June 8, 2026 · and Senate Select Committees on Data Centers · 20,438 words · 11 speakers · 189 segments
Welcome back, everyone. Welcome back to committee. We'll keep going. We have plenty of people to speak now. Our next speaker is from Vertiv, Mr. Stephen McGuiden.
I'll say it.
Please say it, sir. Welcome to committee.
Thank you. Good afternoon, Chairman Holmes, Chairman Chavez, and members of the committee. Thank you for the opportunity to speak today. My name is Stephen Mack Goodwin, and I'm the Vice President and General Counsel, Compliance and Government Relations at Vertiv. Vertiv is headquartered in Westerville, Ohio, and we are a global provider and leader of critical digital infrastructure. We design, manufacture, and service the systems that keep the modern economy running and help support technologies essential to health care, communications, financial systems, and national resilience. We are proud to call Ohio home and are committed to helping our great state remain a global leader in advanced manufacturing and technology and keeping engineers, technicians, and other skilled professionals in Ohio. Ohio is where we develop, engineer, manufacture, test, and support digital infrastructure technologies that are deployed throughout the world. As demand for compute services and AI continues to grow, Vertiv is proud to provide the technologies, infrastructure, and services that enable this growth. Vertiv was founded in Columbus, Ohio in 1965 as Liebert Corporation, which was a pioneer in dedicated cooling systems for computer room applications. Through 60 years of growth, Vertiv has become now a publicly traded company with over $10 billion in annual revenue and 34,000 employees globally. Our company's evolution reflects the broader technological transformation being led by states like Ohio. Vertiv plays a key role in the data center ecosystem. We provide the power, cooling, and IT solutions and services that allow data centers and the broader digital infrastructure they support to operate reliably, efficiently, and safely. And that technology is engineered and built right here in Ohio. Vertiv has 14 facilities statewide, providing employment for approximately 3,700 Ohioans in manufacturing, engineering, supply chain operations, field service, and infrastructure maintenance. Let me highlight three of our facilities in particular. In Ironton, we manufacture liquid cooling and chilled water systems, which are critical to enabling AI data centers to operate with energy efficiency. We currently have over 900 workers in Ironton, and have recently announced plans to expand this facility to create 520 more jobs by 2029. In Delaware, we have manufacturing operations for power systems, an operational data center microgrid that powers facility operations and provides power back to the grid, and a test lab to help data centers address electrical grid capacity and availability challenges. In total, we have over 500 workers in Delaware. Finally, in Westerville, Vertiv operates its global headquarters, serving as a hub for engineering, service, sales, and logistics. Our campus is also home to the Vertiv Academy, which is our training and development center for customers and technicians. We currently employ around 1,750 professionals in Westerville and have plans to expand our campus to add more than 200 additional jobs by 2029. Looking ahead, we remain committed to investing in Ohio. I'm proud to share that Vertiv has announced approximately $50 million in expansion projects that are expected to create more than additional jobs in the state by 2029 Through these expansions we are excited to further strengthen Ohio position as a hub for advanced manufacturing innovation and digital infrastructure Vertiv is also committed to developing a skilled workforce in Ohio Through internships university partnerships STEM programs and executive recruitment we directly create hundreds of career opportunities that attract, develop, and retain skilled professionals in Ohio. It is important to recognize that data centers create lasting local job opportunities that will extend well beyond the construction phase. Electricians, HVAC specialists, network technicians, engineers, and skilled tradespeople who operate, maintain, and service these facilities for decades. For every direct data center job, multiple additional jobs are supported in the broader economy through supply chain demand and ongoing services. Vertiv's own Ohio workforce is a testament to this. Our employees are not building data centers and moving on. They are manufacturing, engineering, installing, and servicing the critical infrastructure that keeps these facilities running year after year. These are durable, high-quality careers that sustain families and communities long after construction crews have finished. Beyond our contributions as an employer and manufacturer in Ohio, Vertiv is also helping to address some of the most important challenges associated with the growth of digital infrastructure. Through continuous innovation, we develop and manufacture technologies that enable data centers to operate more efficiently, reducing energy consumption, optimizing water use, and supporting the responsible growth of the digital economy. As members of the committee and policymakers analyze the future of data center development in Ohio, we encourage consideration of the entire ecosystem that supports it. Beyond the facilities themselves are thousands of Ohio jobs in manufacturing, technology, engineering, electrical, construction, and service industries that drive innovation of digital infrastructure, which will strengthen Ohio's position in the national and global economy. We appreciate the committee's thoughtful approach to this issue, and we are committed to supporting this process. Vertiv is not a new company. Our roots were laid over 60 years ago in Ohio. Not surprisingly, Vertiv represents responsible, long-term capital investment and durable industrial presence. not simply a short-term or speculative footprint. Ohio is the home to companies that build the infrastructure that enables the digital economy globally. As a leading company in this industry, Vertiv is proud to be one of Ohio's success stories. We remain committed to investing in Ohio and creating jobs and helping Ohioans build careers that can sustain their families and help drive our future economy for years to come. Thank you for your time and this opportunity to share Vertiv's story with the committee.
Thank you, sir. Thank you. I'll start on the left. Any questions? Representative Glasper.
Thank you, Mr. Chair. So from your testimony, it seems that any new data center project, so to speak, would have no reason why it would have to be a water or environmental burden on its surrounding communities. Is that your view?
Mr. Chairman and Representative, Vertiv's excited because our role in the ecosystem is to be able to design and develop those technologies that absolutely address the opportunities for data centers. And so through things like liquid cooling and through closed loop, we are absolutely able to partner with the data center operators that are our customers to help to decrease water usage and to address some of these opportunities.
Follow-up?
Thank you, Mr. Chair. To your knowledge, for the data centers that exist, is there any reason to believe that
they either currently are not in a big impact on the water environmental concerns or that they could not be retrofitted to not be an impact with the kinds of technologies your company works on Mr Chairman and Representative we have lots of opportunities where we do retrofitting and where we do upgrades to existing facilities as well as developing for new facilities. And so we love the challenge that these opportunities present, and we do kind of take each of these opportunities on a case-by-case basis with our clients. But our customers absolutely are looking at all of the above solutions to make sure that they improve efficiency and decrease water usage. Because in the end, it benefits everyone. It benefits the local communities. It benefits the operators themselves through decreased costing. And so our engineers absolutely love to take on those opportunities and challenges and design for them.
Follow-up?
Thank you. Last one on this one, Mr. Chair. If your company has any experience with what we've described as brownfield sites, can you describe what kind of challenges that your company might help data centers or other users overcome to make those sites the location instead of greenfield sites?
Mr. Chairman and Representative, yes, absolutely. We'd be happy to share some of this additional information. And as a locally based company, we would be happy to help the committee at any point in time to walk through some of the more technical attributes to retrofits or to brownfield development as opposed to Greenfield. This is something that Vertiv regularly does for its customers. We do have the expertise, and we would be happy to serve as a resource for the committee or to provide any additional technical information that may be helpful.
Thank you.
Representative Workman.
Thank you, Mr. Chairman. Thank you for coming in today. It looks like you're a global company with 34,000 employees on a global scale. Can you talk to us a little bit about the data center boom in the United States and where we rank in comparison to the rest of the world?
Absolutely, Mr. Chairman and Representative. The AI boom is here, and it is real. The United States right now occupies a strategic position right now, in the sense that the United States as an entire country, and the state of Ohio specifically, as one of the leaders and forefront of the United States, is at the forefront of this AI boom and build-out. We are seeing, through our global operations that the Vertiv supports, we are seeing this build-out begin to occur internationally as well. And so through our 34,000 employees, we do provide solutions to data center owners and operators here in the United States, throughout North America, in Latin America, the European Union, India, China. We are at a strategic advantage right now in that the build-out is happening here in the United States and here in Ohio quicker and more efficiently than elsewhere. But this is going to continue from everything that we are seeing in all regions across the globe. Follow up, Chair?
Follow up.
Thank you.
So what happens if we don't keep up?
Chairman and Representative, respectfully, the industry is going to progress, regardless of what is done. This presents a strategic opportunity, I believe, for the state of Ohio, for its citizens. We have the ability right now, I think, to continue this build-out and to make sure that it happens in a responsible manner and an efficient manner. But it is a huge opportunity that we all as a data center industry and as citizens of the state need to take seriously and need to seize that opportunity
Co-Chair Chavez.
Thank you, Mr. Chairman. I want to follow up on both of those questions. So Representative Glassburn asked a little bit about the technologies. What is your perception of the acceptance rate or the appetite of these data centers to improve with enhanced technologies?
Mr. Chairman, Mr. Chairman, there is significant appetite, I think, across not only the hyperscalers and co-locations, but all data center operators. Because at the end of the day, increased efficiency for them improves their cost structure. And so we are seeing significant conversations between our design engineers and design engineers within the data center operators. There is a really great collaboration that goes on there. And there are always constant innovations that are going on and constant discussions to be able to improve efficiencies. And so it is absolutely an ongoing discussion, one that is very well motivated, I think, both for policy reasons and also just for business reasons.
Thank you. Follow up?
And to follow up on Representative Workman's line of questioning, so you mentioned earlier these data centers are going to be built somewhere. And if they're not built in the U.S., what's your perception of the environmental standards being implemented by other countries and data centers?
Mr. Chairman, Mr. Chairman, there are a patchwork, I think, of environmental regulations that we are monitoring. Being a provider of global data center infrastructure, we do track all of these. We work with all of our clients in the geographies and the jurisdictions where they are to make sure that we meet the environmental requirements. but there is a patchwork. And so we work individually with each customer to make sure that we are meeting whatever is the local jurisdiction requirements. And we have the benefit that a lot of our designs have in mind both efficiency but then also we make sure that they comply with local jurisdictional requirements. So it's something that is definitely top of mind for Vertiv and it's something that we are continually designing for.
Follow-up?
Yes, sir. Follow-up. Thank you, Mr. Chairman. So obviously your company and its customers are the best, and you're doing the right things. But what about other customers, other countries? What is it like in other countries that are putting up these data centers at a rapid rate?
Thank you, Mr. Chairman, Mr. Chairman. I think that other countries have, depending on the geography, other countries in some instances have been slower to move, I think. And some of that, more specifically, if we're looking at, for example, the European Union. Regulation and environmental concerns, I think, have slowed down, perhaps, some of the build-out, as compared to the United States, for example. And so what we really look for and what we try and help a lot of our customers to do is to make sure that whatever products we are designing that are going to go into the data centers are going to comply with whatever we see the regulations coming. However, the experience just varies globally. In some countries, we do see stricter environmental regulation. In some, there may be less environmental regulation. The benefit of a lot of the products that the Vertiv designs, though, is by achieving some of these efficiencies, we are also hitting some of the more restrictive environmental regulations. So it really is a situation where the technology is aligned to a lot of the proactive regulatory concerns from an environmental perspective.
Committee, any further questions? Just two for me. And so I'll try to combine this into one question. It's my understanding that Vertivan and Superior Group are generally complementary and not really competitive. So if you could describe that. And then also recognizing that both of you have really blossomed here in Ohio. Is there something about our ecosystem that has allowed both of you to be so successful?
Mr. Chairman, Mr. Chairman, thank you for the question. yes, I think that there are a lot of positive attributes within the state of Ohio that have allowed us to blossom and we do work in tandem with the Superior Group we also work alongside many other companies that also have blossomed here we have the benefit of our manufacturing heritage as a state has provided a strong supply chain that is something that is very attractive to Vertiv as a company especially as we continue our manufacturing operations But I do think that it is that ingenuity as well that helps. I mean, we absolutely love to recruit our design engineers from the state of Ohio. We love to be able to have our skilled trades, operators, welders. It's just the right environment for us. And so we're very supportive and appreciative of that, and we thank you.
Thank you, sir. So, yes, sir, recognizing that history of Ohio, the workforce, the industrial base, the central location in the United States, all those advantages, it sounds like you're saying they still reside, which is why Ohio is one of the reasons why. All right. Seeing no further questions, thank you. Thank you for your testimony.
Thank you.
We'd now like to call Mr. Evan Morrison, IBEW Local 8. Thank you, sir. Welcome to committee. Thank you, Chair Chavez.
My name is Evan Morrison. I am a sworn member of IBUW Local Union 8 and the political director. We represent workers across 12 counties in northwest Ohio and three counties in southeast Michigan. Data centers are a major part of our work in this era. Hundreds of my brothers and sisters are working on the project, Middleton Township Project, MetaSite, within our jurisdiction and many more Ohio workers across all building trades earning a living because of this industry. There is fear because of uncertainty. We must think of these on the scale and the benefit that they merit. The federal highway system, the Apollo missions, the auto industry and nuclear power, electrification of the United States, these facilities are often discussed as though they are temporary construction projects with little long-term interaction with the communities around them, aside from bill payments to the utilities. This is not the reality we are seeing on the ground. Data centers are not built and abandoned in place at the end of their useful life. These sites are connected to extremely valuable infrastructure. Power transmission, substations, fiber, gas pipelines, water systems. Because of that investment, these facilities undergo maintenance, upgrades, refits, and modernization over decades. We have already seen this in the early generations of data centers in Virginia, where major modernization work is now occurring years after original construction, decades in some instances. That work employs skilled local tradespeople. Many would not have been in the industry when the facilities were first built. The comparison I would make for data centers and how to think of them is to major industrial infrastructure projects like nuclear power. A nuclear power plant may have a permanent workforce of a few hundred, But during refueling, modernization, and refit cycles, they can be joined by over 1,000 tradesmen and women on site. We must think of data centers through this lens These projects also have broader economic impact As a local union we build where we live My brothers and sisters will earn income on these construction jobs these facilities represent but we also live in these communities, and the schools our children attend and the resources local communities have to use will benefit from the taxes these facilities will pay. Nationally, our electrical grid and utility infrastructure needs major investment. Many of the upgrades required for these facilities will strengthen infrastructure that surrounding communities will benefit from. Roads, substations, transmission capacity, and utility improvements do not disappear when construction ends. At the same time, and the packet that I shared prior to this has the National IBW Data Center principles in it, The National IBEW agrees these facilities must be held to clear standards regarding energy usage, water consumption, noise, lighting, zoning, long-term accountability, and community impact. Growth must be responsible, and communities must be involved in benefit. The National IBW supports fair share energy pricing, responsible regulation, reliability standards, project labor agreements, registered apprenticeships like what our apprentices go through at our joint JTCs, Joint Apprenticeship Training Committee facilities, and local hiring requirements so that the benefits of this development remain here in Ohio. Our union will grow to meet the needs by training more electricians right here in Ohio. Electrical construction is a career for members. linking one project coming to an end to the next project breaking ground. This is because of the hard work of our union's organizing department, business development, and referral staff. These are careers that allow working people to live the lives they want to live, to buy homes, raise children, support local businesses, and retire with dignity through family-sustaining union wages, health care, and retirement benefits. America has led the world in development. Electrification, auto manufacturing, aerospace breakthroughs, interstate highways, telecommunication advancements and modern energy systems, these all face skepticism and opposition at their time in history. But as a country, we step forward. Since 1891 and IBW 8 was at the first table, the IBW has been part of these advancements and now we train the workforce needed for the next generation of industry. This is the legacy we inherit and we must make a choice to carry forward. Will Ohio compete for major industrial investment? Will Ohio ensure the benefits reach working people in local communities? Our position is that these projects must support reliable infrastructure, responsible regulation, local hiring, apprenticeship training, and family-supporting union careers. If done correctly, these projects can strengthen both our economy and the lives of working families across Ohio. Thank you for your time and consideration.
Thank you, sir. Thank you for your testimony.
Thank you.
Committee, are there any questions? Seeing none, thank you, sir.
Thank you.
We'd now like to ask Mr. Charlie Schilling, Washington County Commissioner. Mr. Andy Rose will be next on deck. Thank you, sir. Welcome to committee.
Thank you, ladies and gentlemen. Chairman Holmes, Chairman Chavez, and members of the committee, thank you for the opportunity to testify today. my name is Charlie Schilling and I serve as president of the Washington County Board of Commissioners I'm here today on behalf of the communities that would host large-scale data center developments since January of this year our Commission has been in communication and negotiations with a hyperscale data center developer in January our board decided to sign an NDA This NDA has allowed me and my role as Commission President to negotiate a property tax abatement or pilot agreement, whichever we come to terms on. This decision has given us a voice at the table. There are also additional negotiations that are decided outside of my role, and I'd like to address those today. Specifically, when the state offers a developer tens or hundreds of millions of dollars in tax relief, what role does the community, the people who live next to the facility, who pay for the infrastructure, have in deciding whether that benefit is appropriate? Let me be clear. I support policies that keep Ohio competitive for these types of developments. At the same time, county boards of commissioners should have a meaningful voice in whether and at what levels state tax incentives are deployed in their communities. Because it is the local community that bears the greatest responsibility for overseeing the infrastructure impacts these projects create. The General Assembly has been discussing both the sales tax exemption override and property tax reform, both of which I'm in favor of and I believe can be solved together. If a property tax abatement or pilot agreement is paired with even a partial sales tax exemption, local governments would be able to reduce the tax burden on residents while still supporting economic development. To provide context for my county, under our current project framework, the revenue generated from a guaranteed pilot agreement, combined with the 1.5% sales tax revenue flowing to the county over a 15-year period, would significantly reduce property taxes for residents and secure a thriving local school district, township, and county. It would make Waterford Township in Washington County one of the most desirable places to live in Ohio. That has always been a goal of mine, and I truly believe these two legislative reforms could help make that vision a reality. Pillar one, county approval authority over data center tax exemptions. The first policy I would like to recommend in authorizing approval to counties for data center sales and use tax exemptions. Under current Ohio law, the sales and use tax exemption available to qualifying data centers is determined entirely at the state level. The county where the facility sits, the government that must widen the roads to handle the construction traffic, dispatch emergency services, upgrade water and sewer infrastructure, and absorb the pressure on local housing markets has no formal role. I want to be direct about what I am and am not asking for. I'm not here to argue that counties should have the power to block all data center development or that Ohio should abandon its competitive position in the data center market. Data centers bring real economic benefits, and I recognize that. What I'm asking is that the communities bearing the infrastructure burdens and the community impacts of these facilities have a seat at the table when extraordinary state incentives are on the line. My recommendation would be that before a sales tax exemption from the state becomes effective, the Board of County Commissioners of the host county or village or city council, if located inside a municipality, must adopt a resolution approving it. Counties could approve the exemption in full, approve it in part, make it contingent upon a negotiated community benefits agreement, or deny it with written justification. This is local control For a developer that wants the incentive the path forward is simple Make your case to the county For a county that wants jobs and investment the answer will almost always be yes, but by negotiating dynamic changes fundamentally when the county has a genuine voice. Host community benefit agreement framework. There are a lot of things that we can involve in these agreements that have to do with infrastructure projects, public safety projects, workforce initiatives, and those are some of the things that we're working for right now. I know I'm getting up against time, so I'm going to move ahead. The next pillar that I'd like to talk about is financial completion assurance. The second policy I urge this commission to recommend is a requirement that developers receiving significant public benefits post-financial assurance, a performance bond.
Thank you, sir. Thank you. I'm sorry. I'm sorry, that was five minutes up. But I'll let you, if you can just summarize that pillar too.
Yeah, I think it's important to make sure that we are holding these developers' feet to the fire in a sense of what they say they're going to do, they do. We want to make sure that within the community development framework, we have the ability then to talk about public safety, infrastructure, the things that are going to be impacted by these hyperscale data projects. And I feel like with the sales tax exemptions that are offered by the state of Ohio, I feel like the Board of County Commissioners or Village Council or City Council should be at the table when some of those incentives are offered, considering the fact that we understand our community and what those needs are as well as anyone. I think that's important to note. But also, you know, it gives us the ability to help impact property tax reform in a positive way for you all, because I know you're working so hard on it, and we appreciate that.
Yes, sir. Committee, any questions?
Senator Reineke. Thank you, Chairman. Thank you, sir. One of the biggest issues that we found is that most of the local communities don't understand that they have most of the control on these. So do you feel that you would have the decision-making authority other than the sales tax use exemption to do all these things that you'd like to do?
Chair Chavez, Chair Holmes, Senator Reineke, thanks for the question. I feel like that it would be important for the local elected officials to be able to work with the state of Ohio when it comes to sales tax exemptions for these particular projects and make sure everyone understands what those needs and opportunities or concerns are within the community to be addressed. so when you look at an overall 100% tax exemption maybe that isn't what it needs to be for a particular community and there are other communities that might want 100% of that tax in Washington County we might want 30% of that tax where someone in northeast Ohio could use 60% of it so that's what I'm trying to get to on the sales tax exemptions follow up thank you chair but the other things are under local control yes like the pilot programs
payment of taxes the road you're talking about all of those things and whether even whether you
want to do the project at all is under local control yeah thank you yes sir i would comment on that um you know i think when it comes to the local control um that is if there are certain guardrails put in place, whether that's zoning within communities and things of that nature. We live in rural Ohio, so we're looking at a hyperscale project itself. that is not being built in an area where there is any type of zoning. You know, there's a, you know, they're going to obviously comply with state, you know, federal regulations, whether that's with the Ohio EPA or DNR when it comes to building the project. But, you know, so when it comes to that type of local control, turning it down, I don't see that being an option for local boards of commissioners in our case.
Thank you.
Just before I forget, is that project tied to municipal water? Will that project be tied to your municipal water?
Yes, sir.
Okay, all right. Any questions?
Blaspern. Thank you, Mr. Chair, and thank you for coming. And forgive my urban Cuyahoga County experience here, but I guess I'm missing something. whether a sales tax incentive is offered or not by the state, I don't understand how that plays into whether you decide to allow a data center into your community or not. Do you not have the control to say yes or no, regardless of what the state does?
Yes, I do believe we have control.
Okay. Thank you. Okay. Seeing no further questions, thank you, sir. Thank you. All right. Thank you. We'd now like to call Mr. Andy Rose from Concord Township. And Mr. Evan Calicoat is next. Welcome to committee, sir.
Chairman Chavez, Chairman Holmes, members of the Select Committee on Data Centers, I'm Andy Rose. I am the Administrator for Concord Township in Lake County. I am also the Chair for the Executive Committee of the Coalition for Large Ohio Urban Townships. Thank you for the opportunity to speak today. I am here to support the protection of local zoning authority when it comes to the development of large-scale data centers in Ohio. Data centers are becoming an increasingly important part of our economy. They support cloud computing, AI, telecommunications, countless digital services, provide many jobs that we all enjoy every day. Economic growth and technological advancement are important goals, and communities should be open to considering new opportunities. However, I feel the key word here is considering. The people that live in a community and the local officials that they elect to represent them are the ones who best understand the character, needs, and future vision of their neighborhoods, townships, counties. Decisions about land use have traditionally been made at the local level because local residents are the ones who live with the outcome. Data centers bring significant impacts. They often require large tracts of land, substantial electrical infrastructure, and sometimes extensive water resources. They can affect property values, change the visual landscape, and place new demands on local services and infrastructure, and these are real issues that affect our communities. Protecting local zoning rights does not mean opposing development. It means ensuring that development occurs responsibly with meaningful community input. Local governments should have the authority to negotiate the appropriate setbacks, infrastructure improvements, environmental protections, and other conditions that reflect the needs of their residents and local community. A one-size-fits-all approach cannot account for the unique circumstances of every township, village, city, and county across the state of Ohio. Ohio can and should remain competitive for investment while respecting private property rights local control and democratic accountability Economic development and local governance are not mutually exclusive so I urge the protection to preserve and protect local zoning authority and to ensure Ohio residents continue to have a voice in shaping the future of their local communities. I thank you for your time and consideration, and I'm happy to answer any questions.
Thank you, sir. I'll start on the right. Any questions?
Senator Reineken? Thank you. Thank you, sir. I'm really confused. You have total control. I don't understand what you're saying here. Because you can do this, you can do that, you can do anything you want locally. You have local control. I don't understand.
We're just restating our position, sir. What is that position? I'm sorry, Chairman Holmes, Chairman Chavez, Senator, there is a concern out there that down the road there may be an opportunity where the state erodes some of the local control regarding data centers and other large-scale projects of this nature. So we're just stating it for the record to maintain full local control.
Co-Chair Chavez. Senator Reineke took my line of questioning. Thank you, Chairman. Are you hearing that the state's considering this, or you're just, like you said, restating?
Restating, sir.
Okay. Thank you. Okay. And again, because this raised an alarm, obviously, for all of us, your testimony says there have been numerous instances when state government overrides local zoning authority. Has that happened here in Ohio that you're aware of?
Not, and I apologize if that's a confusing sentence in my written testimony. That has not happened in Ohio. We don't want that to come to Ohio. No, we don't.
Thank you. Thank you. Thank you, Chairman Holmes. Thank you, sir. Thank you for your testimony.
Thank you.
We'd now like to call Mr. Evan Calicoat, and Cynthia Vermillion is on deck. Thank you, sir. Welcome to committee.
Thank you.
Chair Chavez and Holmes, members of the Joint Legislative Data Center Committee,
thank you for the opportunity to address the committee today. My name is Evan Calicoat, and I serve as the Director of State Policy for the Ohio Farm Bureau Federation. The Ohio Farm Bureau is proud to advocate for Ohio agriculture and our rural communities through our member-driven grassroots policy process. This process ensures that we are truly advocating for the issues that matter most to our members. Data centers are among the main topics that you will hear discussed at every County Farm Bureau meeting wherever you go in Ohio. We appreciate the legislature's intent to create a transparent dialogue around data centers and their various impacts. We fully recognize that the technology we use in modern agriculture could not exist without data centers and other related technological advancements. However, the amount of agricultural land and other resources that are being devoted, or rather committed, to these projects has raised many concerns and questions among our members across the state. While development has been centered around Columbus and central Ohio, we have members involved with local governments and site developers looking at major projects in every area of the state. Many are asking if the benefits of attracting data centers at this pace outweigh the costs. According to the Office of the Ohio Consumers Council, we have around 200 data centers, the fifth highest in the country, nearly the double the number of any of our neighboring states. The rest of this paragraph kind of goes through I think the reasons that they looking at Ohio and I know that we talked about that a lot in this committee So I keep going While the Ohio Farm Bureau is not opposed to data centers or frankly development of any kind farmland loss from development continues to be one of if not the main concern for our members According to the USDA, we have lost 1 million acres of farmland in the last 20 years, and nearly 4,000 farms in the last five. While we continue to employ cutting-edge technology and practices that enable our farmers to grow more with less, the reality is that we simply cannot grow more land. When farmland is converted, regardless of what it's converted into, it is virtually impossible to return that land to productive agricultural ground. Many data centers occupy at least 250 acres, with hyperscale data centers reaching 1,000 acres or more. If we continue to locate development projects of this size, data centers are not in our state. With no long-term land use plan, we will see Ohio agriculture suffer. Our members have identified a variety of concerns with the proliferation of data centers in Ohio. Top of mind, in no particular order, are environmental impact, water use, effects on the grid, and impacts on farmland. However, even if our members wanted to find out more about many of these subjects, it is hard for them to do so. The use of NDAs by data center companies has become a large concern for our members. We believe that communities should be able to advocate for their needs while knowing all of the facts. Transparency is the key to ensuring that any large economic development or infrastructure benefits communities to the greatest extent possible. When considering environmental impacts and water use, I will point to the recent draft permit proposed by the Ohio EPA for data center water discharge. That draft general permit states, and I quote, It has been determined that a lowering of water quality of various waters of the state associated with granting coverage under this permit is necessary to accommodate important social and economic development in the state of Ohio, end quote. In the last decade alone, Ohio has spent nearly $1 billion improving its water quality through the H2Ohio program. Improving water quality helps all citizens protecting both water quality and quantity. Various communities have grown concerned about the impacts of data centers on their local water sources, and we would encourage the General Assembly to share that concern. Thousands of our members have also made their voices heard with legislators about our concern about the sales tax exemption for data centers and the effects on their local communities. At the state level, this is the main tax break that they're able to receive, and it has definitely gone, I think, well above a lot of the forecasts that were instituted when this was first. created in 2013. And we believe that if it makes sense for these businesses to continue building data centers without this exemption, they'll continue to do so. Our members can simply not do the same.
These developers are billion-trillion-dollar companies willing to pay tens of thousands of dollars per acre. No farmer can compete with these prices. Farmers must either acquire more land or make their current land more productive to grow and sustain their operations. In recent years, Ohio Farm Bureau has attempted to reform Ohio's eminent domain laws to ensure the sanctity of private property rights, and when necessary, an eminent domain process that protects landowners to the largest extent possible. While we completely understand that data centers in and of themselves do not hold the power of eminent domain, many of the services and utilities that they require do hold that authority. We are aware of efforts to further erode the limited protections that landowners have from eminent domain by allowing for quick take of property without first paying for that and determining a landowner's right in compensation through a court of law. We would encourage the General Assembly to resist these efforts and continue holding private property rights inviolate as the Ohio Constitution prescribes. While data centers may provide many benefits to our country, state, and local areas, the absence of a robust regulatory framework and long-term planning may lead to unforeseen repercussions. We stand ready to work with the committee and the rest of the industry on this issue. Thank you. I'd be happy to answer any questions.
Thank you for your testimony. Committee are there any questions Senator Reineke Yes Normally typically whenever there an issue
and I have everything in my rural counties, typically the Farm Bureau says, we will not take a position because it's property owner's rights. So how is this different?
Through the chair to the representative, or excuse me, through the chairs to the senator. I do not think it is different necessarily in the fact that if a private landowner is selling their land for a data center, that is their right to do so. No part of my testimony argues that there should be anything different. I believe that if they want to do this, they should. But I think there are many questions that our members have, and I will be the first to say I think there's a lot of misinformation out there that has hurt the arguments of many people that have real, true concerns. And I believe that my members have real, true concerns.
Senator Wilkin.
Thank you, Chairman. Thanks for being here. You said one of the real concerns of your members is water quality. In what aspect? Where do they see the issues coming in with water quality with data centers?
Yeah, through the chairs to the Senator. I will be the first to say I think we were glad to hear testimony from the Ohio EPA talking about that there's only one current data center that has a discharge permit, and that the rest are plugged in essentially to municipal water systems. That was great to hear, because I think that is one of the things that our members have most concerns about. However, the draft permit was a draft permit. It was put out, and it said that a lowering of water quality was necessary for these things. So at least in accordance to that permit, there was a water quality concern there. If there's other concerns, I would say for individual types of projects, that is for those types of projects and their communities to figure out. But from a statewide concern, I think that really got our hackles raised, so to speak.
Thank you.
Representative Glassburn. Thank you, Mr. Chair. So it sounds to me like the greatest concern on the eminent domain issue is whether utility lines and utility facilities and water lines and sewer lines are extended through your members' territory. Is that happening now? Can you put more color to your concern on those issues?
Through the chairs, to the senator, I am not aware at this time of eminent domain being used for a specific utility or a specific service to a specific data center on a project level. I'm not saying that it hasn't happened. I'm not aware of a specific case. But like I said, we know that a lot of utilities and services that would be required for a data center, those are things that have the eminent domain authority. And we're not saying that they shouldn't. We understand that they do. But it's the expansion of that authority, I think, that hurts us. Under the Ohio Constitution, the only entity that I would say has 24-7 quick-take authority is ODOT. And we understand that, that we have to build roads. But I think any expansion from that would be very concerning. I think our members, again, we were founded as a private property rights organization, and if there would ever be further erosion of those private property rights through an expansion of QuickTake, either through their related utilities or data centers themselves, that would be something that we'd be very concerned with.
Follow up? Thank you, Mr. Chair. On a different note, you've mentioned that your members have experienced higher utility rates due to... You believe data centers, you heard from the data centers themselves, their coalition saying that utility rates are up 50% or that the increase, 50% of the increase is related to them and that they'd like to pay their fair share. If that fair share doesn't include the last two years of increases being mitigated, are your members okay with the status quo just going forward as long as we prevent future increases?
Through the chairs to the Senator. On that specific type of provision, I think I'd have to get back to you on that one. But I think you hit the nail on the head. I think there are a lot of things that we want to talk about, and we're glad that the data centers are willing to pay their fair share. But this was something I didn't get to in my testimony, trying to shorten it. I do think we also have a concern that it's not, I would say, especially the generation side of people's bills that are concerning to us. I think the transmission and distribution rates might need to be looked at as well. I think we share some concerns about over-forecasting of load, and I do think a lot of the speculation about data centers is hard to nail down what that load is, but we want to make sure that we are not, again, over-forecasting, try to build these types of things that would increase rates, even though we would agree that we need to make upgrades to the grid and what have you for these and any other type of economic development. We just want to make sure, again, that these rates are affordable for the rest of us and if there's these large types of development that they're paying their fair share.
Follow-up? Last. Thank you, Mr. Chair. Would it be correct to assume that your organization would be supportive of the state differentiating that brownfield sites are preferable to greenfield sites and should be incentivized accordingly?
Through the Chair to the Senator, I think that is very true. And we were glad with the legislature's – excuse me, I'll restart that. We were very glad to see that in House Bill 15 that was passed by this legislature, there was incentives for behind-the-meter generation and other types of things, other types of generation projects on brownfields. So any time that we can put more things onto brownfields and not on farmland, that is something the Ohio Farm Bureau will support.
Representative Workman. Thank you, Mr. Chairman. Thank you, Mr. Calico, for being here. We much appreciate the Farm Bureau Federation and the involvement in this conversation. So I guess my confusion is around, obviously this is a big issue, a very hot topic, is around the ability for neighbors, for example, to have a say in someone's private property rights. What are your thoughts on that? I mean, obviously we have very large farms that use fertilizer, they plant seed, there's runoff. What are your thoughts on a neighbor's rights or the neighbor's voice in the private property activities?
Through the chairs, to the representative, thank you for the question. I think everyone's views, no matter what type of development is going on, is important to be heard. And we think that everyone has the right to make their voices heard. And when it comes to private property rights, we think that private property owners should have the right to make their voice heard as well. But I think if we would go to anything where a neighbor can tell someone what they can do with their land or whatnot, that would be concerning to us. Because that's used against agriculture as well. I do not want to sound like a hypocrite. I think we face many of the same misinformation, or we face disinformation just the same as this industry. So, again, I think everyone has the right to make their voices heard, but we want to make sure we protect private property rights in the process.
Senator Reineke. I'm sorry, I have to question this just a little bit. We had testimony the very first day from our state agencies, the PUCO, trying to demystify these myths that are out there and I feel like your statements that you just had on energy are suggesting that they not paying their fair share PUCO everybody said that they are paying their fair share All of the data centers have agreed to that. What am I missing in what you're trying to say?
Through the chair to the senator, I in no mean tried to say that they were not at this point. I think we are glad to see a lot of the announcements. I don't want that to be the characterization. We are very glad to see what they are doing, and our members are encouraged by those.
Thank you.
Then just for me, one final question. It's about water, and for sure we love our farmers very much and important, but you just talked about H2O Ohio, and we've had testimony from the EPA, and we've had testimony from ODNR on water. All three of those entities on clean water, are you still concerned that data centers are not doing something to our water?
To the chair. Again, we appreciate the testimony that's out there. I think it helped clear it up a lot of questions that my members may have had.
Okay.
I think at this point we just want to make sure that they continue doing the great work that they're doing. And again, I really just point to that permit, because that permit was a piece of evidence that we had that water quality would have been lowered. So I think when we're talking about that, when we're talking about discharge permits, excuse me, we're talking about discharge permits and then we'll be talking about those as individual data center places, I think that's a conversation we would like to continue. But in terms of a problem, I just think as long as communities' questions are being answered, we're good.
Thank you. Then we're doing our job as a committee. Thank you, sir. We'd like to now call forward Cynthia Vermillion, and Mr. Terry Joyce is on deck.
Cynthia Vermillion.
All right. We will move next, Mr. Terry Joyce. And then Tim Bubb is next. Mr. Joyce from Cleveland Building and Construction Trades. Thank you. Thank you, Chairman.
Thank you, Chairman Chavez and Holmes and members of the Joint Data Center Committee. Thank you for hearing my testimony today in person. I'm Terry Joyce, Business Manager of Labor's Local 310 and President of the Cleveland Building Trades Council. I also serve as Political Director for the Ohio Labor's Council. Those are the great men and women behind me in orange, so if you were wondering. So our council, the Building Trades Council, is an affiliation of 25 construction unions representing over 14,000 tradespeople employed by over 825 signatory contractors in northeast Ohio. The Cleveland Building Trades wants Ohio to be a hub for our state's cyber-physical infrastructure. We advocate for sensible regulations over blanket data centers. thoughtful approval allows local leaders to negotiate community benefits and safeguards that align data center projects with public priorities. As communities debate whether to approve new data center construction, it is essential to look beyond fear-mongering and misinformation. We must recognize what these facilities truly represent, long-term private economic investment, technological resilience, and hundreds of family-sustaining jobs in Northeast Ohio. Data centers are the backbone of the digital economy. National security and America's technological competitiveness depends on domestic data center capacity. The Cleveland Building Trades wants Ohio to be a hub for our country's high-tech infrastructure. Without sufficient data center construction communities risk falling behind in attracting businesses and supporting the services residents are already using every day Approving new projects in the Cleveland region is about keeping pace with our own digital demand as individuals and institutions Do we want to bring industrial jobs back to Northeast Ohio? If not data centers, exactly which developments would be more sustainable and beneficial for our region? Communities that welcome data centers position themselves as hubs of innovation rather than spectators to it. This proximity attracts adjacent industries, software development, cybersecurity, research institutions, and advanced manufacturing, creating an ecosystem effect that extends beyond a single-day facility. And I, for one, learned a lot from the speakers that you guys all brought here today, and it's just been great for me as a construction union tradesman. The question is not whether data centers will be built, but where and under what standards we set in our communities. Data center construction is a wise investment in high-tech infrastructure with the potential to help the Cleveland region and Ohio thrive for future generations. This I respectfully submit to the committee.
Thank you, sir. Thank you for your testimony. Thank you. Committee, any questions? We'll start with the gentleman from the Cleveland area. Thank you for making the trip down to Columbus.
So let me ask you again, I'm sorry to keep harping on this for the committee, but I want us to have a straight answer. The meta deal for the Perry nuclear plant, to your knowledge, how does that impact your members, and did that deal save that power plant from closing in five years? Through the chairs to the representative, it is my opinion that it has. Those facilities, both Davis-Bessey and Perry, are critical to our trade unions. We're about to embark this April, I think, on their biggest shutdown ever. I'm hearing anywhere from 80 to 100 days. It doesn't sound like a lot. I mean, I think my brother, Matt Salazi, did a great job of explaining that some people call these short-term jobs. But when we bring an apprentice on into our trades and we promise them 30 to 35 years of employment, we probably string 100 to 200 of those jobs together to make their careers. So the nuclear is so critical to us because that allows our members to go across the country. So NANTEL is the governing agency of the nuclear industry. There is such a thing that's called red-badged. It's kind of the highest of security that our tradespeople can pass. But once you have that, you can go from sea to shining sea, and we've had members do that very thing. So that deal, and I don't know the particulars of it, but I know that they're planning for the future, and the fact that they're going to do somewhere in the neighborhood of a 100-day outage shows me that their company is committed to our region.
Thank you. Yeah, sure, thanks. Committee is seeing no further. Thank you, sir. Thank you for your testimony. I appreciate it. Thanks for having me. Thank you. All right. We'd now like to call Mr. Terry Bubb from County Commissioners Association. Gene Krabs on deck. Thank you, sir. Welcome to committee. Thank you. Thank you.
Co Chavez and Holmes and members of the Ohio Select Committee on Data Centers We do thank you for the opportunity to provide testimony today on behalf of the County Commissioners Association of Ohio CCAO My name is Tim Bubb I president of the board of Licking County Commissioners I also serve as chair of CCAO's Technology and AI Committee, which is studying a variety of emerging technologies and policy issues affecting our county governments across Ohio, including AI, cybersecurity, and, of course, today, data center development. CCAO appreciates your committee's willingness to engage in this dialogue on this important and rapidly evolving issue. Data centers, we know, are becoming a topic of a robust conversation in the counties across Ohio, including licking, and it is important that policymakers, local officials, and the public have access to complete and accurate information on these discussions. County government is among the closest form of government to the people. We, the commissioners, do hear directly from residents about both the opportunities and concerns associated with data center development. And across the state of Ohio, your commissioners are increasingly being asked questions about economic development, energy usage, land use, water resources, infrastructure demands, environmental impacts, taxation, and more. Many counties are only beginning to encounter these conversations for the first time, while others, including us in Licking County, have already experienced substantial growth in the sector with more than three dozen data centers built or in progress. At the outset, it is important to recognize that data centers are an important component of the modern technological development. Nearly every aspect of today's digital economy relies on data infrastructure. We all know about cloud computing, AI, advanced manufacturing, healthcare systems, your financial services, our education, communications, and countless other technologies do depend upon reliable and expanding data center storage and processing capability. There are also important national security and economic competitiveness considerations associated with the industry as the U.S. seeks to maintain leadership in AI and many other parts of the digital infrastructure. At the same time, the commissioners recognize that the rapid expansion of data centers raises legitimate questions from county residents. And while commissioners may not always be in a position to directly address every concern raised by residents, we certainly are trying to provide guidance and a degree of accountability. From a county government perspective, one of the most important realities is that commissioners often have limited direct siting authority over data centers. In many areas of Ohio, zoning authority rests primarily with townships and the municipalities, although some counties do have county zoning. Regardless of where that authority resides, data center siting, land use capability, and zoning standards are becoming subjects of increasing local discussion, sometimes contention. County officials also hear substantial concerns regarding energy usage, electrical infrastructure, water consumption, environmental impacts, and more. The same things that you are all hearing. Commissioners also evaluate the significant potential economic development benefits associated with these projects. Data centers can increase local property tax collections and contribute to the tax base that supports our schools and local services. They can generate construction activity and create significant temporary construction employment opportunities along with permanent operational positions as Well.
One minute. Yes, sir.
Another area that frequently arises in county discussions is transparency. Commissioners often recognize that companies considering major investments often seek confidentiality protections during parts of the site selection process. In a highly competitive environment, businesses may have legitimate concerns about the disclosure of proprietary information, as well as their operational plans and other sensitive data. At the same time, commissioners also recognize that transparency plays an important role in building trust, particularly when projects involve significant land use changes, infrastructure impacts, and public economic incentives. As policymakers continue examining the issue, CCAO believes it's important to recognize that county experiences may vary considerably across Ohio, 88 very different counties. We are concerned about the issues, as you are, as well, and I stand ready to answer any questions regarding that or nondisclosure if you care to ask them.
Thank you, sir. Thank you very much. Committee, any questions? Thank you very much.
What do you think about nondisclosure, sir?
Thanks for the question, Chairman. Mixed bag personally about it. We haven't always signed non-disclosure agreements in our own county. It really depends on the situation. There are issues regarding site selection, land acquisition, and the questions that you've heard today from people who are economic development professionals that they would be put at a considerable disadvantage in Ohio compared to other states if they didn't have that non-disclosure agreement. It's a little different bag for elected officials, as you all know. As Jennifer Chrysler told you earlier, New Albany, which is in Lincoln County in part, and all their data centers are, they have been creative in their nondisclosure. But there's a limit to how far we can go because of the requirements of Ohio law. But certainly people who are economic development professionals need some limited capability for that, or they're going to be put at a severe disadvantage.
Yes, sir. Yes, sir. Competitive advantage. Yes, sir. And finally, I wanted to ask your thoughts on sales and use abatement tax.
That's the big one, I guess, in the room, Mr. Chairman. Counties rely to a great extent on the sales tax, as does the state of Ohio. And it's possible that we've given away too much. We've seen the numbers and the explosion of data centers in Ohio. It's a fine line, and I hope that as legislators you find compromise in any changes that may be evolving in the legislation that's proposed, simply because we've still got to remain competitive, but we can't give away the farm. At the same time, the data centers that we're talking to in Licking County, for the most part, are willing to pay. They're willing to pay both pilot programs. programs. They're willing to involve themselves in community put back to the schools and that sort of thing. And the most recent data centers we've had in Licking County have said they don't want property tax exemptions. They fully intend to pay the property tax. So for them, it's a cost of doing business as well, but it's a fine line between that and being so uncompetitive that the jobs go other than to Ohio. Yes, sir. Thank you. Thank you very
Thank you, Mr. Chairman.
One saved round Senator Reinecke Senator Thank you Chairman Thank you sir Representing the association do you feel that most of the county people understand that they have control over these projects in their district or in their counties
Through the chairs and Senator Reinecke, not necessarily. This is new ground for a lot of smaller counties and counties that have not seen a lot of economic development. I do applaud Director Chrysler from New Albany and others who have reached out across Ohio to share their degree of experience. For a lot of counties that haven't seen a lot of economic development, southeastern Ohio especially, this is raw territory, and the temptation is that we want it all. But it's a fine line. And I don't think there's that complete understanding of the control, but we know it's there. We have that zoning control. Our townships, villages, and cities do. And ultimately, every one of these deals that we're doing in Licking County is a negotiation, and we expect the companies to be a full and participating neighbor and to pay their share, and they do.
Co-Chair Chavez.
Thank you, Mr. Chairman. I want to go back one question to the sales and use tax from Chairman Holmes. So we asked you specifically about the sales and use tax, and you started to answer that, and then you shifted into property tax. Two very different things.
Oh, yeah. Right? So that's what I'm afraid folks don't understand is the distinction between them. Sales and use tax remitted back to the state, and the counties get some of that back. Property tax is wholly up to the local individuals, right?
Correct.
Yes, Chairman. Do you feel like folks understand the distinction, or is it all getting lumped together where a tax abatement, sales and use tax abatements get the big headline, and they're automatically assuming that they've been given the farm. Sure, Mr. Chair, and through the chairs, the commissioners certainly understand the distinction, but the general public doesn't. Taxes are taxes. It's viewed as a burden, and they seem to be all lumped together, especially in sort of the very inaccurate social media that we see. It means an awful lot to the schools in terms of the property tax, And that is a completely different economic incentive than this sales and use tax, which is a very valuable incentive to bring those jobs to Ohio. So I think we have to be very careful as to how far we step back in that regard because we're in a competitive environment both nationally and internationally.
Sir, follow up. Follow up.
Thank you, Mr. Chairman. So you're absolutely right, right? So if they never come in the first place, then we're not going to get any benefit from it. So we're trying to thread that needle. How do we help folks understand the difference? How do we help you help them?
Thank you, Mr. Co-Chair. Sometimes I would throw that back. How can we as commissioners help you? Because we're at the grassroots level, and I think it's an educational process. data centers have become sort of the bad child right now in the media and in social media, and I think they're taking a bad rap, to be honest with you. And I think it's up to us as local officials as much as it is to you to try to explain to folks that water use is not as it's advertised. The technology has evolved so much in the 20 years since I've seen data centers evolving here in central Ohio. And same thing with public education. People right now I think they blaming data centers honestly for the price of electricity which is caused by so many things including generating capacity and everything else And so I think right now they just the bad child in the room but I think they taking a bad rap There's just tremendous benefit to the communities of Ohio with these new jobs and this opportunity.
Senator Wilkin. Thank you, Chairman. To go on with what my colleague Senator Chavez said, to get the word out, if we only knew a guy that maybe had contact with a radio. Shane, I think we've got that.
Through the chairs, Senator Wilkin, who I sat beside when he was a commissioner at CCAO. You're right.
Give me a good example, though. You heard from Jennifer. We're sort of Licking County sort of bracketing your hearing today. But I thought it was a very educational presentation by Jennifer Chrysler today and the team from New Albany as to how they've worked to educate their community and really in Licking County. I can honestly tell you, and Representative Claggett is here on this panel, we hear a lot of questions, but we're not getting the feedback here in Licking County. For the most part, our residents have come to embrace what these opportunities look like. And I think that they've done an excellent job with a lot of the technological innovation in New Albany, which is very much part of Licking County,
explaining what the opportunities are and what the future looks like for young people who want to go to work. So maybe we need to get on the radio some more, Shane, and see what we can do to promote that. Follow-up. Follow-up. So I agree with you. I think Ms. Chrysler this morning and the team from you all when he did an outstanding job. But my concern becomes more for areas like mine, and actually several of us up here that represent the rural areas where we probably don't have the resources, specifically the financial resources. So when we had the hyperscales up here the other day, I asked a question like, what are you doing to help the smaller rural communities? Unfortunately, only one of them answered that they were actually picking up fees for legal bills to allow them to have representation, you know, opposing representation for them to make sure they're getting a fair shake on this. What are some other things you think, if we can talk specifically, I know you have lots of experience at the Commissioner's Association, with the rural counties and things that they can do. What do you think some of the things we could do to offer a hand or a leg up there? What are your thoughts on that?
The development agencies at the state level, I think, can learn a little bit from what New Albany is doing in terms of making that information available to areas that don't have that degree of experience, I will argue at the CCAO level, at the 88 county level, that we need to do more and step up and give our commissioners the information they need to speak up at the grassroots level. You know that your voice is heard in the counties where you represent much more than they would be others. But the other, it's an interesting point. One company that we've dealt with, and they've done it very publicly, so I'll mention it, here's Microsoft. in the four AI data centers that they're building right now in Lincoln County, in Hebron, Heath, Pataskala, and New Albany. They have been extremely forthright in coming forward in the communities with public appearance and acceptance, investment, pilot programs in the communities, working with the schools. In other words, it seems like sometimes from an economic development standpoint, you sort of hide behind the lectern, or you don want to talk about what you doing until it done They been right up front from the moment they acquired sites in Licking County to talk about what their plans are and asking the community what can we do to fix infrastructure and make it a better deal And I think the burden is on the hyperscale or the people who are building big projects. Once they get past land acquisition, I think people don't do well with change. And I think that by being out front as county commissioners, as public officials, and as people who are developing these projects, need to get right out front and talk to folks about it. Because I think sometimes there's that feeling we're hiding something, and that's reinforced by social media. Nothing's being hidden. These are great opportunities for these counties. And for southeastern Ohio, I'm a graduate of Ohio University. I understand exactly where you're coming from. Some very poor counties that need any opportunity to get ahead and give their kids an opportunity to stay there and go to work.
Okay, committee seeing no further. Thank you, sir. Thank you for your testimony.
Thank you, Mr. Chairman and chairs. Appreciate the attention of the committee.
Thank you. We would now like to bring forward Mr. Gene Krebs, former legislator. John Igles on deck. Thank you, sir. Welcome to committee.
Thank you, Chair. I'll be joined by my esteemed colleague, Sean Logan, who along with me is co-president of the Ohio Association of Recovering Legislators. That was a joke. Nobody's laughing. Okay. Thank you, chairs and ranking members. To give you some context that may help you out on this, it may be helpful for you to pull up the zoning map of Ohio that was presented as an addendum to your presentation here. The debate on data centers is largely shaped by three policy tranches, water, electricity, and farmland loss. Logan was director of ODNR for four years, which manages the quantity of water in Ohio, and I was chair of the governing board of the Ohio Consumers Council for five and a half years, which, as many of you know, is the consumer advocate on electrical issues. The institution's laws and processes exist to help manage the responses in the water and energy arenas. By comparison, the land use issues are frustrating to citizens as there is a vacuum in the institutions, laws, and processes to evaluate farmland discussion to the level they desire. While recognizing the pitfalls of Dunning-Kruger, we come to you today to discuss how to enable the local governments to deal with farmland preservation. Some of the tools that the locals need to create a proper balance in the desires for development and farmland preservation can be found in the 1997 Farmland Preservation Task Force report, which I just emailed to each of you. As a sitting Republican and Democrat House members of the said task force, we felt that it was incumbent to start the process of translating the report into actual ORC language. We believe House Bill 645 of the 122nd, that's right, 122nd, we said we're recovering elected officials, to be somewhat unique. As it took a major report and rather have it sit on the shelf and gather dust, it created a template for movement in this issue. It was co-sponsored by a broad mix of conservatives, liberals, and moderates. So much of the bill concerned increasing the planning done by local entities, mostly counties. and recentering how the state made decisions, including farmland, as a consideration. Very subtle changes, but if the bill had passed, we believe the debate today on data centers would be very muted on the issue of farmland law. as the locals would have had the tools by which to deal with the complexities of this issue. In short, it would lower the tensions and give everyone the pathway to consensus decisions on farmland preservation. In addition to the report, we have attached the map, which I referenced earlier, showing the state of zoning in Ohio and will be happy to answer any questions.
Thank you, sir. Thank you very much. Gentlemen, thank you, gentlemen. Committee, any questions? All right. Co-Chair Chavez.
Thank you for your testimony. Thank you, Mr. Chairman. Thank you for you guys to get away without any questions. So going on a theme that we've had this afternoon, what's the state's role in this about zoning? Because that seems to be the local powers.
Thank you, Mr. Chairman, Mr. Chairman, members of the committee. What you'll find in the task force report was that the state can do things, though, to encourage planning at the county level. Currently, right now, the Office of Farmland and Preservation has a grant program of $50,000 for doing a county-wide plan. Most folks that you talk to say it's going to cost about $150,000. And this goes to, I believe it was maybe Senator Wilkin who brought up the fact that many of his counties are smaller, rural, have low wealth indexes and find it difficult to scrape together the amount of money for such planning. It also then goes to the issue then that was raised by, I think, Representative Glassburn about, well, why can't we put these data centers in brownfields? Well, if you go back and read the report, it will call for exactly that type of incentive program that the state can supply. In other words, Mr. Chairman, Mr. Chairman, members of the committee, there's a lot of subtleties that you can do in this topic, in this arena. We encourage you to read the report. Read the bill language, which we sat down with many of the members of the task force, God, 28, 9 years ago now. and translated it from the report language, goals and aspirations of that, into actual proposed ORC language. So you have a lot of the tools there encapsulated in that. Yes, in the testimony is the link to the actual bill that I referenced from the 122nd. One of the unique things we did was that in the enabling statute for each of the state agencies, preserving farmland was listed in there in their compliance with a certain section that created the process of county or regional county-wide zoning. But there was an additional process. One was you could have it voted on once it was completed in proper public hearings and complete buy-in. The second was two-thirds of the townships, two-thirds of the cities, municipalities, and jurisdictions of the county representing two-thirds of the population had to agree to it. So the buy-in comes from the grassroots up, but you had to encourage other decision-makers, particularly at the state level, other state agencies, to recognize the value of farmland and the tough choices that local government has to make. But by planning, those decisions become less of a problem. And just for clarification, for those who have not been here for multiple decades, any time a state agency is faced with a difficult decision as to what to do as former director of ODNR will testify to they go and they look at their enabling language as their mission statement And so what this did was this was to put farmland preservation into the enabling language of those state agencies, thereby creating a subtle shift. So you ask the question is, what is the role of the state? That is one of the reforms that would make it easier for you as the state. I mean, when I heard the testimony, where this came from was that a week ago, watching the testimony going, oh, my gosh, everybody's unhappy because there's not the processes in place by which their concerns can be addressed. If you, you know, there's a thing here that the longer you hang around policy, you begin to understand and appreciate the need for the proper processes in order to move and achieve balance. Your challenge in this is to achieve balance. You have the tools already. His former agency has the best maps I've ever seen when it comes to water quantity around the state. I used to have them hanging in my office years ago. You have the same balance when it comes to bring in PUCO, OCC, the Ohio Siding Board, and PJM to help you get to where you need to understand how to deal with the electrical aspects of this. But for the general public, their frustration was palpable on the lack of tools at the local level for farmland preservation. And that's what we're hoping to crack the door and allow you, if you want to, hey, it's here. Take a look.
President Workman.
Thank you, Mr. Chairman. Thank you so much for your testimony today. It helps provide a lot of clarity around some of these concerns. I'm hoping you can speak a little bit more to the zoning. I know very little about zoning, I'll be honest. We have some data centers that are looking to establish their operations in what they're calling a light industrial zoning area. So my question is, how can we pull hundreds of megawatts in a light industrial zoning area? I'm hoping that you might be able to answer that question for me.
Co-chairs, Representative Workman, I think that, again, it's a balance. depending on the scale, both the footprint and the consumption of whatever the resources being consumed, whether it's farmland, water, electricity, that the larger, the hyper scale is probably not like industrial.
Representative Clackett.
Thank you, Chair. Thank you, gentlemen. Just a comment maybe for the committee to whatever you want to comment on it back. I'm from Licking County. Commissioner Bubb was just up. We talked about New Albany today. When the Intel project came to my county a while back, our county did what I consider a Herculean effort between the private citizens and the county leaders in a zoning review and so forth, all these little townships, about half the county from the middle of the county seat to the west. I'm just going to tell you we've offered our plan to multiple counties all over the state and I don't know that anybody took us up on it. It takes an enormous amount of leadership to take a plan like that and implement it and get any kind of buy when you don feel your back against the wall And so I not sure what you can do with that but I just telling you from personal experience that was a huge effort and funded primarily by private companies and individuals with a little bit of public money into it and we got it done. But it was only because of tremendous leadership, and so that's the issue.
Co-chairs, Representative Cladgett, you're talking about planning. You did a comprehensive land use plan, yeah. So I think that the grants at the Department of Ag is really appropriate, and that's one of the things that we would have been proposing as well. But I think technical assistance. Being a former county commissioner, we're both former county commissioners after we left the Ohio House. And I tried to institute a comprehensive land use plan in 2004 to update our 1968 comprehensive land use plan in Columbiana County. was called a communist by an auctioneer because we were, and also in the legislation, to warn you, we proposed allowing the lot split subdivision review to go up to 20 acres. I know that that's a difficult pill for swallow for a lot of folks that are in development, but that's the type of things that we were trying to plan for as well. And I think having technical assistance, in addition to the grant from the Department of Ag Office of Farmland Preservation would go a long way. I mean, we were trying to do it on our own in Columbiana County, and OSU Extension had made some folks available, but I think that having to come directly from a more robust state view, that may help other entities adopt that. By the way, the Farmland Preservation Advisory Council is meeting Thursday, the 11th. Maybe we'll have to visit out there. Yes, that's an excellent point. So much to my surprise in my quasi-semi-retirement, I'm getting asked to go on talking head shows. And in September of last year, I was on a talking head show, WOSU's Columbus on the Record here, and I said that data centers was going to be the next highly divisive issue coming into Ohio. I wish I was wrong. Last week I was on the Talking Head Show, and of course data centers came up again. And I said, it's heartbreaking for me, but where this has evolved, you've got to remember something here. You're seeing me here in a Brooks Brothers suit. I'm actually a seventh generation farmer who most days wears bib overalls and flannel shirts. And so my neighbors stop in to see me and talk to me about things because I'm dressed like I always have been. I'm one of them. I have never seen an issue become more class-driven. It is terrifying to me that the rural communities, and I'm picking this up all across the state, the rural communities feel this is being foisted on them by the big city, coastal elites, the billionaires and millionaires, the utility companies, they are just, it's just terrifying to me. So why should you do this? Why should you be working to do something, fix something like this? Because I've never seen the people in the rural areas more upset about any issue in my entire career. and so it's incumbent upon you, the members of the General Assembly to get slightly in front of this issue and give them the tools by which you begin to moderate the debate And that what not happening It goes back to what we saw a week ago. When all those folks came in, they were all so angry at you. That's what precipitated this. You, the state and the local government, need the tools to be able to deal with this. Thank you.
Seeing no further questions, thank you, gentlemen.
Thank you. Thank you.
We'd now like to call Mr. John Igle from the Associated Builders and Contractors. Kelly Hikes from Norwich is on deck. Thank you, sir. Welcome to committee.
Thank you, Chair Chavez, Chair Holmes, and members of the select committee. Thank you for the opportunity to provide testimony on behalf of the Associated General Contractors, the Ohio Contractors Association, and many of my colleagues in the heavy highway industry. My name is John Igle. I've never done this before. I'm the owner of a heavy civil construction company here in Columbus. I have been for 25 years. We've been providing what the press and the chatter has been calling temporary jobs for over 115 years. And it's certainly a misnomer in our industry to call our livelihood and our careers temporary. We've had five generations of employees live and build in this community. There are generations of families, grandfathers and fathers working for a company, and now they have raised their kids and retired with pensions, and their kids are all employed on these temporary jobs. These are professional construction careers, accounting for around 6% of U.S. GDP. We have employees working on data centers for over nine years. The average tenure of U.S. employees is less than five years at a job. I think our careers can stand with the best. We employ over 1,000 construction professionals at our firm, with over 800 working actively on data centers today. We've been doing data center work for more than a dozen years, and the data center boom has certainly affected our business model, and with it brought its own impact to the other businesses we do business with, from our insurance agent to our fuel supplier to the people we buy our hard hats from. And I'd like to put some perspective on those numbers for our company, about what $28 billion of private investment has brought to Ohio. In our company, we paid partially $3 million last year in Ohio State sales tax on these jobs. Because as you know, most people don't. All things covered on these jobs are not sales tax. It's not the consumable supplies, the bulldozers and backhoes we buy. $3 million for new equipment, rentals, and consumable supplies. That's over $60 million in sales to vendors who, again, are paying cat tax and paying their employees. Our more than 800 employees on the data centers are paid union scale with full health insurance and pension benefits. It equates to nearly $3 million in Ohio, state of Ohio income tax withholding, with, again, our employees paying an additional $3 million in their own personal returns. Another $2 million from our people were paid in local Ohio tax districts withholdings and another half a million dollars for Ohio school districts withholdings. Company payroll for our company was up over $30 million last year. Mechanics, managers, admin staff, all paying taxes and raising families in this great state. And we aren't the largest company working on data centers by any means. Superior Electric, much larger, as you heard today. These numbers are just a fragment of the people who are to take. They're electrical, mechanical, plumbing, and building contractors. the team it takes to put in place these jobs. I'd like to share a note from Zach, one of our grade foremen. Zach started as a relatively unskilled union laborer 14 years ago, and he's worked almost exclusively on data centers. He's progressed through some union training, through our own soft skill training, through some computer training, GPS training that we use, and promoted to his current grade foreman position. He has a company truck now, and he's got additional pay and benefits. Zach made more than $100,000 the last couple of years. Zach wrote this note from the company contest we had for graduates. We gave a gift card to new graduates as they expressed them for their families. Zach posted a note in jest to get a gift card for his oldest child graduating from middle school. People will do anything for a gift card. He was trying to get one for his middle school graduate. Our son, Jack, has moved to sixth grade next year. Personally, it's hard to believe that when he started, there were no kids involved. Now we've got four. Our oldest will be in middle school next year. I'm sure a lot of you have seen families grow here at IGO over the years. The world of the story is for younger people, this is a great place to grow professionally, personally, and to grow a family for life. Have a great mindset, be an honest, reliable person, and always try to grow yourself and be better. A great note from Zach, the person, he gets it. And better yet, he's worked hard to earn it. We've watched him thrive due to the steady work provided by the data centers. $28 billion is a lot of money. It's $4 billion is the ODOT budget, $4 million is your capital budget. This is $28 million of new private, not tax money, private money going into the state. And we're interested in seeing that go forward. We see data centers where our people are getting free lunches, hams, and turkeys. The data center owners are very good to our people. With that, we want to celebrate this abundant investment in Ohio, and we believe in the men and women who earn a living through this investment. Thank you, sir.
Thank you for giving me a few extra seconds. Thank you very much. Committee, are there any questions? Thank you, sir.
I just, for the record then, I just wanted to say that your statements are, you have all the general contractors in here, Trucco, Miller Brothers, Ruland, Beaver, Cocosing, Great Lakes Construction, Dugan & Myers, Rudolph Libby, Turnkey Tunneling, Associated General Contractors, you know how contractors association all have letters joining and echoing what you said. Thank you.
Yes. All right. And from another contractor?
Yeah. I just want to salute you. I've known your family forever and run with your people. And this is a class act, so I just appreciate that. Thank you much.
Appreciate it. And then, sir, this just again for the record, here's what you didn't get to finish. Construction benefits continue long after a facility is open. Data centers strengthen infrastructure in local communities, and Ohio must remain competitive. We can't hit that hard enough. Five minutes might try to hit home, but it's the course. Thank you, sir. Appreciate you very much.
Thank you very much for giving me an opportunity.
We'd now like to call forward Ms. Kelly Hikes from Norwich Township. On deck, Ronald Katowski, Shalersville Township Trustee. Welcome to committee, ma'am.
Thank you. Chairman Holmes, Chairman Chavez, and members of the Select Committee on Data Centers. My name is Kelly Hikes, and I serve as chair of the Norwich Township Board of Trustees in Franklin County. Thank you for the opportunity to testify today on behalf of myself and my colleagues, Trustee Rothenberg and Trustee Barker. The data center campus currently under development in Hilliard and Norwich Township is expected to be the largest in Ohio The associated fuel center project consisting of 272 natural gas powered fuel cells is expected to be one of the largest facilities of its kind in the world and the largest outside of South Korea. My testimony today is focused on an immediate question. How do we ensure that facilities already approved and under construction operate safely, transparently, and responsibly within the communities that will host them for decades to come. From Norwich Township's perspective, the answer begins with transparency, independent environmental monitoring, and meaningful involvement of local governments and first responders. Despite the fact that Norwich Township will be responsible for emergency response in the event of a fire or other major incident, we were not directly notified about the associated fuel cell development during the permitting process. Nor have we received assurances that comprehensive long-term air quality monitoring will be conducted and maintained. Local governments should not learn of major industrial infrastructure projects after the permits have already been issued. If local governments and emergency responders are expected to protect residents, they should be included in the process before key decisions are made. We encourage this committee to consider requiring the Ohio EPA and Ohio Sitting Board to notify and seek input from all affected local jurisdictions prior to issuing permits. If local government is not provided notice and an opportunity to participate, there should be a mechanism to revisit those approvals after the concerns have been raised. We also urge the committee to establish robust environmental monitoring requirements for large-scale data centers and the energy infrastructure that support them. Monitoring should include not only the data center itself, but also fuel cells, backup generation systems, and any other significant emission sources associated with the facility. That data should be publicly available in real time, independently verified, and retained for future review. Norwich Township has requested third-party air quality monitoring, both inside and outside these facilities, because we believe it's the best way to provide confidence to our residents that the air we breathe is safe. Just as important is the historical data must also be available so that if concerns arise years from now, regulators and local governments can determine whether environmental conditions have changed over time. Transparency benefits everyone. If facilities are operating safely and within applicable standards, the monitoring data provides reassurance. If concerns arise, communities deserve the ability to identify and address them. Our second concern is emergency preparedness and public safety. Data centers and the associated energy facilities present unique operational challenges. They contain complex electrical systems, fuel infrastructure, cooling systems, and other technologies that require specialized planning for emergencies. The local fire department will be expected to respond regardless of who approved the project or who owns the facility. And for that reason, utilities, developers, facility operators, and local emergency responders must work together to develop site plans, emergency response procedures, and fire safety protocols before a facility becomes operational. Unfortunately, Norwich Township has encountered situations where information needed for long-term emergency preparedness has not been made available to local officials. Public safety cannot be a victim of confidentiality. We already have Ohio law already protects legitimate trade secrets from public disclosure No firefighter should be expected to enter a facility of this scale without complete understanding of the hazards that they may encounter We're also concerned that the current law governing these fuel cell facilities place responsibility on drafting the emergency plans with the applicant rather than the local public safety authorities. That approach is inconsistent with traditional emergency management practices, and Ohio should revisit that. I'm just about out of time, so in closing, I will just remind you that because where we're situated, Hilliard had the authority for zoning. Norwich Township has the responsibility for the emergency response. And Shirley Chisholm says if you don't have a chair at the table, bring a folding chair. Norwich Township is bringing a folding chair, but we don't have any authority to require anybody to do anything,
and we would like a seat at that table more officially. Thank you.
Thank you, ma'am. Committee, are there any questions?
All right, just one, and we spoke before committee, so you're in a different, the county was not communicating, Franklin County was not communicating with you. So Franklin County and the city of Hilliard, they have their role, but when it comes to the associated fuel cells, they're looked at as two separate projects, essentially, and the Ohio City Board has responsibility for making those determinations for permitting. They don't include even the city of Hilliard. And we're responsible, ultimately, for our shared residents' health and safety and absolutely for our fire department's safety when it comes to the emergency planning and having them prepared to go in if there is an emergency. So that's where our concern is. And as we said, we'd assume they'd want to have the proper equipment for an emergency.
Okay.
That's right.
Thank you. Thank you for your testimony.
Thank you.
We'd now like to call up Mr. Ronald Kutkowski, Shalersville, and Clint Powell is on deck. Thank you, sir. Welcome to committee.
Thank you. Co-Chair Chavez, Co-Chair Holmes, and members of the committee, my name is Ronald Kutkowski, and I am a trustee in Shalersville Township, Portage County, Ohio. I am here to speak to you today about a large data center that is being proposed in a light industrial area of our township. Geist Corporation, the developer, and Bitdeer, the data company, want to install a data processing center on approximately 300 acres of land in Shalorsville Townships. We have serious concerns about several aspects of this operation. The land is currently zoned light industrial use. I have requested clear definition on light versus heavy industrial from county attorneys, but have not received a definitive answer. The Internet defines heavy industrial as that which requires specialized electrical grids, among other requirements. As you will see in the data that I'm about to provide, the electrical requirements for the proposed center are enormous. When fully operational BitDeer proposes it will consume approximately 750 megawatts per day. To give you a comparison, Portage County has 163,404 people. If you average four persons per household, that is 40,851 homes. One megawatt will power about 800 homes. That means all the homes in Portage County use about 51 megawatts per day. this facility will use 14.6 times the total homes in the county despite the fact that they have proposed to pay for all infrastructure upgrades it is easy to predict this will drive the cost of electricity up for everyone in the greater area due to the simple economics of supply and demand. The next major concern is the usage of water for cooling. While they claim they do not intend to drill wells, our legal team has indicated that we cannot restrict them from doing so. Additionally, there are many concerns regarding environmental issues, particularly light pollution, water pollution from discharge and fire suppression. Perhaps even more important is the potential for noise pollution. Geiss is reporting 50 decibels and are asking for 10 decibels more than that. However, they make no mention of the low frequency sound. Couple that with the backup generators. Just imagine the sound of enough diesel generators running to generate essentially the city of Cleveland. Add to that the potential contamination from exhaust combined with the noise. the effects could be devastating to the local community. Finally, we must cover bonding for reclamation of the site in case of abandonment. Technology is expanding quickly, and this could become obsolete relatively soon. Local mining operations have to bond for reclamation, so this is not unheard of. We could also bond for revenue issues. My responsibility is to my constituents, and I take this very seriously. With the concerns I have outlined, we, three trustees, are completely overwhelmed. We started with a six-month moratorium last November and extended it for an additional six months in the spring. It will expire in November. During these past several months, we have hosted meetings, both public and executive, gathered as much information as has been available and even traveled to another site currently in operation in Maslin. While we can all agree that data centers are going to be necessary for prosperity, we must also design each so that it's an asset to the local community, not a detriment. They must be able to coexist in harmony. Moving forward, we need the expertise it will take to determine how to come up with conditions for this and enforcing it once in operation. If you are able to help us with extending our moratorium beyond November, it would provide additional time for gathering knowledge and navigating this complex issue. To aid in our quest for expertise, we will also require funds to pursue answers. We will be petitioning our county commissioners for help because we know this proposed center will affect everyone in the county.
One minute.
We are a small township and have always been fiscally responsible, but this is beyond the scope of anything previously proposed. Funding at the state level will be essential to achieving our goal responsibly. And I'll close with this. Yesterday at church I had a conversation with 95-year-old Joanne Codwell. Joanne and retired truck driver Ron Pyatt, her neighbor, are the closest next-door neighbors to the proposed data center. Joanne told me that she is putting this in God's hands. This means that you and I have to do the right thing and make sure any data centers in Ohio are an asset to the local community and that they are good neighbors. In my mind, Joanne and Ron are the gold standard that we have to protect. I will try to answer any questions you may have. Thank you.
Thank you, sir. Committee, are there any questions?
One question from me, sir, then. Can you explain your relationship with your county commissioners and how that's the communication? Is that a positive thing, or how is that work?
Yeah, we've had positive communications with our county commissioners And with our county prosecutors, you know, I have a hard time getting straight answers, like is this light industrial or is it heavy industrial?
Yeah.
You know, when I asked, they said, well, when you find out, let us know. You know, so I don't know if you guys have any definitive answers on that. You know, and none of the people in our township, you know, all the talk that's gone on today about Facebook and social media, I haven't run into a single resident that is for this. And I think a lot of that is due to information, whether true or misinformation, that they're getting on the Internet.
Representative Workman. Thank you, Mr. Chairman. Thank you, Ron, for coming down today. I'm sure it was a long drive for you. We appreciate it. I guess I'm curious about the legal fees. I'm assuming that you've had to consult legal. What does that look like for you, and where does that funding come from?
Well, it comes out of our general fund. And as of now, we've hired a law firm out of Canton to help us navigate through this. They're not cheap. We're a small township. We like to be fiscally responsible. We're just overwhelmed. This is a big thing. I've learned a lot today, but this is a big deal for us. We've never had anything like this in our township. We're a small, semi-rural township, and it's just a lot. We just need help.
Thank you, sir. Thank you for your testimony.
All right, we'd now like to call Clint Powell, Ohio Laborers District Council. Mr. Mark Douglas is on deck. Thank you, sir. Welcome to committee. Thank you.
Chair Holmes, Chair Chavez, and members of the committee, thank you for the opportunity to provide testimony today. My name is Clint Powell, and I serve as the business manager, secretary-treasurer of the Ohio Laborers District Council, where I represent over 20,000 construction laborers. Our members are the hardworking individuals who build and maintain Ohio's roads, bridges, underground utilities, renewable energy systems, industrial sites, data centers, and much more. I come before you today not only as a 31-year member and leader of the Ohio Laborers Union, but also a 50-year resident of eastern Ohio with vested interest in this state and its residents. I grew up in Ohio, my family lives in Ohio, and I care deeply about the state and its future. I'm here today to share the positive impact that data center development has had on our members and opportunities these investments continue to create for working families and local communities throughout our state. Over the past five years, our members have experienced more than 20% increase in work hours, driven in large part by unprecedented level of investment and data centers in related infrastructure projects across Ohio. These projects have created thousands of good-paying construction jobs, allowing our members to build rewarding careers while helping construct the critical infrastructure that supports our modern economy. In 2025, Ohio Labor has recorded nearly 25 million work hours, the highest annual total in our organization's history. Of that $25 million, an estimated 5 to 7 million hours came from data centers. The momentum continued in 2026, with hours' work increasing by an additional 8% during the first quarter compared to the same period last year. These numbers are significant, and they represent life-changing opportunities for high laborers, their families, and individuals seeking careers in the construction industry. Through our collective bargaining agreements with nearly 1,000 participating union contractors, we are able to provide these benefits without reliance on government programs Our jointly managed labor management funds support retirement pension health care training and annuity benefits that help workers build long financial security while ensuring they have access to the skills and training necessary to meet the demands of rapidly evolving construction industry. Continued investment in data centers and other large-scale infrastructure projects has strengthened our ability to recruit, train, and retain the next generation of skilled construction professionals. In 2025 alone, the Ohio Labor's apprenticeship enrollment grew by over 13 percent year over year to a record of 1,145 current labor apprentices in Ohio. These individuals are earning while they learn, building careers that provide family, sustaining wages and benefits, and they represent the next generation of skilled professionals that Ohio's growing economy will depend on. Our economy is expanding, and with it comes increasingly demand for digital infrastructure, electric generation, and supporting facilities. Data centers are a critical component of that future, and Ohio is well positioned to lead. As representatives from Meta, Google, Amazon, and Microsoft noted at last Thursday's hearing, our state has an extremely robust, skilled workforce that attracts new industries. These investments allow our members to live and work in the towns where they grew up, build careers, support their families, and strengthen their communities. While every project should be evaluated on its own merits and with consideration for local impacts and priorities, the evidence is clear. For working people, data centers represent something very real, good jobs, local investment, and economic opportunity, opportunity, particularly in towns and rural areas that have otherwise been left behind. Data center development is not just building infrastructure, it's changing the lives and trajectories of thousands of Ohioans. Let's not let that momentum in our state slip away. Thank you.
Thank you, sir. Thank you for your testimony. Committee, are there any questions?
Co-Chair Chavez. Thank you for your testimony. So we've heard a lot today. We've heard a lot over the previous committees. The thing that I just am struggling with is today's society, everything's binary. So we've heard a couple times today everyone's against it. We've heard that it's good stuff. I mean, your testimony speaks for itself, but I'm just trying to – how do we reconcile that? I mean, you represent 20,000 people, right? So how do we tell the story of what reality is? Because I'm sure it's not all rainbows and butterflies. I'm sure construction causes some dust. I'm sure there's some things that are done during the initial phases that are mitigated. But, I mean, what's your sense of the overall impacts? It's just I think, in my opinion, some of the messaging was late. I don't think it's anything new of what we've been dealing with, especially in eastern Ohio, known as a rust belt. and a lot of the other areas in Ohio are industrial as well. So, you know, when I look at the data centers compared to our Coke batteries that we had in our area, a lot of the nasty byproducts, you know, the facilities that we had in our area, coal-fired power plants, you know, just all the dirty industry. We need all those, you know. But unfortunately, a lot of those industries left and the jobs went with them, especially in my area, on eastern Ohio, in your area. But my message is I mean data centers isn even comparable to the amount of pollution they put off to the power usage to the water usage I think they demolishing Stratton Power Plant right now First Energy site I believe it used around 25 million gallons of water per year, if not more. That's just some of the stuff I've researched. Also, just to top that off, in eastern Ohio, we saw the same thing. with the gas oil industry. We saw the outrage and the people, which is, you know, I'm not downing them. I mean, great. They care about where they live. They care about the impacts. They care about the environment. But once all that started rolling, the pipeline industry, everybody I talked to was pretty happy, especially the farmers. I mean, I know an old farmer out in Smithfield, Ohio, and he's 80-some years old, and he had a couple pipelines going across his property. He didn't retire. he bought some new farm equipment. So there's a lot of good things that happen with new industry. And like we all heard today and last week, we need to keep up with the technology and keep Ohio out front. I mean, look at our state, the history of our state, and the progress and the people that we have here. We have strong, tough people that just want to go to work and go home to their families. You know, so.
Yes, sir. Any questions? Seeing none, thank you, sir. Thank you for your test. Thank you. Thank you, Chair. Ladies and gentlemen, three more to go. We'd now like to call Mr. Mark Douglas from the Ohio State Building and Construction Trades. Thank you, Mr. Douglas. Jeff Hundley and then Robert Cole. Thank you, sir. Welcome to committee.
Thank you very much. Chairman Holmes, Chairman Chavez, and members of the Select Committee on Data Centers, I want to thank you for the opportunity to be here today. My name is Mark Douglas. It's my honor to serve as the Executive Secretary-Treasurer of the Ohio State Building Construction Trades Council. Our organization represents over 124 local unions and over 100,000 building tradespeople across Ohio. Our unions represent 12 different trades, and they are the highest skilled and safest construction workforce in Ohio. Today, Ohio's construction workforce is stronger than ever, due in large part to the steady work and apprenticeships that data center projects have created. Tens of thousands of Ohio construction tradespeople have been building our state's digital and physical infrastructure for the past two decades. The construction industry right now is booming. Our council projects a sustained growth of 13 to 15 percent across the building trades over the next decade to meet the labor demand market. The demand is driven largely by the Tech Center's $40 billion investment in data center construction in Ohio. And building trades employment spurs bottom-up growth in Ohio's local economies. For too long, blue-collar industrial-based communities across Ohio have been left behind in the economic development for a generation or more. In some regions, there's been limited economic growth from the recovery of these lost manufacturing and industrial jobs. Construction of data centers and their utility infrastructures are reviving Ohio's economy. We see it every day across the state. There are projects in every corner of our state right now building facilities to support the data center industry. Places where viable sites and existing infrastructure are ideal for building the state's high-tech industry and putting Ohioans to work. The dominoes of this industry are stretching all across Ohio, and putting our members to work not only on data centers themselves but also on supporting facilities I like to give you an example of IBW Local 1105 in Newark Ohio In 2015 Local 1105 membership was 220 members In just 10 years, in 2025, it was 3,000 members, and it continues to grow. Over a five-year period, data centers and tech center construction growth has increased apprenticeship enrollment in the Newark Building Trades Training Center from 95 registered apprentices in 2022 to over 900 apprentices training at 1105's JTC now in 2026. This trajectory reflects that 1105 is the fastest-growing electrical apprenticeship program in the United States, driven by a regional workforce demand and strong industry partnership largely in the data center and high-tech sector. The JTC in Newark is building a 92,000-square-foot facility in Heath, Ohio, located in a former Sears building, which will serve as the premier regional destination for electrical workforce development. They are taking a blighted building in their community and turning it into something that will pay incredible dividends in the future. And that impact is long-term, not temporary. And I would like our members' careers to be respected and not categorized as temporary. You join and complete a three- to four-year apprenticeship program that has been invested in by our current members with dollars they allocate from each hour they work, as well as our contracting partners. That investment can be up to $50,000 per apprentice when they complete their time. Some of these programs are college accredited, and an investment of that scale will not be done for temporary jobs. They're invested in for careers. A union construction career doesn't work the same way as an office job or a warehouse job. Our members work to finish one project for a climate, and then we move on to the next project. A steady pipeline of projects makes a 30-year career. Our members get up every day at the crack of dawn, show up to make sure that our customers get what they expect when they hire us, productivity and professionalism. Our members work in every type of condition to make sure our project is completed on time and under budget. Every day they're working themselves off the current project they are on with the expectation that there will be another project for our contractors to bid on and secure. One minute. The data center industry is a critical partner in providing those opportunities to our members and their families. During my career when I was working in the field, there was no more stressful time than when work started to slow down and you weren't sure if there was another project to go to. You were worried about house payments, groceries, health care bills, and keeping insurance for your family and making sure they were being taken care of. Data centers have removed the stress of what the next job is for Ohio tradespeople. Data centers' initial construction jobs last four to six years on average, with ongoing maintenance contracts to put food on the table for working families. Our members helped drive the state economy and for over a century our members have built this state and they have earned the right for their jobs to be respected in the training they take and be called what they are, careers. Thank you.
Thank you, sir. Thank you for your testimony. Committee, any questions?
Representative Glasper. Thank you, Mr. Chair. You mentioned in your testimony the project going into a former Sears. My home community has one of the last and one of the most successful shopping malls, Great Northern Mall. And our city has had to spend millions to acquire and demolish places like JCPenney. Can you speak to how that project came to be and anything else you could tell us about how we could get more projects like that?
Chairman Chavez, Chairman Holmes, Representative Glaspern. It's because of the demand, frankly. You know, the growth, they added on in 1105 JTC once, built a facility they thought was going to be adequate. continued to investment in that local community, kept coming. Their expansion, as I mentioned, was just exponential almost. So they looked to reach out to what's the best thing, what makes the most sense, because it's their members' money in the building trades there that are going to be used to spend that. So they wanted to find the best bang for their buck, and being able to find that facility available seemed to be a great move, and I think it's a good improvement for their community. And I'm from the Akron area myself, so we've had different malls had to be knocked down entirely. They become blights on the community, and sometimes there's bad actors wanting to hang around those facilities, and they become unsafe. So that's a great use, I think, of that former Sears facility to become a training center.
Seeing no further questions, thank you, sir. Thank you. We'd now like to call Mr. Jeff Hundley, Sheet Metal Workers, Local 24, and Robert Cole. Thank you, sir. Welcome to committee.
Thank you. Co-Chair Holmes, Co-Chair Chavez, members of the Joint Committee on Data Centers. Thank you for the opportunity to testify before the committee. My name is Jeff Hundley. I'm a sheet model worker by trade, a trustee of the Columbus Central Ohio Building and Construction Trades Council, and the business manager, financial secretary-treasurer for Sheet Model Workers Smart Local 24. I represent over 2,000 sheet model workers who live and work in 49 counties across central and southern Ohio. Ohio's demand for skilled sheet metal workers is at an all-time high, in large part because of the unprecedented growth in data center construction and the infrastructure needed to support it. These projects are creating thousands of family-sustaining careers today, while also generating long-term employment opportunities that will continue well beyond the initial construction phase through ongoing maintenance, expansion, and modernization work. These are not one-time jobs that can often sustain careers of our members. For the members of Smart Local 24, data centers represent more than construction projects. They represent careers, our contractors are hiring, our apprenticeship classes are growing, and Ohio workers are finding opportunities to build a future in the skilled trades without leaving their communities Smart Local 24 members earn industry wages and benefits including comprehensive family health care coverage retirement security and ongoing skills training Those earnings do not leave Ohio. They are spent in local communities through homeownership, small business purchases, taxes, and everyday consumer spending. Every paycheck earned on a data center project supports local restaurants, retailers, service providers, schools, and public infrastructure through the 49 counties we would represent. The economic impact extends far beyond the job site and strengthens communities across the state. In addition to excellent wages and benefits, Local 24 members receive no-cost journeyman upgrade training throughout their careers. Safety remains our industry's top priority, and our members complete industry-leading training at our state-of-the-art training facilities to ensure they're prepared for the highly specialized work required on data center projects. We are currently recruiting and training more apprentices than at any time in our history. Through our paid, tuition-free, registered apprenticeship program, Ohioans can enter the workforce with no prior experience and build a pathway to a lifelong career. Data Center's growth is creating opportunities for a new generation of skilled tradespeople entering the construction industry and building successful careers in the trades. The members of Smart Local 24 want Ohio to remain a national leader in digital infrastructure. We support sensible policies that encourage responsible development while ensuring local communities benefit from the investment. Data centers are creating jobs today, sustaining careers for decades to come, and generating economic activity that strengthens Ohio's workforce and local economies. I urge Ohio legislators to support the continued growth of the data center sector, which has already created significant opportunities for workers across the state and will continue to provide family-sustaining careers and economic benefits for communities across the state. Thank you for your consideration.
Thank you, sir. Thank you for your testimony and your patience. Are there any questions? Seeing none, thank you, sir. Thank you. And finally, we'd like to call Mr. Robert Cole, Ohio State Building and Construction Trades. Thank you for your patience, sir, and welcome to committee.
Thank you Chairman Holmes Chairman Chavez members of the joint committee Since I the last thing between everybody in here and a cold drink I be brief Thank you for the opportunity to be here today. My name is Robert Cole. I'm a proud 36-year member and retired business manager for Plumbers and Pipefitters Local 577 in Portsmouth, Ohio. I currently serve as the president of the Ohio State Building and Construction Trades Council. The Ohio State Building Trades Council represents 124 local unions, 12 different crafts, and over 100,000 journey people and apprentices in the state of Ohio. I'm here on behalf of all of those trades people today. I'm here to testify specifically on the tremendous growth data center investment has created in Ohio's plumbing and pipe-fitting industry. I'm also here to remind the legislature that the $40 billion data center sector is critical to the growth of the middle class construction careers in Ohio's 32 Appalachian counties. In southeast Ohio, early 2009, we finished the last of our scrubber projects on our coal-burning power plants. That, combined with the recession of 2008, work in southeast Ohio came to a screeching halt. I myself had to travel out of state for employment for about four years. In 2012, I was elected as business manager for Local 577 and became responsible for finding our members' employment. Over the course of the next several years, we had members working from North Dakota to Mississippi, from California to Massachusetts. And when the data center boom started in central Ohio, our members of Local 577 were able to travel to central Ohio instead of all over the country and put food on their table with steady work, mostly in part because of data centers. They were able to sleep in their own bed, spend more time with their family. Let's look at the numbers from Local 577 from 2021 to 2025. Our members which was 50 to 100 members that fluctuated from time to time They worked a total of 463 man in Central Ohio Tech projects They earned a cumulative wages of $24,877,932 and earned health care and retirement benefits of $12,728,827. All these years of traveling around the states, different states, building major projects, data centers all over the United States, we are excited to see the tech industry grow and come to our hometowns in southeast Ohio. Right now we have a Google data center project getting ready to start in Scioto County, Ohio. we have the potential of another major data center project in Adams County, Ohio, not to mention the most recent major announcements in Pike County, Ohio,
at the former gas disdiffusion plant for the massive gas-powered generation plant and data center campus proposed by SoftBank. In closing, I would like to say that anything that is done to slow down or halt the progress of data center industry in Ohio would be a great tragedy for the men and women in the construction industry. Yes, thank you, sir. Thank you very much.
Committee, any questions?
Then just one question for me, sir. What a wealth of opportunities. Do you feel, do we have enough workforce? How do you feel about that right now?
It'll be a major challenge. As you know, the population of southeast Ohio is not like it is in central Ohio. So it'll be a major challenge. It's just going to be about organize, organize, train, and whatever we have to do to be able to meet those demands.
Yes, sir.
Yes, sir.
Thank you.
Thank you for your testimony. Committee, I'd like to point your attention to several pieces of written-only testimony that you could see. Is there any other business to come before the committee today? Thank you, everyone, for your participation. Seeing none, we stand adjourned.