relevant, and usable information concerning the economic, environmental, and security impacts of Ohio's data center development through discussion with experts, stakeholders, interested parties, and Ohio citizens. And that's what we're doing right now. Administratively, we're going to start right now. We're going to take a break at 2 p.m. Due to the number of folks wanting to testify, we're going to have to limit each period to five minutes, as much Q&A as required after that. So thank you very much for that. Standard protocols of committee hearings apply. So seeing no other questions, we will now start. We would now like to bring one more thing. Our first testifier has more experience dealing with data centers than maybe any other community in Ohio. They've put in a lot of effort and have been interacting for years. So with that, we'd like to call Jennifer Kreisler from New Albany to testify, to talk about best practices and lessons learned. Thank you, ma'am. Welcome to committee.
Thank you. Chairman Holmes, Chairman Chavez, members of the committee, thank you for the opportunity to testify before the Select Committee on Data Centers. My name is Jennifer Kreisler, and I've been honored to serve as the Director of Community Development for the City of New Albany for the past 21 years. I'm also here with my colleagues, City Manager Joseph Stefanoff and Economic Development Manager Sarah Ziegler. In the past 21 years, I've managed staff across all disciplines of economic and community development, including planning, zoning, economic development, engineering, and building. I am again honored to be here and share the City's experience with data center development and explain how the City of New Albany specifically has partnered and benefited from this industry I not saying that this is an appropriate industry for every community but we think that we figured out how to make it work within our community and we want to share that message with you today and with others in the state of Ohio that may be interested. The first part of what we want to share is about planning and transparency. The City of New Albany is a strategically planned community. This means that for the past 30 years, our residents and businesses have been involved in creating a shared vision for the community, which now includes 9,000 acres in our New Albany International Business Park. The community knows where residential and business development will occur, and because of these public engagement efforts and investments, there is minimal public objection when economic development projects are announced. This is an open process which minimizes risk for the city and for the developers. In 2005, the business park was anchored by one major industry cluster, corporate headquarters and R&D. One company in particular accounted for over 90% of our operating budget that supports all of our general fund revenue and activities. Our team was tasked with growing the business park through industry diversity, which included the attraction of economic-based industries and also the creation of new revenue streams. The very, very first data center investment occurred in New Albany in 2010. The original data centers were enterprise data centers or data centers that serve a specific company. The city pursued data centers because the property was valued at three times that of corporate office. We realized that we could help our schools by bringing data centers in, and in fact, we kept the New Albany Plain Local School District off the ballot for several years because of that investment. Several of the data centers we attracted served companies with national footprints, and we quickly landed on the radar screen of site selectors for large-scale Fortune 500 companies. By 2015, the central Ohio region became the focus of large-scale hyperscale data centers spanning different communities with Amazon Web Services being the first announcement followed by Meta in 2015. We needed to quickly pivot and try to figure out how we could gain economic value from these hyperscalers. We always viewed incentives as a tool for leveling the playing field to compete for economic development opportunities and to infuse new investment in Ohio. So to achieve this goal, the city created a formula that calculates a minimum payment for the data centers in New Albany that are in the amount of what that property would have generated if it had been developed as either corporate office or advanced manufacturing. And the streams of revenue that we use in order to qualify those minimum payments are income tax, TIF payments, New Albany Community Authority charges, and we do accept cash, cash payments in the form of pilots instead of taxes. Just to give you an example, one hyperscaler in 2024 had a minimum annual payment due to the city of $3.7 million. Through these qualified minimum revenue streams, they were able to generate $3.9 million in revenue. If you use our 2% income tax rate, that is the equivalent of a company with a payroll of over $165 million. All of that with not as many impacts to our safety services and traffic on the roads, yet we were able to get value from these data centers because of this formula that we developed. Also with respect to water and sewer, we do real-time monitoring on all of our water and sewer. We went out in 2015 and had the City of Columbus approve a water service plan for 16 million gallons of water usage within our community. We had about 1,200 acres in Lincoln County in our business park at that time. We grown to 9 acres and we still have not exceeded that level In fact we using a little over half of the original anticipated water that we would use in 2015 as we were growing our business park We work with the City of Columbus as well and the EPA on all real-time monitoring for affluent that's coming from the data centers. None of the data centers in New Albany or the state of Ohio that we know of have ever been flagged for this type of issue. Thank you again for the opportunity to testify. We are open to answering any questions. We would love to share New Albany's experience and our written testimonies on file for you to review as well.
Yes, thank you, ma'am, and committee. You can see there's a lot more detail in her testimony. It's very helpful. Committee, are there any questions? I'd like to start.
Senator Reineke. Thank you, Chairman. Thank you for being here. have visited the new Albany plant and know that they were doing a template for a plan that they put together in Marysville, which is in my district, and obviously planning makes a big difference. When you mentioned the... Can you elaborate how you work with all of the data centers to agree that your value-add point of purchase type of thing is the right way to go? Chairman Holmes, Chairman Chavez, as Senator Reineke.
By value-add, you mean the minimum payment, annual payment?
Yes, you described how you do that real estate tax
in lieu of the corporate headquarters type of thing, and were they all receptive to that kind of a plan, or did you have to deviate it with different companies? Or maybe you could elaborate on that, please. Thank you, yes. So New Albany has always considered incentives in general just a necessary tool in order to level the playing field when it comes to competition. It's not something we all want to do, but it's something we have to do in order to compete. What we quickly realized is that when we weren't looking at sites or companies from inside the state of Ohio or even inside of the region that were just looking to jump the outer belt to go from one incentive package to the other, we were actually competing nationally and internationally for companies. We started to look at other states and what type of incentive packages that they were offering, and we realized that we needed to be aggressive and we needed to be competitive because we were competing as Ohio. We weren't just competing as New Albany against some of our peers. So when we developed this formula, we actually developed it based on other formulas that we'd used for incentives in the past. So we have six industry clusters right now within the city, and each industry cluster has its own revenue generation per square foot formula that companies have to meet in order to receive incentives within our community. So it was a natural step that we would develop a formula for data centers. It was a little bit of hit and miss, the first formula that we developed, and we look at cost of service, we look at amount of square feet that would be developed per acre if it was developed as a corporate office or advanced manufacturing, and we look at the income tax revenue per acre that would be developed if those types of uses had come onto the ground and developed in that particular spot. So it was a natural form for us to have formulas. So I think the development community accepted it pretty readily, but when we presented our ultimate formula to the data centers, which is the formula that hasn't changed since 2015, by the way, and proven to be very, very successful for us, the data centers did not bulk at all. In fact, they asked what more they could do. And where the formula doesn't fully capture the investment the data centers make in the community is the add-on additional support that they provide, whether it's through community participation, infrastructure support. We have an example right now where three data centers have stepped up to help us build a road that was never part of a capital improvement plan for us but ended up getting wiped out by some heavy rains that we had And so they never once looked at that formula and said this isn going to work What we've encouraged other communities, because we've been sharing this formula with other communities, is that it may not work for everyone, but it can be the basis of a formula that another community works so that it can be something that's significant for them. Paula?
Thank you. One of the issues that I think has been really hard for listening to all the testimony when this is the fourth hearing is that there is a lot of control locally. So when you have people visit your plants and your offices, how do you convey to them that there is a lot of control at the local level and that you've exercised it where you are? And how do they ask you those questions and how would you respond to that?
Chairman Holmes, Chairman Chavez, Senator Reineke. We do have a lot of local control when it comes to local incentives, for sure. I would be remiss if I said that we didn't rely on our regional and state partners to help give us the expertise. We're only a community of 11,000 people. And so when we first in 2015 started to look at this industry, we didn't necessarily have the expertise to understand what the industry was about and where there might be other opportunities for us to generate revenue streams. And so by working with One Columbus, which is our regional economic development partner, The state has been hugely helpful and all the different departments within the state, the EPA understanding water requirements and air requirements and making sure that we're making the right choices. And then the Department of Development, of course, has been always very, very supportive. So it hasn't just been us trying to figure it out alone. However, we do think at the end of the day, the local support is important. We think that it's important for us to be able to be at the table and not have barriers that get us to the table to be able to negotiate with these companies. We need to be talking to them personally. We need to be finding out if they're a good fit for our community. And we need to be talking to them about not just the formula, but other ways that we want them to participate in our specific community in order to be successful. And we think that at a local level that is very, very important. And so we've had a seat at the table in every negotiation that's happened, and we go back and then brief our city management, our city council about those negotiations. And again, because it's formula-based, everyone comes to expect what the deal is going to look like because it doesn't change. The formula doesn't change.
Senator Wilkin.
Thank you, Chairman. Thank you for being here. You bring a very unique perspective in the fact that you've been dealing with data centers for quite a while. So, you know, we have the battle up here of here's what we do, says the data centers. Here's what we think happens, says the other side. So I just want to ask you a couple of questions. You may have answered this a bit. I just want to make sure we're really clear. Since you've had data centers in your area, tell us about the water usage. Because we hear that they use lots and lots of water. So can you tell us about that?
I can. Chairman Holmes, Chairman Chavez, Senator Wilkin. Thank you for that question. I can speak to New Albany. I can't necessarily speak to other communities and other systems, but I can specifically speak to how water is used in New Albany. We are a contract community to the City of Columbus, which means we buy our water as a part of a regional water system that the City of Columbus provides to us. The same with the sewer. All of the Columbus water and sewer projects and pipes and plants are monitored very, very closely by the EPA and state agencies. We have to present a water service plan to the City of Columbus every time we expand in our business park. And so in 2015, that was pretty much our largest expansion into the business park, which at the time was 1,000 acres, which has subsequently grown to 9,000 acres. And we have to give them a plan for how we're going to build utility into that park and what amount of water we're going to need to serve it. The reason that's important is because then Columbus has to plan for upgrades and how they're going to manage their water. This plan is a 40-year plan, so we're looking ahead 40 years at what the build-out of the entire community is going to be. The initial plan that we submitted to them was for 16 million gallons of service, and this is a lot of numbers that I'm throwing at you, but the reason I'm doing it is because the data is important. We have right now 40 data center facilities that are completed within our community, and they're part of 15 companies. So 40 data center facilities, whether a mix of hyperscalers, colo facilities, or enterprise facilities is a lot of data centers. We have about 28 more that are either announced or under construction. With all of the data centers that have been built and operational, and we do real-time monitoring of all of our water usage because we want to be able to monitor how much we're actually using compared to the desktop modeling that we're using to provide Columbus for their calculations. And so we know, based on that data, that most of the year, the data centers are not operating any differently than any other industry. We're less than 7 million gallons of water usage on most days of the year. There's about six times a year, sometimes it goes up to 10, where there are peaks, we call them, and that's when oftentimes the data centers in particular will be draining their on-site tanks. See, we tell them through economic development agreements how much water they can have. They don't tell us how much water they want. And so whatever they do on their site in order then to accommodate the amount of water we're giving them, they might have tanks underground, they might have above storage tanks, but they have to do certain maintenance items on their systems. They'll let us know, we'll let the City of Columbus know, and everybody will usually do maintenance on those days together. Usually six to 12 days we might get those peaks. The highest peak that we've seen in year 2025 just took our entire system a little bit over 8 million gallons. So we're still not even halfway through that original service plan. And just to maybe say it a different way and a little simpler than all those words I just spewed, our service plan goes for 40 years. We just recently revised our service plan because we're annexing additional territory into the community, and so we needed to make that revision. Our original service plan said that at the end of our build-out we would be at 24 million gallons. Our revised service plan says we'll only be at 27 million gallons. So we haven't, even though this industry was something we hadn't contemplated necessarily on the hyperscale, we haven't necessarily negatively impacted our water service plan as a result of it.
Follow-up? Thank you, Chairman. So when you say your original plan, were you planning on data centers at that time, or that was just your estimate? If industry comes in, this is how much water we figure they would probably use.
Chairman Holmes, Chairman Chavez, Senator Wilkin. We had not planned on hyperscalers at the time. We knew about enterprise centers. What we originally thought was that we knew we would be competing nationally and internationally. That was the goal. No longer poaching around the central Ohio region, no longer arguments about who's stealing what jobs. We knew that we needed to compete for projects outside of the state of Ohio and bring new income into the state We were successful with that with manufacturing so we kind of thought it would be manufacturing The very very first project that we got in this area that we planned for was actually a semiconductor, believe it or not, for Samsung. And so we knew it was going to be high tech, and we knew it was going to be something extraordinary, but we didn't necessarily know it was going to be hyperscalers. I think what happened is that we also had $65 million worth of infrastructure to build in order to realize that service plan. And so we couldn't unlock any ground in the business park to attract any companies. We had plans sitting on a shelf because of this master plan process that we go through, and we talked like it was in the ground, but it really wasn't built yet. And so we needed a big project to finance big infrastructure. so the first hyperscaler which was really meta helped us unlock that we took that 65 million dollar plan off the shelf we went to owda we got a low interest loan and not only were we able to build that plan for for meta we were able to unlock thousands of acres within the business park that wouldn't otherwise be available for development so amgen which is an international biotech company never would have been able to locate had we not been able to unlock that that PharmaVite, which is a company from California. Again, so we used the data centers in a way, and we kind of thought the hyperscalers might be a lost leader for us. And we said, okay, look, if we can use this data center to fund infrastructure, to build all these other things, then maybe it's a lost leader. But it turned out to not quite be a lost leader. It turned out to generate enough revenue to cover our debt service and much, much more.
Follow-up? Follow-up. So staying in the realm of water, and I don't know if you're contracting with the City of Columbus if this would be an easy answer or not, or if you have this information. But one of the other things we've heard is chemicals that are going in the water that are coming from the data centers. To your knowledge, is there any chemicals that are going in? Because some were told, like the EPA doesn't even test for them at the wastewater plants. Do you have any information you can share with us on that?
Yeah. Chairman Holmes, Chairman Chavez, Senator Wilkin. Thank you for that question. While we don't do the specific testing ourselves in New Albany, we do rely on the City of Columbus to do that testing. In fact, they have a report that they issue every year, and it's in their City of Columbus Water and Power. It's the 2025 Drinking Water Consumer Confidence Report, where it actually does show the testing that they do at all of the plants so that you can see everything that's within the water system. We also have testing that's pooled testing in different places of the business park. Again, to monitor what's going into the system, but also so that we can be keeping track of how much super capacity we have as well, right? Because we want to be monitoring the water capacity and the super capacity at the same time. never once has any plan that's been submitted by a data center and to the city of Columbus for approval ever raised a flag for them with respect to the constituents that they look for and the affluent that's put into the water, nor has there ever been any calls from the city of Columbus to the city of New Albany saying that they've tested and found any sort of chemical that they would think is not in accordance with the approved chemicals that are allowed to be in the water.
Thank you.
One more?
Okay. I'll quit after this one.
Okay. And then we'll move, and then we'll give everybody three shots and then go to a second round.
So this is hopefully pretty simple. Yeah. And thank you, Chairman. Just noise Is there have you had much report of noise or we hear about the hum or anything like that Has that been an issue with the way you have it set up in New Albany And with that I end my questions
Chairman, thank you. Yeah. Chairman Holmes, Chairman Chavez, Senator Wilkin. We have had in the business park as a whole probably, not probably, about since 2010 about six complaints of noise overall in all industries within the business park. Four of them since 2010 have come from data centers. Three of the four data center complaints have been resolved within a matter of one to two days. Usually it was a malfunction in a generator specific to something that they were aware of and changed the part and it worked. We do have an ongoing noise issue right now with one of our data center partners. It is a hyperscale partner. We found out about it on September 17, 2025. Within two weeks, that company had already mobilized a group of people from across the nation that were mechanical engineers and experts in noise and sound. And they deployed onto the site. They met with our staff. Some of those folks came to council and talked to our city council about the noise complaint. They tried some mitigation efforts for about three months, and then by January they had committed that they would deconstruct the cooling towers. it turns out that the problem is with the fans. They went to a different manufacturer. They already had half of the site built with no noise. And in fact, a brand new, they started construction in 2018, and a brand new residential subdivision was built just about two football fields away from them on the south side of Morris Road. And the residents that built there walked around that site and realized that they would be a good neighbor. We actually site data centers in transition areas from heavy industrial to residential because they've been such good neighbors in our master plan. So this company, they did go out, they've ordered all of the parts. Unfortunately, it's just a situation of procurement. They've secured the procurement, and they have committed $20 to $25 million this summer, as soon as the parts arrive and the cranes arrive, to deconstruct the towers and reconstruct them with the quiet parts that they used for the original towers. I will say that there was never a question of there's no noise. there was never a question of prove it in your code. Our code is not written on a decibel level because that can be industry standard for decibels for data centers of 65. Our code is written so that no project that zoned general employment, which includes all of our industrial data centers and industrial, can have a noise level higher than the street at the closest residential neighborhood. So the expectation isn't a decibel. the expectation is that the street level at that residential neighborhood that's the closest, that will be what you hear at the property line of that data center. So those are pretty high standards to meet. And not only have the data centers met it up until now, but the data center that's not meeting it is working very, very hard and is acknowledged on their own letterhead, we understand the problem, we've secured the funding, this will be resolved by September. Thank you.
And thank you. This is a great opportunity for us, so thank you for your patience.
Senator Blackshear.
Thank you, Chair, and thank you so much for being here. Just a couple of questions. My first question is, have the residents in New Albany voiced concerns about the data centers?
Chairman Holmes, Chairman Chavez, Senator Blackshear. We have not heard any complaints from any residents during the time of rezoning going through any sort of planning or public hearings that we done for anything within our business park I think it goes back to that idea of having a strategic plan in place. And so as agricultural ground is not necessarily being farmed anymore, and as it's being transferred into hands of developers, we know because of the strategic plan that's already been taken through an extensive public process, what that property can be rezoned to, and it's very specific about what it can be rezoned to and what it can't be rezoned to. So I don't think that there's been any complaints about how the business park has grown. What we are hearing is not necessarily complaints, but questions from people, because there's a lot of noise out there right now about pollutants, air pollution, water pollution, and people are wondering why it is that we have all these data centers in New Albany. So we've given presentations to our sustainability committee. We've given presentations to residents. We're now creating a website similar to what we did with the Intel project, and we call it the Repository of Truth, because there's so much noise out there right now that is just not substantiated by our experience that we think that we need to come up with a common place, which is this website, which we'll launch tomorrow, in order for people to have truthful information. They don't have to like it, but it's going to be the truth and it's going to have information on whether or not there's an EPA violation. You'll notice with the Intel site, on one of our own road projects that we did in order to support the Intel project, we had an EPA violation. We put it up there and we put up our remedy and how we fixed it and we put up our notice of resolution from the EPA. We want to be as transparent as possible with the public because the noise is not transparent and there's no data to support the noise that's out there right now.
Follow up. Thank you, Mr. Chair. Thank you so much for that answer. My next question is, does the data centers in New Albany have their own generation?
Chairman Holmes, Chairman Chavez, Senator Blackshear. Most of them do not. We are just now entering a new phase of development where that's probably one of the lessons learned for us, and we're always learning and evolving as a community. In fact, I'm so honored by the hundreds of people that we've met from across the state of Ohio as we've shared our story with other communities, commissioners, because we're learning from them as well. We were a little surprised by the fact that some of the newer facilities that are being built right now will have on-site generation. And a couple of things that did surprise us. We did not realize we would lose local control and that control for those would go to the higher power sighting board. I can't say enough about how well the Hyo Power Sighting Board has treated us, and we've been able to take our zoning regulations and the things that are important to us and our master plan and put those into the hearings for those generation facilities, and they've been included within the approvals. We did have to hire an attorney to do that, though, and so if I was a smaller community or this was my first opportunity to have a data center, I wouldn't know that I needed to hire an attorney in order to go and join that case in order to be a party to that opportunity. So we don't necessarily think that they're a bad thing. We just think that there maybe needs to be some guardrails or something out there that's an education piece for communities that don't necessarily have the experience that we do. There are two different ways, and if we were going to recommend guardrails, there's two different ways that these are built. One way is that they're built by independent entities that are selling power to the hyperscaler. In that particular case, they're considered a utility, and under tax law they're taxed as a utility and they have to pay tangible personal property tax. That translates to millions of dollars for all of the taxing entities, the counties, the schools, the townships that would not otherwise receive incentive or receive value. The other way to do it is if you are owned by the data center company and you're generating your own power, then it's just part of your manufacturing process and it's not taxed. So that's an opportunity lost, we think, for communities. We have both of those within our community. So there's two projects that are under construction right now. There's two more that have been announced or that are at the Ohio Power Siting Board. And I think the lesson we would have learned is maybe in our development agreements ahead of time with the hyperscalers, we would have said that if they're going to use on-site generation or alternative forms of power, that they're structured in a way that, number one, the city would be able to, or community would be able to include our zoning regulations and design regulations as a part of their submittal. And then number two would be that they were taxed, they were structured in a way that they were taxed as a utility so that the taxpayers aren't losing out.
One last follow-up. Yes, sir. Thank you, Mr. Chair. My last question is, looking back, would New Albany have done anything differently? in regards to the data center development in your community?
Chairman Holmes, Chairman Chavez, Senator Blackshear, the number one thing we would have done is put a website up earlier with all of this truthful information, because the noise is just distracting, and it's taking our attention away from our day-to-day tasks, and it's taking the attention away from a lot of the people across the state that we've met with that are really struggling with this opportunity. And again, it's not the right opportunity for everybody, but when the conditions are right, it is an absolutely fantastic opportunity to either unlock revenue for your own community or unlock infrastructure for additional ground in order to attract other economic development. And so I think we would have got ahead of where we are now and maybe put some information out there similar to what we did with the semiconductor industry. There was a lot of misinformation about semiconductors, and we would have done that. Otherwise, I think the other maybe issue we would have handled early on is utility corridors. There's a lot of fiber that needs to be built into communities in order to support hyperscalers. It actually has turned out to be an amazing benefit for our residents and residents of adjacent communities because we are on the fringe community of 270, and so there's not a lot of opportunity for fiber to the home for our residents, and now because of these big construction projects through the community in order to serve the hyperscalers. Now we're having opportunities where we can get fiber to the home where we couldn't before. It's just where do you place all that utility? And so we would have worked to create some utility corridors and made that process a little bit easier.
Just a point of clarification.
What do you mean by the noise? Can you describe that a little bit?
Yeah. Chairs, Senator Blackshear. The noise specifically around misinformation from our perspective about the potential dangers of the data center. We look at building plans, and I'm in charge of the building department, and there are concrete slabs with concrete tilt-up construction walls with computers in them. The cooling systems, when you actually look at the plans for them, a lot of the information that at least we are hearing in New Albany about concerns about ground water contamination wells drying up First of all that impossible because of the way that we using our water with the City of Columbus, but also the way that these are constructed don't lend themselves for that type of contamination. They're not actually manufacturing anything, and so they're not necessarily emitting things. So I think when I say the noise, I mean, there's the issue of whether or not a community has the ability to negotiate economic development agreements, whether they want to provide incentives, those are all big issues that I think we have to grapple with and we should be grappling with. But when we're talking about things like contamination and we're talking about when there's no proven data, in Ohio at least, and in New Albany around it, that's the noise that we're trying to separate.
Thank you. Representative Workman.
Thank you, Mr. Chairman. Thank you so much for being here and providing this unique perspective on the discussion that we've been studying so far in this committee. Truly, we heard from the hyperscalers last week that there was a promise of what this could bring to our communities. And you're here before us today telling us that promise is real, that there's actual real benefits, and that maybe some of those fears and risks are overinflated or maybe even sometimes not true. So seeing potentially $3.9 million in revenue flowing into a community of 11,000 people, I would imagine that would be revolutionary. Can you talk about that impact on the community itself, the schools, the infrastructure development, the residents? How is this kind of changing? the community that you've lived in? Is it a net positive, or are there challenges we still need to work through?
I appreciate that. Chairman Holmes, Chairman Chavez, Representative Workman, thank you for that question, and again, thank you for the opportunity to be here today. We are just blown away by the impacts, the positive impacts, that the data centers have had within our community. So the first piece of that is that that $3.9 million is just one hyperscaler project, and that doesn't even include all of the other projects that we have within our community. And that was tax year 2024, so that doesn't even capture what's happened on that particular site even in the last two years. What we know is that these funds are coming in, and some of them are through TIF payments, some of them are through community authority, which are both restricted type of funds. Community authority is a statutory entity that enables communities to do really creative things through a board, like levy a community charge. And so we have a 9.75 mil charge that we put on all of the property within Licking County, not just data centers. And you can use it directly for public projects. And it's a little bit broader than TIF dollars, wherein that it can be used for schools. It can be used for fire departments. It can be used for parks. It doesn't have to have an essential nexus back to the project itself. So we've been able to do a couple things as a result of that. But first, I want to talk about the schools. So the first hyperscaler that we landed is located in the Licking Heights local school district. Dr. Wagner, who's now going to be the superintendent of the state, and he's now with the Johnstown Monroe School District, was with the Licking Heights School District at the time. He can tell you that because of the value of the ground from CAUV value to the hundreds of thousands of dollars per acre that hyperscalers are willing to pay for these projects, that tax revenue alone that's unabated on the land kept the Licking Heights School District off the ballot for several years and generated a revenue stream for them that helped them really refocus their finances and do some amazing things within that particular school district We in New Albany also have agreements with our townships and so all of our abatements are non-fire. And so we make sure that the fire departments in the township and sometimes even the township themselves are made whole because we want to make sure that those that are providing services to us are taken care of despite the tax incentives that we may offer. When we first started to look at the hyperscaler, again we were looking at that revenue stream in order to finance debt at OWA which the community authority and the TIF and actually the minimum service payment in those agreements. We put a lien notice on the property as well so we take position in the property. Is enough that that's enough collateral in order to go out and get low interest loans at OWA which has been an amazing partner to us. So that first $65 million we didn't know that it was going to generate more revenue for the community. We were just hoping that it only generated enough so that we could build that $65 million worth of infrastructure and unlock thousands more acres for other types of developments, even if it was data centers, but just more development to come into the community. What we've been pleasantly surprised by is the fact that they're not only the minimum revenue formula that we created is not only covering the debt service, but it's now generating enough revenue that we've built Taylor Farm Park, which people in the community think is a metro park because it's visited by so many in the area. We're getting ready to go out and sell $50 million worth of bonds, all financed on the back of the hyperscalers, in order to build a new Veterans Memorial in Rose Run Park, to expand our police facility, to build a new police training facility, and expand our public service facility. And all of this is happening without burdening our general fund. So our general fund may be burdened by operational expenses, certainly in order to run all of these wonderful new facilities and parks, but we're able to do all of these amazing projects, either financing them or paying cash for them. We just recently partnered with the Plain Local School District, and they went on the ballot and approved for a new ball field and athletic complex. The site that they originally chosen wasn't going to work, and they couldn't figure out what they were going to do. We went out and took an old Discover site property, and using the money that we received from the data centers, we were able to purchase that property for the schools, and now they're building a new athletic complex. So there's different ways and creative ways to partner so that all of the community entities within the community can have a winning position as a result of them. And then last, I'll just say that because we diversified our revenue streams, for a community of our size, and a lot of smaller communities that we've spoken to know this, it's very, very difficult to get the highest rating that you can at all the rating agencies. But because we've diversified away from just income tax only, and we now have this community authority charge and TIF and obviously the payment in lieu of taxes, We now have a AAA rating at Moody's, S&P, and just recently we received, in fact last week, our AAA rating from Fitch. And so the ratings agencies are looking at what we're doing financially with the hyperscalers, and they're paying attention. Paula?
Thank you, Chair. So I guess with all of that investment and development, How do your residents feel about this hub, this technological hub now in New Albany today? Do you still get a lot of concerns, or is it generally very positive because they see the investment?
Chairman Chavez, Chairman Holmes, Representative Workman, overall the sentiment is very, very positive about development in New Albany. Other than the concerns that have been raised recently because of the misinformation that out there about how the data centers are using water and polluting the streams and things like that within New Albany Generally it been very positive We purposely do surveys every several years with all of our residents to measure our work as city staff. And we're in a survey year right now, but the last survey a year, it's every other year, showed at over 90% approval rating for where the city was going, what we've been doing from an economic development perspective, and the industry we're bringing in. Anecdotally, we do lots of planning throughout the time frame. We update our strategic plan every five years, but we do smaller plans in the meantime, and we do extensive public engagement when we do those plans. We just did a small plan for the US-62 corridor recently, and we had one of the largest public engagement efforts that we've ever had on any of our planning projects and what we heard confirmed resoundingly that people want us to continue to do what we're doing. They want us to continue to put the guardrails we do with design, the fiscal responsibility, environmental responsibility and there's still more we could always do in those areas but as long as we abide by that strategic plan our residents have been very, very happy with what we've done.
Representative Claggett.
Thank you, Chairman. Appreciate you being here. One of the concerns that's been raised that we've heard something about is the non-disclosure agreements, and so I'd like for you to please help us understand how that's been done in New Albany and what you've seen in perhaps other communities as well as it relates to that specific issue.
Chairman Chavez, Chairman Holmes, Representative Claggett. I appreciate that question. we do use non-disclosure agreements in New Albany, but we do them in a little bit of a different way. As public servants, we're bound by the higher advice code, and we're bound by our ethics code that we have to make public information available as it is available. There are exceptions to that, and so what we do with non-disclosure agreements is, number one, we never ever sign a non-disclosure agreement that comes from the company or the broker or the site selector. We have our own non-disclosure agreement, which really is just an agreement, and it's part of the toolkit that we've been sharing with other communities as they've come and visited our community. But it's really putting those companies and those site selectors on notice that this is the Ohio law. This is what you can expect. This is what we will disclose. This is how we follow the law. Without NNDA in place, we believe that economic development will be severely hindered within the state of Ohio because it will limit anyone who's not subject to that NDA, their ability to have a seat at the table, and that's critical, right? We don't want other people negotiating on our behalf with companies. But we think that there's ways that NDAs have been done, and we've even talked to some other smaller communities who didn't know, and they signed an NDA from the company and didn't realize that they couldn't do that. And we take our NDA to council. We show the council the NDA. They approve it ahead of time. It's a template form. It doesn't get changed. We hand it to the company. They can take it or leave it. And really, it's a way for everybody to have notice about Ohio law. There are opportunities within the NDA for if we get a public records request, a company can review that request, and they can redact information that they deem is exempted per the law. So it might be trade secret, national security. And it's up to them, the burden of proof is up to them, that that information can be redacted. But other than that, we just really want to put the companies on notice that this is the law that we have to follow. Okay, Representative Glassburn.
Thank you, Mr. Chair.
So I think it's pretty clear that your community has found a way to make good deals and make this good for your community. Is there any reason to believe that other communities cannot do the same? Is it you are proprietary and we need more of you? Or can the state somehow step in and help other communities not make bad deals?
Chairman Chavez, Chairman Holmes, Representative Glassburn. And we've had the most amazing honor, and it's not something that we intended to do, but something that we sort of fell into because my colleague, Sarah Ziegler, said it's right for the state of Ohio and we're going to do this. We've met with over hundreds of people from across the state of Ohio. We had Michigan and Indiana, but we cut them off. So we did meet with a couple of them, but just for a minute. And we've met with hundreds of people, more communities than I ever knew existed in Ohio, and they all come with a different story and a different set of skills. So we're at the end of our life cycle as far as attraction from a building perspective. And this is such a complex issue, and it's filled with so much emotion that we created a toolkit. It's not fancy. It has elements of a template agreement for our CRA, a water matrix that we use that we make every company fill out, a non-disclosure agreement, our zoning standards for noise, community authority documents if people want to create their own community authority and a news article actually from a community that secret shopped us with a reporter and came back and without anybody knowing they were here, came in and they had a certain expectation of what the data centers would be like and ended up writing an article about that which was opposite of what they had believed. And then we used the Marysville PowerPoint because Marysville has done a great job taking our toolkit and making that their own. And so we think that there's an opportunity and what we heard and this was, we had three communities come last week, and one of them was the Lakes area, and one community looked at us and they said, we have a budget of $3 million, and we have no staff, and your toolkit means everything to us, but like, where do we even go from here? So, Representative, I think you're exactly right. I think it's a matter of, you know, we had to humble ourselves in order to learn, and we had to humble ourselves to learn about data centers, hyperscalers. We had to humble ourselves to learn how to compete outside of the state of Ohio and bring investment from outside of the state into our great state. And so we leaned heavily on state agencies. We leaned heavily on our regional economic development partners, right? And I think that's partially where people need to step up, right, in these regional organizations. One Columbus, we didn't have spreadsheets that showed minimum payment. You know, we asked one of their staff, who was so talented, to make a spreadsheet for us And we didn't know what the industry standard was for decibels for data centers, but somebody from Jobs, Ohio, who's a specialist in data centers, was able to tell us what that industry standard was. So I think that any work that you're doing to create an opportunity for there to be a toolkit or training or specific guidance around how to manage these projects, because it's not data centers is just today, but we're unlocking an industry that we don't even know yet what's to come. In the semiconductor world, our state codes, when we brought intel to the community, our state building code didn't even contemplate a semiconductor industry. We had to, you all had to adopt a new state code because we had nothing that we could actually compare the plans to. And that's really where we are with this IT, information technology, and mission critical industry cluster, is there such an amazing opportunity for success in Ohio if we manage it well and kind of unlock some of the guidance that necessary in order to help some of the communities that don have the resources that maybe we have
Follow-up?
Thank you. Some of the testimony we've received has started to make a distinction between the hyperscalers, the big four tech companies, and everybody else in the data center space. If we were to restrict or eliminate incentives for either of those groups, how would that have impacted your community?
Chairman Chavez, Chairman Holmes, Representative Glassburn, we would have never been able to compete. And we don't want to give incentives. And we're thinking about all of this in light of one of the hyperscalers made an announcement that they don't need incentives right now, and the others haven't shared that messaging, and so we're really trying to understand what that means moving forward. we should always recalibrate, right? Just because we do something doesn't mean that it has to stay the same. But right now, the combination of incentives that we have in place have been extremely valuable. First of all, we are competing against states that offer real property tax abatement as a gift 20 years. For us, it's maximum 15 unless you're classified a mega project, and then you get 30. So we're already competing with other states. Over 30 states right now have some form of a sales tax exemption. And so by eliminating that, we're eliminating the competition. And so if these hyperscalers or other data centers have facilities elsewhere in the country, they're going to keep investing in the places that are incentivizing them to invest. We've never seen an industry that has refreshed at the scale and to the dollar amount that the data center industry does. So every two to three years, they're putting at least $100 million, the hyperscalers, into refreshing. And what that means is there is a sales tax exemption that comes along with that, and I'm not suggesting that it doesn't need to change and there doesn't need to be some sort of parameters or guardrails around it. But what I am suggesting is that for every refresh behind that are the technical people that are hired in Ohio that maybe didn't have jobs before or maybe weren't part of a technical coalition that knew how to even put this equipment in, specialty electricians, specialty trades that are now living in our community and staying in our community because they're coming to work every year for these refreshes. and it's translating to millions of dollars for them in that industry. And so I think we have to figure out a way to provide incentives to compete with all these other states. We're in a different place now. Like, I would argue Ohio's winning. Like, we're winning. You look at all of these amazing projects across the street, Anderil, Joby, Hicama, Whirlpool, Vertiv, as a state we're winning. Not every community is winning yet, but we're being challenged with competing on a global scale, and we need to be able to have tools to be able to do that. It's just thinking about right-sizing those tools and putting the right guardrails and benchmarks in there is important.
Paula? Thank you.
If we were to make any kind of policy, again, that uniquely hurt either the big players or the little players in this space, in your community, we've heard public concerns that this is single-digit or tens of jobs. If we were to harm either of those buckets or both, are we talking about in your community tens of jobs, hundreds of jobs, thousands of jobs?
Chairman Chavez, Chairman Holmes, Representative Glassburn, we're talking about hundreds to thousands of jobs. We have 9,000 people right now on the Meta site alone. What our statistics tell us is that we have 25 construction workers that are coming to New Albany every day just to work on the data centers alone And then after they built those turn into thousands of jobs that come in for the refreshes And so it's somewhere in the neighborhood of hundreds to thousands of people that are employed just keeping these things up and operational.
Co-Chair Chavez.
Thank you, Mr. Chairman. Thank you for your testimony. Thank you for hanging in there. I was worried you were going to wear yourself out on your answers, but we need to tap into your energy source here for the state. I've taken a lot of notes. I appreciate all the great information. I had a lot of questions, and the committee has done a fantastic job of covering a lot of them, so I may kind of dive back into a couple just for some clarification, and then I'll turn it over and come back and finish up if I need to. NDAs. So you mentioned that you signed your own. In your opinion, are they necessary?
Chairman Chavez, Chairman Holmes, yes. They're essential to the process? We will severely limit our ability to do economic development if we don't have the ability to sign NDAs and implement them in the right way.
Thank you for that.
Follow-up? Yes, sir. Follow-up? So you mentioned your information package. I would love for the state to be able to amplify that out because we have a lot of communities that feel like they're negotiating alone. This is the first time they've had transformational projects in their communities to this scale, and we would love to be able to help them out. Is that something that we can get some guidance from you on?
Representative Holmes, Senator Chavez, absolutely. We've created this toolkit. We're blasting it out to everybody. It's not very sophisticated, but all the information that we have can be readily available to anybody who needs it. And our staff has also volunteered man hours to go through spreadsheets with other communities to see where the formula might work for them and answer questions that they might have as they're going through the process.
Thank you.
You talked a little bit about the jobs, and that's something that I don't want to gloss over because we heard from one of the hyperscalers, they serve 800 meals a day in one of their data centers, and somebody's eating all those meals. But can you talk about the local benefits, the ecosystem that these projects develop, local businesses? Yeah.
Chairman Holmes, Chairman Chavez. I appreciate that question. So the multiplier effect is a little bit different in the IT world than we see in normal industry, right, with a supply chain, with traditional manufacturing. It's kind of a linear supply chain that you can follow. What we're seeing is that with the data centers, there's definitely an impact on the local economy when it comes to construction jobs, without a doubt. We just shared that Turner alone has 9,000 people on the Meta site south of 161. There's 25,000 construction jobs that are coming to our community and have been coming to our community steady since 2015, since we started building data centers, and we have 28 more to go, so that doesn't look like it's going to fall off. So for over 15 years, we've had that steady stream. So that means our hotels for people who are visiting from specialty trades, our restaurants, our businesses, our local businesses are certainly benefiting. What we're also finding is that other companies are benefiting as well. So people that are looking to locate near these data centers that have high levels of latency, which means that there's infrastructure built into them in order to keep them operational, they're also locating in these areas as well. Their customers are benefiting as well. We're seeing leads from people who make racks, people who do computer service and technology. all of those types of industries that are really associated in some cases with the service industry, because it's computer tech. So we might not see it as a traditional manufacturer They not necessarily the tire maker but they the folks that are software companies that are coming in and they doing programming safety and security right That a huge industry that benefiting as a result and growing jobs as a result of this industry. So we're seeing it in some very, very unique ways. And then we're seeing it also when it comes to AI. You know, these data centers are, a lot of them are AI manufacturing centers. And so with a lot of technologies, whether it's from driving your car to getting ice out of your refrigerator requires chips which are driven by some form of AI. We often think of AI as just social media, but that's not really what it is. It's imprinting code on a chip so that we could get water out of our ice dispenser in our refrigerator. We could turn on our car and have the music we want to listen to. And so it's all of those types of impacts that are really changing the way that we see this industry cluster and growing that in a magnificent way.
Thank you. I appreciate that. I appreciate your knowledge and your passion. You're not talking in the abstract because you've lived it, right? So New Albany's been living this for 10 or 12 years, is that correct?
2010. Since 2010, okay.
We want to look at all sides of it. So have you noticed or is there any kind of evidence that your constituents, your citizens around there have had increased water or sewer rates or electric rates or anything directly attributed to the data centers? Chairman Holmes, Chairman Chavez, I appreciate that question.
We have seen an increase in rates recently, which is unfortunately coinciding with a lot of the attraction that the state of Ohio is getting nationally and internationally for all these companies, whether they're data centers or whether they're manufacturers, biotech, pharmaceutical, that want to locate within the state. The reality is that there are big infrastructure projects that need to be built. Those projects have been on the list to be built for many, many years. For example, the city of Columbus, in all of their master planning, has planned for a fourth water treatment plant to be built for many, many years. with rising costs. That plant was on the books at one cost, you know, 20 years ago, and it's another cost today. And so that plant has to be built. They've committed to build that plant by a certain time frame, and we're now at that time. And so as a result of the redistribution, as a result of that investment, we're all certainly feeling those capital investments that need to be made in order to keep infrastructure moving and growing. It is not directly attributable to the data centers, And we know that, at least in New Albany, from our data, because the average usage isn't any more than the average industry within our community. It's just a necessary infrastructure item as a result of the growth of the economy, not necessarily the growth of data centers in the economy.
Follow-up, last one. Yeah, I appreciate that. Correlation does not equal causation, right? So last thing on making sure that we look at all aspects, have you considered closure or remediation plans for data centers? And would you consider that for all industries, or are data centers something different? You mentioned they're just a building, right, with servers in them. So are you concerned with closure and remediation of these facilities?
Chairman Holmes, Chairman Chavez, absolutely not. In fact, this is the industry that I'm least concerned about remediation for. Number one is that they're concrete slab construction with tilt-up concrete construction walls. What is the best reuse for that? Manufacturing, right? And so they're fantastic buildings for manufacturing reuse. There is also nothing that would cause them to need to be remediated from a brownfield perspective. They're data halls with computers. and closed-loop water cooling systems, right? And so the actual reuse of them we don't think would be a problem. In fact, we think that there's a lot of great opportunity for reuse with manufacturing and especially biotech as it continues to grow within the community. Our hope, quite honestly, is that we don't have to worry about that because we're going to continue to have a toolbox available at the state that allows these data centers to want to continually refresh equipment within them, and it's easy for them to do that. The buildings don't become obsolete. the equipment does. And so by focusing on incentives that allow them to refresh that equipment and keep that shell building for the next 40 years would be ideal. Thank you.
Committee, is there a round two? Yes, Senator Wilkin, thank you for your pay. This is extremely helpful. This is extremely helpful. Thank you. Thank you, Chairman. So I'm going to ask you a hypothetical.
Okay.
so you move to another location hired to do same or very similar job as to what you're doing and mayor, council, whatever it is comes to you and says we have a data center that wants to locate here what do you think?
oh Chairman Holmes, Senator Wilkin if it were poof me with the knowledge I have today I would say let's go let's get this done you know obviously bringing the formula together and trying to figure out number one I would evaluate what their water system are they part of a larger water system and what does that mean and making sure that all of the conditions that we have here are similar right number two is what's the available ground and what is it next to and what does your community plan say right and then three taking a look at the finances and really working backwards and trying to figure out how we can use that formula to unlock revenue for that community because maybe they just want one in order to unlock revenue to do other things. Maybe they want to start a cluster and trying to figure out how that would work. But without a doubt, given the right set of circumstances, absolutely, I would encourage them to explore this.
Thank you, Chairman. I know a couple of people brought up the NDA issue. And I have a question. do your elected officials sign or just people in your economic development or your position over the building department? Is that right? Correct?
Yeah.
Is it that or does everyone sign?
Yeah. Chairman Holmes, Senator Wilkin. So the city manager signs on behalf of all of city staff and our consultants. The actual NDA itself is a template that has already gone to council for approval. Our council does not sign that. And in fact, we don't necessarily disclose to our council who the company is that we're working with. But what we do have is the ability, and we changed our charter to be able to go into executive session with our council and really at the right time completely debrief them on everything that's going on with the project, from who the project is to what the financials look like, what the infrastructure cost is going to be. Just by the laws of executive session, they're prohibited from then discussing that out in the open. But what we also very clear about with our companies that we sign NDAs for is that when it comes time to come to the council to approve your package whatever it might be we need to have talking points and we need to be able to share with the public this story what the incentive package looks like what the infrastructure is that we need to build we need to be 100 transparent about what it is what they were doing why this meets our strategic plan and all of our planning efforts why this aligns with what we doing And that all has to be brought out in that council meeting when we approve that final package.
Last thing. So, thank you, Chairman. It sounds like you would say that the NDA minus elected officials signing it is an invaluable tool for economic development.
Yes.
Thank you. Thank you.
Representative Workman.
Thank you, Mr. Chairman. Apologies for doing this again, but I had to ask you a question while you're here with us. You're such a wealth of information. There seems to be a significant and very powerful fear campaign that has taken hold, especially on social media, and I'm not saying that concerns are not warranted. It sounds like we do have some concerns that we need to overcome and place parameter and restrictions around to make sure that these are done right. But my question is, you know, we see all across the country that the fear takes hold and it's paralyzing and there's no way to overcome it. So say, for example, a community sees the benefit and the investment as being a very positive thing for their residents and their communities, but the residents are not aware of that. How can the council, how can that community overcome the fear and correct the narrative? And is it even their responsibility?
Chairman Chavez, Chairman Holmes, Representative Workman, we're grappling with that very same question right now. We found success in the semiconductor industry because there was a lot of fear. Nobody had ever seen a semiconductor in the state of Ohio before. And what did that mean? And I think for a while there was conversations about thousands and thousands of employees descending on Ohio and where are they going to live and what are we going to do and how is this going to impact. And so I think the fear of the unknown is out there. We strongly believe that, again, and I'll say this, I said this before, I'll say it again, Ohio is winning. Like we are winning some amazing, amazing companies. And I've been in this business for 28 years. I've been in New Albany for 21 years. I've never seen as a whole Ohio in such a competitive position globally to attract economic development. And I think with that global attraction comes consequences, right? And the consequences that there are people out there that don't want us to succeed. There are people out there that don't want chips to be manufactured in the United States. There's people out there that don't want manufacturing to happen in the United States, right? And so our national security depends on that economic success. And in my opinion, in the last especially 15 years, Ohio is leading that charge. The Midwest, in fact, is leading that charge. And I think that puts a target on our backs. And so what we're all grappling with right now is what are the normal questions that citizens and councils and people should be asking in order to find out more about an industry and making sure that they're making the right choices so that that specific industry is the right fit for their community. Because it might not be, and it's okay that it's not. But those are normal questions that we should be asking. And then that's paired with the fear-mongering that's happening right now. And I called it noise when Senator Blackshear asked me the question a little bit earlier. But I think fear-mongering is the better term, is that that's paired with questions that are coming from unreliable, non-factual sources. And so one of the ways we're at a local level trying to combat it is we're here right now. We're meeting with all of the communities. We're taking tours. We showing them feels and touches and saying to them this is what you afraid of and this is what you seeing We putting a website up in a similar way that we did with Intel the Repository of Truth because it the only way that we know to fight some of this misinformation and some of the fear is just to be truthful and to tell our story and to hope that we continue to make the right decisions. And I certainly think with the great work that this committee is doing, we're so happy that, and especially after meeting with so many of our colleagues across the state of Ohio, that to think about putting packaging together to help them analyze the real questions and decide what's right for them and help them filter out the fear-mongering will just ensure that we're protecting our position as a state that, you know, is recognized internationally for where companies want to locate.
Representative Blasman, oh, sorry, follow-up? I'm sorry. Follow-up. My apologies, Chair. Thank you. So I guess a lot of times that decision falls to the local officials, and it could mean a continued position as an elected official or being unseated, losing your job. What would you recommend to people who are in that position?
Chairman Chavez, Chairman Holmes, Representative Workman. Transparency is always the key. and so I think that elections ebb and flow and public sentiment ebbs and flows I know a little bit about what it's like to be an elected official but not very much, I was on a school board for a couple years and I think there's always that fear of not getting elected again but what we found in New Albany over the last 21 years is we've worked with an amazing mayor and group of council and our foundational element is that strategic plan So the more planning that communities can do, the more support for planning that comes from the state, the more support for planning that comes from regional organizations like Morpsey, our elected officials can at least rest easy knowing that this plan has been something that's been taken through a public process and has had extensive public review and has been adopted in a very public way. And so the best advice I can have for anyone in an elected position any time is transparency, transparency, transparency. And the amount of planning that you can do ahead of time and bringing that out to your constituency in order to have them approve it. I think probably the challenge is some of these projects are moving faster than what some of these smaller communities can plan. And so I'm saying all this sitting in a position of a planned community. but there are ways I think to continue to be transparent though with the process and to share information and really try to separate out what are the questions that we should be answering for success for our community and what are the things that are just not true.
Representative Glassford. Thank you Mr. Chair and I'm going to hit the NDA question another time. Sorry. So in the city that I used to serve with, our use of NDAs were primarily around what I would call the site selection phase of economic development when the entity is trying to acquire land, but that we really didn't have a lot of use for it after that juncture. Is that the same with data centers? Is there a reason why, other than national security or very isolated trade secrets, why most of these projects can't be public information after site rights have been acquired?
Chairman Chavez, Chairman Holmes, Representative Gossburn. The information that you're exactly right, so we use the NDAs in exactly the same way that you described. with the exception of the information that trade secret and national security we sharing all of the NDA our NDA puts them on notice that their documents are public record absent that type of redaction. And so if somebody's going to come in and request information about a data center or any industry, I think the first reaction of any industry, in my experience, and you may have experienced this as well, is no industry wants to share what they have, right? They're worried about trade secrets. They're worried about their plans getting out there. It doesn't matter whether it's a manufacturer or whether it's a data center. I think making sure that you're putting any industry on notice, that this is our obligation to keep this confidential. We're not going to go and talk about this project through this NDA, but that there's certain information that is going to be subject to public record, and you're going to have to follow the steps of public record law. And if you can meet those thresholds and those requirements, then things can be redacted. If you can't, then that's the information that we're going to provide. And so we get requests for information on data centers in particular all the time. And we send it to the data center company. Their attorneys take a look at it. They redact what they believe meets the letter of the law. Our city attorney reviews it. And we submit it with the appropriate citation, exactly how the law would require us to do that. And we give that information. And so it might be site plans. It might be, you know, whatever the piece of information is that's requested. So I think that following the law is the answer for everyone, and using the NDAs as a part of the site selection process ultimately protects the integrity of the economic development competition.
Follow-up? So last year the state expanded NDAs and put criminal penalties for violating NDAs. Was it necessary to keep your local officials online online following, you know, your, your, and your staff following NDAs to have criminal penalties or were they able to maintain NDAs before that?
Chairman Chavez, Representative Glaspern, we were able to maintain NDAs before that. We didn't. Hello? Thank you.
Any other questions from the committee? All right. Well, Chairman Holmes left at the wrong time. He gave me the gavel back. We thank you very, very much for your time, your information, your knowledge. I think this was very, very informative, so thank you very much.
Thank you.
Thank you. Next up, we have Tiffany Hollis from Johnstown. Welcome to committee. You may begin when ready.
Do I need to wait for the time? Co-Chair Chavez, Co-Chair Holmes, and members of the Select Committee, thank you for this opportunity today. My name is Tiffany Hollis. I'm the mayor of the city of Johnstown. But before I was mayor, and still today, I'm a small business owner, a Main Street merchant, and a lifelong resident of Johnstown. Born and raised right here in the great state of Ohio. I want to be clear from the start. I'm not here to defend any industry. I'm not here as a spokesperson for any company. Part of why I'm here today is that before I was elected, multiple members of my immediate family were directly impacted by the Intel project. That firsthand experience is what led me to run for public office and ultimately to me standing before you today. I grew up in Johnstown, not nearby, but in Johnstown. I know which roads flood first in a storm. I know which storefronts line which Main Street Names, the families who built them. We don't say turn left at Main Street. We say turn left at the Ashbrook House. I know the three generations of farmers who worked the same ground and the family trees that built this city and continue to grow here. Thirteen years ago, I started a food truck. Ten years ago, I sold everything I had to buy an old, failing building on Main Street that had been a restaurant in our community for over 100 years because I believe in the power of people and the value of community and what happens when you roll your sleeves up and bet on both. Grit, determination, beating the odds, that became Dashing Diner on South Main Street. Then on the heels of the pandemic that told the world to stop gathering, I invested in another old building in need of repair, renovated it, and opened to gather an event venue right next door to the diner. Another bet on the power of people as a collective, some bets you just know are worth making. Every one of those decisions required a plan, A five-year plan, a one-year plan, sometimes just a 90-day plan, but a plan, and an ability to make those decisions for ourselves, exactly what creates the opportunity to be successful. Small business owners live and die by the ability to see around the corner. We sign leases, we hire people, we take on debt, we make bets on the future for our communities that only works if we have enough information to make informed decisions. For years now in communities across the state, that information has not been available. I ran for city council because of intel. Before the project was ever publicly announced, land acquisitions were already underway in our community. My family was among those directly impacted, and nobody, not the state, not the developers, not the local officials at the time, would give us straight answers. As a small business owner, I couldn't make a five-year plan. I couldn't make a one-year plan. I couldn't even make a seasonal plan. Everything went into survival mode. Pivot and react. Pivot and react. And I want you to understand that it's not sustainable. It's exhausting. It's expensive. and is happening to small business owners across the state right now in every community where large-scale development has arrived without transparency. What I watched happen in Johnstown in those early days was entirely preventable. When people don't have information, they fill the vacuum with fear. Rumors spread faster than facts. Neighbors turn on neighbors. Decisions get made reactively rather than thoughtfully. Families and business owners alike start making life-altering decisions based on things that aren't even true. The ability to see around the corner, that is what every family and business owner, every elected official in the state deserves. It's the entire point of why I'm here today. Let me be direct about what Johnstown is dealing with. We are a city with real infrastructure pressures, roads, water, sewer systems built for a different era. When large-scale development arrives, the infrastructure feels it immediately. During construction, before a single dollar of the benefit has been realized, that gap between the strain of development and the benefit from it is real. I'm living it. I'm watching it. I'm watching residents sit in traffic on roads that were never designed for construction equipment. When Collogix came to Johnstown, we were not passive recipients. We engaged. We asked hard questions. We negotiated. And we insisted on this project become a part of the fabric of our community, not just a facility that happened to be located here. The numbers tell part of the story. $7 billion committed to 154 acres in the city of Johnstown. One minute. The largest industrial investment the city has ever seen. Let me skip ahead. Top-down restriction, whether regulatory overreach or elimination of economic tools like the sales and tax exemption, don't protect communities. They disarm them. That exemption is not a favor to a company. It's the chip local governments use to get investment to the table and keep it there. Take it away and you haven't protected anyone. You've handed the leverage to every other state that isn't pausing. A community that can compete for development doesn get better development It gets no development Do not implement a moratorium A moratorium does not pause development It hands leverage to every other state. Ohio communities that have already done the hard work of engaging, negotiating, and building relationships with partners will lose the ground overnight. Do not let that happen. Every decision I make as mayor, I make with a face in mind. A neighbor, a business owner, a kid that grew up that's deciding whether to stay or go, they're not asking for guarantees. Thank you, ma'am. Thank you, ma'am. That reaches the five
minutes. So in summary, I'll just ask this question. What's a good summary for your statements? And you have good information here. Chairman Chavez, Chairman Holmes. A summary, I give the
power to the people. These decisions need to be made locally, not by a blanket legislation from a state. What's good for Adams County isn't good for Licking County. What's good for economic failing communities may not be good for communities that are environmentally sound. So give the power back to the people locally. We've recognized that certain counties or communities are better equipped to handle the scope and size of this than others and maybe the state government can help and assist those that need help in those districts.
Committee, any questions? I think very clear what you said, ma'am. I'm just going to read it again. Build frameworks that demand transparency. We've heard that word a lot. Meaningful community engagement, and those are good words. And equip and empower. Yes, ma'am, thank you.
Thank you for your testimony.
And the written testimony was also submitted previously. We'd now like to call Mr. Brian Stewart from the Superior Group. Thank you for coming. Welcome to committee, sir.
Thank you. Chairman Chavez, Chairman Holmes, members of the select committee, thank you for the opportunity to testify today. This committee's work is really important, and I can offer a unique perspective because our company has been part of the data center industry since the 1990s. My name is Brian Stewart. I'm the CEO of Superior. We're an electrical design and construction firm based here in Columbus, Ohio. We've been building throughout Ohio since 1925 and celebrated our centennial last year. Over the past century, we've helped to construct many landmark projects across the state. And today, data centers represent a significant part of our growth and success. Largely because of data centers, Superior has grown from approximately 300 employees 15 years ago to over 3,000 employees today. Last year alone, we paid more than $142 million in wages and benefits to our employees here in Ohio. These data centers have truly helped to transform our organization, and our company is now one of the largest and fastest-growing electrical contractors in the entire country. That's why it's concerning, obviously, to me, when we hear our clients expressing their concern over whether Ohio maintains committed to attracting and supporting this great industry. And in a time when, and we've talked, others have talked about it too, when states across the country are competing for these investments aggressively, Ohio needs to be asking how we can continue to take the lead. Data centers are a major source of employment and economic activity. By even the most conservative estimates data centers are collectively a top 25 employer in our state today And these jobs last for many many years I'll give an example. Superior's worked continuously on one single data center campus in New Albany since 2018. That project alone has generated approximately 3.5 million labor hours and more than 3,000 consecutive days of work. There's nothing short-term about that sustained level of economic activity. And these are great jobs. A journeyman electrician who has completed a four- or five-year apprenticeship earns approximately $149,000 in annual wages and benefits. And because data center projects provide steady work and overtime opportunities, many earn well over $200,000 a year. If we're serious about strengthening Ohio's skilled trades, expanding the middle class, and creating pathways to prosperity for working families, data centers are helping us achieve all of these goals. The impact, though, extends far beyond any single job site. Hundreds of Ohio businesses, including architects, engineers, developers, contractors, manufacturers, distributors, and others all depend on the data center ecosystem. In recent years, these companies have hired thousands of employees and invested in their own organizations because of the opportunities created by this industry. If data center development slows, the ripple effects will hit across Ohio's economy because companies will simply take their projects elsewhere, along with the jobs, investment, and tax revenue. Policies that discourage data center growth do not primarily harm tech firms. They harm Ohio workers, Ohio contractors, and Ohio businesses. And while companies like mine, Superior, have the ability and the scale to serve clients across the country and pursue those opportunities elsewhere, many don't. And so those Ohio-based businesses located here, those businesses and their employees are the ones that are going to bear the burden most. On the flip side, Ohio has a generational opportunity. One minute. We have the opportunity to support American innovation, strengthen our grid, and create high-paying careers. And we've, as others have discussed too, we have proven that we can win. We should continue to collaborate with the data center industry, certainly address challenges, but make sure Ohio remains a destination for investment and innovation. If we do so, we'll build a stronger economy for future generations. If we don't, these opportunities will simply go elsewhere, diminishing what is decades' worth of work to get us here. from economic development. It was so aspirational to envision clients like this coming to Ohio 20 years ago. And then the hard work and boots on the ground of firms like ours to build the capability to serve them so that they keep coming back. I don't want to squander that opportunity. And the growth potential in the future is tremendous. I appreciate your leadership and attention to this issue. Thank you and be happy to take any questions.
Thank you, sir. Committee, are there any questions? Seeing none, sir. Oh, I'm sorry. I'm sorry. Co-Chair Chavez. Sorry, I came in late on that one. Try to give everyone else a chance to talk. So we hear a lot about, thank you for your testimony. We hear a lot about construction jobs are just outer towners that come in, swoop in, and then leave. But you said you've been on the New Albany campus since 2018. So can you expand a little bit on how many of your folks are local folks?
The vast, vast majority of our folks are local folks.
Yeah. There are some contractors who may do it differently. and certainly there are inbound folks that would be in any state to serve this type of projects These type of projects we often find that they stay The longevity and the opportunity for our employees is so tremendous There is no other client base that could fill the void of opportunity created by data centers in our industry. None. Actually, not even close. Data center construction would represent the vast majority of construction today. Now, that's not particular necessarily really to Ohio. That's common across the country. But what we have is we have visibility into these jobs, working with our clients. So they're not talking about building a building. They're talking about a 10-year plan. When they build a campus, it goes on and on, and typically picking up then more locations in the same general area and developing plans for that campus build-out. So that's why we've seen so much growth, and that's why we're able to attract great people to those opportunities. Follow-up?
Well, thank you, Mr. Chairman. So expand on that a little bit, because whenever folks, you know, you've been on campus for eight years or whatever, they think that there's more and more buildings going up. So as we've learned here, can you expand a little bit what you mean that it's not building more buildings?
Oh, it is building more buildings. Sorry. Chair Chavez, thank you. It is building more buildings. So typically we have that if we're entering into a discussion with a client, we understand what their plan is for, say, the next eight to ten buildings on one single campus. Now that changes and fluctuates, obviously, given their needs, but we have general visibility into what that looks like. The additional opportunity is once a building is finished, there's service, there's maintenance, and then I think, as Jennifer discussed, there's retrofit opportunities. So we're coming back and constantly in cycle working in that facility because technology changes. So the electrical infrastructure may need tweaked or changed dramatically, and we may be back in building one two years later. And then we're constantly providing service activities.
One more follow-up. Follow-up? Thank you, Mr. Chairman. Like I asked the previous witness, can you tell us a little bit about the local ecosystem, how it impacts? because you're getting your tools and your parts and things. I mean, is that all helping Ohio, or how does that affect it?
I mean, the majority of it is bought from distributors in Ohio. We have, obviously, with Vert of the large manufacturers, very active in this space right here in Ohio. We do get parts and pieces from other areas of the country also, but we tend to work with the vast majority of our vendors are locally based. And it extends, again, it's tool rental. It's equipment that we're purchasing. It's the parts and pieces, the conduit and the wire that we're purchasing. And most all of that is running through local distribution. Thank you.
You're welcome. Sir, I wanted to ask a question. I had heard before, due to the explosive growth, do you have your own training program, internal training program, designed to support data centers? How does that work?
Chairman Holmes, so we're fortunate. So we're a signatory contractor. So in partnership with the IBW, we work with them on their training program that's a part of all of our employees' apprenticeship and education. But then, yes, Superior does have internal training on top of that, and a lot of it is very specific to this industry. This work is – our people love this work. That's another thing. They really love it because it is technically challenging and demanding. They love knowing that there's so much opportunity out ahead. but because it's technically demanding and challenging and each particular their client has their own requirements, we have found ourselves developing our own supplemental training that is very client-specific in how we do things on sites. Yes.
Representative Glassburn.
Thank you, Mr. Chair. And following up on Chairman Chavez's question, if the incentive packages remain the same but sales tax was no longer a vehicle, Would that change your buying behavior in terms of where you procured materials and equipment?
Chairs and representatives, it wouldn't change our buying behavior because the sales tax liability would flow up through the customer in the state. So it really wouldn't change our buying behavior. Now could it change the site selection behavior of our clients at the end of the day? It could. I think that comes back to, again, the competitive dynamics between other states and Ohio. It is a highly competitive environment. We have earned the right to be a leader in this space, for sure, but there are other states making inroads, as I'm sure you well know. So I think anything that we do to disincentivize that we've already offered to that type of client, and that they've proven their commitment then back to Ohio with the investment of tens of billions of dollars that we've seen. I think anything we do retroactive to that type of commitment certainly poses a risk.
Co-Chair Chavez.
Thank you, Mr. Chairman. I'm going to follow up to the follow-up to the follow-up. Who's making the decisions to purchase the new servers that go in? And our understanding is that's a very expensive piece on the interiors of these buildings. Who's making those decisions, you or the data centers?
No. That would be the clients, the ultimate clients, so the end user is making that choice in what they're doing. Our primary services, we're providing all of the electrical work from, say, the substation in on these sites and inside the buildings, all of the conduit and wire, all the equipment and the infrastructure required to power the facility, and oftentimes, say, the communications cabling that goes to the server. Our work as the electrical contractor generally stops at the server rack, and that's all done by the client. Thank you. You're welcome.
Any further questions? All right, seeing none, thank you, sir. Thank you for your testimony.
Thank you so much. Appreciate the time.
We'd now like to call Mr. Brent Stevens, Van Wert area, economic development. Thank you, sir. Welcome to committee.
Thank you very much. Chairman Holmes, Senator Chavez, committee members. I just wanted to show up today. You have my testimony that I've supplied to you all, but just really tell Van Wert's story. We recently just signed a data center in our community. It's a $10 billion plus project. QTS is the end user that is coming to Van Wert. And I wanted to talk about our experience over the course of the last two years. We were identified as a site of interest by one of the site selectors and have been since working with the developer for the last year and a half, two years. And we all along made mention to our developer that water was super important to us, that we needed to be able to communicate that to our community, that were not going to be taking their water, noise and all of the things that you hearing being a problem in data centers was communicated to this group And so we been very transparent with our community A year and a half ago, I made a commitment to the developer that we wanted to let our community know that this was going to be a data center that was coming. And we shared that information. And we had very little pushback. Very little pushback. We've had 36 city council meetings in the last year and a half. We've had eight regional development meetings in the last year and a half. And we had a few oppositions and some roads that were potentially being shut down. The main purpose of me being here today is within the last three months, three to four months, there has been a tremendous amount of pushback that just all of a sudden popped up out of nowhere. And I am not one that just figures that that's just going to stay. I want to find out where it's coming from. So I started to do a lot of digging. And Facebook seems to be the primary avenue for this negative information to be purveyed to our community. And unfortunately, we have several people that were constantly reposting, reposting, reposting. And the vitriol continued to increase and continued to increase. Excuse me. And I found out, as I started to dig and find out where these posts were coming from, several were coming from one NGO out of Washington, D.C., by the name of Green America. And as I dug into their particular ideology, they believe that fossil fuels and nuclear energy is a no-go, period. That's it. So they started, what was the most way that they could get the most amount of impact? was to start to attack data centers. And in 2025, and the sources and information I've given to you, in 2025 they started a dirty data campaign. And that dirty data campaign spent millions and millions of dollars on Facebook trying to purvey the negatives of data centers to try to get the data centers to put solar panels on everybody's house, batteries in everybody's houses, to supply then the data centers with the power from solar and wind versus from fossil fuels. And I found this to be very disturbing that they're spending so much money on Facebook. And then as you start to hear other stories of a project that's going on out in Utah, where there's also exterior influence from outside of the United States that is amplifying that negative information as well. And so for me personally, that was my reason to come here today is to let you know that the negative chatter that is taking place on Facebook and the social media is not all grassroots like you think that it is. And it's unfortunate that we're in this day and age that we're having to defend ourselves because this project is transformational for Van Wert. One minute. And this is a mega site that we have had for 20 years. And now we have a really good partner in QTS coming to Van Wert and building a data center. But yet now we've got this negative information that we're having to combat at the local level. And we're just trying to come to you and make you aware that this particular issue is at hand. and I know that you experience it as well. But we thank you very much for your time and your support in this particular committee and hope that you come up with the best determinations possible Thank you sir Thank you for taking the trip Committee I start for the left Any questions
On the left, Rep. Glassburner.
Is QTS affiliated with one of the big four of Amazon, Google?
QTS is Representative Chavez, Chairman Holmes.
Representative Glassburn.
They are what is considered to be a co-locator. So they build the facilities, and then they will have potentially some of the big hyperscalers locate there. They could also potentially have governmental entities locate there and different AI individuals being located at their facility.
Follow-up? Thank you, Mr. Chair. So if we made policies that disproportionately harmed data centers that are not in the Big Four, would that hurt your project?
Chair Chavez, Chair Holmes, Representative Glassman, thank you. 100%, it would be a negative impact on our project. The Big Four aren't looking at going everywhere. and in the smaller communities, these are sometimes the only opportunities that we have for significant transformational economic development. I believe that the pause on the data center tax exemption puts us at a competitive disadvantage. There are 37 other states throughout the United States that have data center tax exemptions. It doesn't mean that they shouldn't be adjusted and brought to more current times, but it would definitely give the site selector, and that's how they look at our facilities. It's the site selector making the decisions. Does it check this box? If it doesn't check the box on the incentive side of things, then we may get passed over and we won't even know it. Thank you.
Co-Chair Chavez.
Thank you, Mr. Chairman. How long did you say you had a data center in your area?
So we just announced QTS two weeks ago, the night or the, excuse me, the day after the data center tax exemption that was announced. So we're in the process of bringing that to breaking ground and starting building within the county and the city of VanWort.
I misunderstood. I thought you already had one in your community and this was a new one. I apologize.
No, this is our, excuse me, Director Chavez, this is our first data center that will be coming to VanWort.
Follow up. So what are the negative aspects that have recently come up in the last couple of months?
Chair Holmes, Representative, or Senator Chavez, thank you very much. A lot of the negative questions that have been coming up have been water-related, have been noise-related. QTS is a company that has committed to a closed loop system. That is what we've been really trying to make sure that we bring to our community, where it's basically a one-time fill and it can run for the next six to seven years without ever having additional water added to it. But the negative things that have been coming through Van Wert is that we are going to be dumping nitrates into the water Well data centers don generate nitrates They don put anything into the groundwater A data center of this size will have regular toilets and water for their inside just like any other office building would have. But that all goes back to our wastewater treatment plant is treated to EPA standards and then is released. Noise is another big issue. And every data center is not treated the same. If you have a closed-loop system, you're not doing the evaporative cooling, which are a lot of louder type of noises that are made from data centers. So people wouldn't believe us, even when we stood up and let them know, here is the process. We went to very specific lengths. we created a website that had a city council that provided 135 questions to my office that we answered, that we put on the website, so we could answer all those questions. The problem is that the noise of Facebook, they did not believe the information that was provided to them. Thank you.
Senator Blackshear. Thank you, Mr. Chair, and thank you so much for your testimony. You talk about the negative chatter. I guess my question is, has there been any proactive steps to sort of ease some of the negative chatter that you've seen online or elsewhere?
Chair Holmes, Chair Chavez, Senator Blackshear, thank you. Yeah, we have done a lot of things, I think, to try to ease that chatter. We created a video, which I've provided to you in testimony, that has a lot of the people within Van Wert from all economic levels talking about how they feel that this project would be beneficial to our community. We put up a website that's been up for three months to answer any of the questions that they could potentially have. and we actually ask constituents to come into my office, sit down and have a real conversation about their specific concerns and any time that that happens, we sit down and we have at length conversations to try to ease those questions. We have people from Troy, Ohio and Toledo, Ohio and Fort Wayne, Indiana and Lima concerned about Van Wertz Data Center And we've sat down and talked to all of those people, even though they don't live within our community. We find it interesting that there are people from outside of our community so concerned about the decisions that we're making within our own community.
Just a quick follow-up. Yes, sir. Follow-up. So has there been any, like, community meetings? Have you all been able to let the residents see exactly, hey, this is the investment that is happening in our communities? the impact that you're feeling every day? Like, has things like that happened as well outside of, like, the Internet, social media, the videos you all posted?
Chair Chavez, Chair Holmes, Senator Blackshear, thank you very much. Yeah, so to answer your question, we're kind of in the early stages. We do have a big meeting this Thursday at Vantage Vocational School for the community, and for lack of a better term, we call it a science fair. So when the people come to Vantage Vocational School, they will have the opportunity to go from this table to talk about the closed-loop system, to go over to talk to some representatives. representatives from AEP to talk about energy and what that means to them, to be able to talk to their community engagement group where they do all kinds of community engagement with different charitable organizations within the community. The one thing that is exciting to me that we've shared with our community also is the fact that Vantage Vocational School, which is a very big trade school within our county, has teamed up, is in the process of teaming up with QTS to create a customized curriculum that will allow the students to go directly from Vantage Vocational School, which, by the way, the data center is directly across the street from them, and will be able to stay in our community, learn in our community, and then go work in our community.
Any further questions? Sir, just one I had from you. You heard today from Ms. Chrysler about the information toolkit, and you're a perfect example for others in the state with a brand new agreement set up. Did you feel as a community equipped to transact an agreement of that scope and size, were you prepared for that? Do you feel like you got a good deal for your community?
Chair Holmes, Chair Chavez, thank you very much for that question, because Jennifer Chrysler has been invaluable to our community. Did I feel like our community was set up for that? No. We're a small community, just like New Albany was 15 years ago. We're 11,000 people. We made sure that we were going to cover ourselves by hiring excellent counsel, by hiring Vores and Brickner, to make sure that we were covered and they have dealt with this type of process before. but Ms. Chrysler and her team invited us down. We kind of swept in maybe a little bit bigger group than normal. We brought in an entire bus full of people, 57 people, and had an opportunity for them to take us on the tour. We stopped at Edge facility. All of our folks got out of the bus, and they thought that the facility was under construction. because it was so quiet. It was, in fact, running. It was a closed-loop system that was running. That's what we wanted them to hear. So the fact that she and her group spent that time just with our community, and Lord knows that they do it multiple times a day, every day a week, to help the whole state of Ohio without any benefit to themselves, I think is very, I just can't speak enough to just how much appreciation goes to their group. But she provided us with that whole packet. That whole packet resides with our council. And we've taken, I would say, most of that information and used it, and then we've added some additional information that's more specific to our county. Thank you.
Committee, any further questions? Seeing none, thank you, sir. Thank you so much. We'd now like to call Mr. Matt Salazi from the Affiliated Construction Trades Ohio Foundation.
Welcome to committee, sir. Thank you, Chairman Holmes, Chairman Chavez, members of the Joint Data Center Committee, thank you for the opportunity to be here today. I appreciate it ACT Ohio represents 100 men and women who work under the umbrella of the Ohio State Building Construction Trades Council Our collective intent here today is to cut through the BS that data centers in Ohio do not create jobs We are here to emphasize the thousands upon thousands of building trades jobs that have been created and maintained by the 50-plus billion dollars invested in Ohio over the past five years to build and regenerate data centers. To provide some scale, this level of investment dwarfs the total investment to date in Ohio's two largest construction projects in its history, Honda LG over in Fayette County and Intel Fab One. Now opponents will say, well, these are temporary jobs. and completely discount the impact that our members in the construction industry have on the state of Ohio's economy. It's offensive. Tell these folks, tell our members that their jobs don't count or that they don't matter. Talking about this begs the question, what's in it for the building trades? What's in it for construction workers across the state of Ohio? Pretty simple. the opportunity to work. Our members want to go to work every day and provide for their families. The trades are an hourly workforce. We don't work, we don't get paid. On an annual basis, 75 to 80 percent of our work is private sector work. The results for working class people in the state of Ohio speak for themselves. Because of this investment, Ohio is reestablishing its middle class with both career paths and wage growth. You'll see in my testimony apprenticeship growth over the past 10 years has risen almost 70% in the state of Ohio, according to Ohio Department of Job and Family Services. Wage and benefit growth, we attribute almost a 61% increase in the number of apprentices, and you will also see in there what we attribute in just the past five or six years in terms of wage growth in the state of Ohio as well for construction workers. And again, we attribute much of this upward arc in wages and benefits to data center construction here as well. Demand for workers in the trades is skyrocketing. Applications to our apprenticeship programs are skyrocketing. Wages and benefits are increasing. We have four times as many women in our apprenticeship programs today than 10 years ago, an increase of over 280%. Ohio was number two in the country last year in the number of veterans joining the trades, with almost 900. One of these proud veterans is here with us today, Dylan Marple, U.S. Army, 173rd Airborne Brigade, 1st Battalion, 503rd Parachute Infantry Regiment, and proud IBEW Local 1105 Electrical Apprentice. One of, as I mentioned, hundreds upon hundreds of such examples in the state of Ohio. And you'll also see written testimony from Samuel Ramirez, Brett McElfresh, and potentially others. Our message is, don't fall prey to the false reality being perpetuated by social media influencers that data centers don't create jobs. This is the reality. In 2025 the building trades had thousands of members working on or in data center plants across the state of Ohio Great middle jobs for Ohioans with good wages health and dental insurance top retirement and investment in apprenticeship safety and journeyman skill upgrade trading. The bottom line is the legislature has done incredible work, exceptional work, creating a world-class business climate here in the state of Ohio, as Ms. Chrysler mentioned, and what a rock star she is, by the way. We're winning. Ohioans are winning. Blue-collar workers in Ohio are winning. And we point at data center investment and that private sector investment as one of the root causes. But in order to keep winning, we have to stay competitive. We cannot go backwards. We cannot go backwards. Thank you for your efforts to learn more about this incredible opportunity. We have to continue to transform the lives of working-class Ohioans. I'd be happy to take any questions if there are any.
Thank you, sir. Thank you for your testimony. We'll start to the left. Committee, are there any questions?
Representative Glassburn. Thank you, Mr. Chair, and thank you, Mr. Slasey, for being here. So as I see this, there's two different questions going on. There's the impact that data centers have had on our utility rates, specifically electric. And then there's the question of data centers themselves. Are they good for communities? Are they impactful? Your members, let me address a second. Your members work in all kinds of facilities across the state, factories, I mean, all kinds of operations. Can you give us some perspective as to these data center jobs, both the construction and operation, where they rank in terms of environmental and how clean of a job it is, so to speak? Thank you.
Through the chair, Chairman Chavez, Chairman Holmes, Representative Glassburn, excellent question. I can answer it this way. For generations, our state was built on heavy industry. Steel mills, cokers, coal-fired power plants, heavy manufacturing supported thousands of middle-class jobs. And we all know the history on some of these industries that were similarly attacked, the way we're seeing attacks across the state of Ohio right now against data centers. The gentleman from Van Wert, I thought, made some very intriguing points, something we all suspect that this is being, in part, generated from somewhere. Somebody's got an agenda. And our members' jobs are not at the top of their list of priorities. I can say that unequivocally. But we just did, it wasn't maybe a month ago, we went and did a walkthrough of a data center just south of Columbus off of 23. if you would see the cleanliness of the site, permanent restroom facilities that you have to badge into because the emphasis on those facilities being sanitary, clean, and accessible. They mentioned that they serve the entire campus, over 1,100 workers, lunch twice a week. I said, you do what? Yeah we want the workers to feel good about being here If you would see the young people as we did that walkthrough working on racks pulling cable security finishing cement Phenomenal. And I would just implore you, I know this committee is doing tremendous work, but for your colleagues,
they need to get there and see that because this is what we want to promote, not what we want to chase to other states. So the work sites themselves, Representative Glassman, are phenomenal. Follow-up?
Thank you, Mr. Chair. I've had family members and friends in the trades, and I've heard tales of them going to projects out of state for years. Part of what we've heard with this is that the jobs are for people who are out of state coming to Ohio. Can you speak to that issue and as to whether it's Ohio workers working in Ohio and how it impacts your members?
Where were they working before all this started?
Yes.
Again, through Chair to Representative Glassburn, I can also say that great question. In our industry, the investors, the owners, want one thing from the trades and our partner contractors, and that's certainty. They want certainty in cost. They want certainty in terms of the timeline for completion. They want certainty with respect to the quality of the workmanship. in construction when you see it's a cyclical industry we are on an upward trajectory which we're very very profoundly thankful for profoundly thankful in construction you have to have the ability to scale up and scale down that's just to meet demand supply and demand that's the nature of it we invest $40,000 to $50,000 on average in an apprentice. Getting an apprentice, he or she, through four years of apprenticeship training, depending upon the craft, that range differs. But we like to have that certainty, too, because if we're going to invest that kind of money in a young man or young woman, we want to know that there's going to be a place for that young man or young woman to go to work here in Ohio. Do we, in times of very significant sharp scale-up, does that draw members from out of state? Of course it does. But it's supplemental. It's not primary. It's supplemental. Our ultimate obligation is to meet the needs of our partner contractors and our owners to make sure projects are completed on time, on budget with the highest degree of workmanship. That is our ultimate goal, and we will scale up and scale down as needed based on project supervision. Follow-up?
Thank you, Mr. Chair, and I'll be my last for this. I've hit on with a couple, or at least one previous witness, that there's, again, somewhat of a bright line emerging of the big four companies versus the rest of these facilities. Do your members work on both types? If we were to make policy changes that disproportionately hit one type over the other, do your members work at both sites, and would they
impacted. Through the chair, Representative Glassburn. We work for them all, and we appreciate the opportunity to compete for their work. We are not in any way, shape, or form interested in any policy that makes it more difficult for Ohio to attract this investment. And if regulation has to occur, I mean, we trust that you will do so and you will do so responsibly. But for us, the bottom line, the equation starts and stops with jobs. Our members' jobs are paramount to us. The opportunity for our members to go to work every day, and they may not be all over Facebook. They're not social influencers. You don't have time for that. Our members work. But the expectation and the hope is that our leadership, our legislature, will continue doing what you're doing, which has been phenomenal. Is it any interest that the world's top companies want to invest in Ohio with what you've done on income taxes? scaling back the cat tax. Phenomenal. What you've done is absolutely phenomenal. And at the end of the day, of course, companies want to invest here. We don't want to see the state of Ohio go backwards on this level of investment. If you need to put some guardrails on it, make sure, you know, in terms of local communities, we want them to get every penny. That's easy for us because our members live in those communities. Get every penny for them. Help them. I mean, it sounds like it's already happening, but we're all for that. We just don't want to see any disincentives put in place that cause projects to go elsewhere.
I'll go ahead and follow up on a couple of those things. I thought Representative Glassburn did a great job on it. But it seems to me that there are intangible benefits for your members to be working locally, right? So they're not having to travel out of state for the week. Is that a fair statement?
Chairman, it is an incredibly accurate statement. You'll hear testimony from our president of ACT Ohio and the state building trades that makes mention of the fact that southern Ohio, down from Portsmouth, workers have been driving hour and a half, two hours for some time, you know, to Columbus, central Ohio, where the bulk of this work was located. We love the idea of Piketon. We love the idea of Marietta. We love the idea of Van Wert and Wood County and northeast Ohio for this level of investment, and we're seeing it. I mean, we're fighting those battles with some of the misinformation out there, but we'll win on those. We will win on those. But the idea that one of our members doesn't have to drive two hours to and from work every day or make the investment in a verbo for eight months, nine months, ten months, and spend Monday through Saturday away from their families or Monday through late Friday away from their families that very attractive to us and our members So yes very much we want to see that investment widespread throughout the state
Thank you. I didn't mean to spoil a future testimony. I should have spoiled an alert on that one. Probably be all right. The question has come up several times, and Representative Glassburn hit on it as well. Well, the incentives, the sales and use tax abatement, there is a thought that these data centers are going to come here because of all the great things in Ohio anyway, right? What is your opinion from the Construction Trades Association of if we zeroed out that tax, would the investment still be happening here in Ohio?
Through the chairman, in response to your question, construction is ultra-competitive industry. Our contractors compete for work every day, compete with other union contractors, non-union contractors, out-of-state contractors. Competition is inherent in what it is we do. It's ultra-competitive. We also understand economic and industrial development and fully understand what happens if Ohio puts a specific industry in a competitive disadvantage with other states. The reality is we lose projects. We lose the opportunity for our members to go to work, as explained and described. That's not in Ohio's best interest. I understand that there are a lot of challenges out there, a lot of misinformation. I think this committee has done exceptional work and has asked exceptional questions. I've listened every minute. But the bottom line is we're asking you to do what's right for Ohio to remain competitive against other states.
Thank you for that. One other question on the construction trade. So we're obviously very focused on data centers, but we also talk a lot about power generation. Does your constructor trades, they also work in that industry as well?
Chairman, you know we do. Enormous, enormous market for us is energy generation. And I know that there will be a series of hearings and a lot of attention paid to energy generation in the state of Ohio. We can't wait. our approach is all of the above we've got a ton of ideas on how to accelerate permitting how to accelerate energy generation or production in the state of Ohio a ton of ideas starting with let's look at every oil combined cycle oil generation natural gas generation facility double its capacity let's do it Let's get some of these permitting challenges and appeals on utility-scale solar ironed out so that we can get some of that generation on the grid. We know what we have to do. We have to iron out the wrinkles with respect to these challenges and appeals and permitting delays and all this stuff. We have the authority and we have the power to do it, and I know we have the insight and the desire to do it. It's just a question of now the time We need the energy generation Rather than put up obstacles to future users let focus on generating more capacity to the point where we're not only meeting the needs of large-scale and every residential user in the state of Ohio lowering bills. I mean, we'll get to a point where we're, you know, a massive exporter of energy. We have the capacity to do that. So I look forward very much to that discussion, but you hit the nail right on the head, Chairman. Energy generation is key. Thank you for that.
It's not my gavel day, so Chairman Holmes is making sure he gets back. Any other questions from the committee? Senator Blackshear.
Thank you, Mr. Chair, and thank you so much for being here. Always great seeing you. Just two quick questions. You sort of alluded to it in your testimony, but how many construction jobs does the typical data center create in, you know, for how long are those jobs held?
Through Chairman Holmes and Chairman Chavez, Senator Blackshear, good to see you as well, my friend. Excellent question. generally speaking, rule of thumb, 250,000 square foot data center, you're talking anywhere from 1,850 to 2,000 building construction trades jobs at peak. So obviously as you scale up from there, like we're seeing down in southern Ohio with the two 800,000 square foot buildings in Scioto and Adams counties, that gives you an idea that you're scaling up from 2,000. at that point. And then scaling down somewhat as you talk about some of the smaller plants that we've helped construct and helped to maintain across the state of Ohio. And then the other point I want to make on that is, and it was touched on earlier, we call it regeneration. I mean, when you're talking about these data center plants, that technology becomes obsolete in three to four years. All those systems, I mean, are replaced. We call it regeneration. I mean, it's phenomenal work for the building trades. So it's kind of, from a work standpoint, the gift that keeps on giving. You know, and again, not to belabor the point, but a lot of the people that are complaining about data centers are the same people that complained about coal burners. You know how many thousands of building trades workers worked on coal burners in the state of Ohio over the years? You know, come on. I mean, people have to work somewhere. These are great jobs. Yes, sir.
Do you have a follow-up?
Yeah. Quick follow. So thank you so much for that answer. And then, like, after a data center is built, how many permanent union jobs are created as a result of it?
Through Chair Holmes and Chavez, permanent union jobs by the owner varies. Typically what happens, Senator, is you heard from the CEO of Superior Electric. The more likely scenario is superior electric as they have in New Albany just using them as an example They stay in contract with that owner and provide those maintenance services and ongoing regeneration work at those facilities So the replacement of racks, the replacement of servers, all the retrofitting to make the new systems applicable. and obviously time is money, you know, in terms of whether it would, it doesn't matter what industry you're talking about, you don't want downtime. So having a contractor and a workforce that has familiarity with those systems obviously makes a big difference in terms of achieving those goals. Thank you.
Senator Reineke.
Thank you, Chairs. Thanks, Mr. Salazi. This has been kind of touched on, But first of all, I want to thank all of your members for coming today because we really do appreciate what they're doing. You have pretty much taken advantage or your industry has taken advantage of a lot of the workforce programs that we put in place. And I think that's really helpful for the people, you know, in schools trying to find out what their purpose is in life. So I guess the question is, so how Ohio is prepared, then we have the workforce to keep us going with all of Ohio's growth.
Through Chair Chavez, Chairman Holmes, Senator Reineke, excellent question. Short answer is yes. I would highlight that most of our 80-plus apprenticeship training programs across the state of Ohio have articulation agreements in place with community colleges so that our members work in partnership with community colleges across Ohio for our members to be able to achieve associate's degrees and have that partnership in place. There are great feeder programs for our apprenticeships, the career technical schools, the vocational schools. You can't do enough for them, as far as I'm concerned. Yet as a legislature, you can't do enough for them because you're talking about casting an even wider net across the state of Ohio to bring more young women and young men into a construction career path, whatever that may be. But, I mean, these are jobs and careers that are highly unlikely to be AI'd out of existence. And Ohio, again, given our history and our heritage, values people that work with their hands. And that's what we're talking about here is the opportunity for workers in the state of Ohio to benefit from this enormous private sector investment. And you heard the wage scales are anywhere from $85,000 to $90,000 to upwards of $150,000, $160,000. And that's with overtime. Okay? You get work. But so many of our members are willing to do that. But in terms of being ready to meet those challenges, we're absolutely, absolutely certain we will rise to meet those challenges. But again, having certainty helps eliminate a little bit of the anxiety of, you know, and it's not just the money. I mean, invested in apprentices. The money's the money. What takes a toll on our leadership across the state of Ohio, much more so is when members don't have the opportunity to go to work. There is no stress commensurate to that. Our leadership wants our members to have the ability to go to work. Starts and stops there.
Thank you.
Representative Glassburn. Sorry, just one brief follow-up. We've had an example of a good outcome of data centers being that the Meta made a deal with Vistra regarding the Perry and Davis-Bessey nuclear power plants. and we've had a couple witnesses somewhat contradict that a little bit. Can you talk about how many, ballpark of how many of your members were impacted by that, and do you believe that that deal saved those plants?
Through Chair Chavez, Chair Holmes. I don't have the specific number. I would defer to David Mondalowski on that up at the Cleveland Building Trades or Sean Enright at Northwest Ohio Building Trades. but it's hard to put in words the enormity of maintaining those two nuclear power plants. I mean, from a building trade standpoint, the amount of work generated, the hours generated at each of them, particularly in years where there's a retooling or a shutdown, the capital improvements there, phenomenal work opportunities I mean and they have sustained generations of building trades workers at this point So particularly Perry. I mean, you mentioned it in a hearing. What was the decommission or closure date of it? This is absolutely outstanding. We have the president of Cleveland Building Trades here in attendance, Terry Joyce. I'm sure he can speak to it. His members at Labor's Local 310 have benefited from Perry for decades. Teresa Moore is here representing Labor's Local 500. Same thing in Toledo and Davis-Bessey. I mean, we want to encourage more of that, and we love what you did with House Bill 15. hey, let's incentivize and let's get everybody rolling in the same direction with respect to generating more electricity, more power in the state of Ohio. We're all in. Let us know what we can do to help. Yes, sir.
Committee, seeing no further questions, thank you, sir. Thank you for everything you're doing. Appreciate it.
Ladies and gentlemen, we've gone for, okay, two hours and 20, so we're going to take a recess right now at 2.20. We'll reconvene at 2.50, so 30 minutes. The committee stands on recess.