The landscape of Ohio’s data center industry is becoming a pivotal issue in the state’s gubernatorial race. Democratic candidate Amy Acton has unveiled a comprehensive plan to regulate new data center projects, while her Republican opponent, Vivek Ramaswamy has shared his perspectives on the matter. Both candidates aim to address the significant environmental and economic impacts of these facilities, but their approaches differ markedly.

Acton’s proposal, announced on Monday, outlines a series of conditions that new data centers must meet before gaining approval. These conditions focus on energy costsunion labortransparencyenvironmental standards and siting. The plan has sparked discussions about the future of Ohio’s data center industry and its role in the state’s economy.

Acton’s Proposal: A Conditional Moratorium

Acton’s plan is framed as a conditional moratorium suggesting that new data centers would be banned unless they comply with her outlined conditions. Key aspects of her proposal include:

  • Energy Costs Data center operators must demonstrate that their projects won’t contribute to rising electricity costs and pay for their own gas, water, and electricity.
  • Transparency The plan aims to end the practice of signing nondisclosure agreements with local officials, ensuring residents are informed about projects from the outset.
  • Union Labor Acton requires the use of union workers for the construction, maintenance, and operation of data centers, a move supported by organized labor groups due to the job opportunities these projects provide.
  • Environmental Standards The plan sets standards for water use, air quality, and quality of life to mitigate the environmental impact of data centers.
  • Siting Data centers should be built on brownfields—abandoned commercial or industrial sites—rather than on farmland or other undeveloped land.

However, it remains unclear which parts of Acton’s plan can be implemented administratively and which would require approval from the Republican-controlled state legislature. Additionally, her plan does not propose ending or reducing the state’s lucrative data center tax exemption, which has been a point of contention among both Republicans and Democrats.

Ramaswamy’s Perspective: Balancing Growth and Responsibility

Vivek Ramaswamy, the Republican billionaire entrepreneur running against Acton, has not yet released an official data center plan. However, he has shared his thoughts on the issue during public appearances. Ramaswamy views data center construction as part of the reindustrialization efforts championed by President Donald Trump during the 2026 election. He emphasizes the importance of ensuring that data center projects do not pass the cost of their electricity use and grid upgrades to everyday customers.

“If you use energy, you either bring your energy or you pay for the energy that you use. Period,” Ramaswamy stated in a June interview with conservative Cleveland-area radio host Bob Frantz. He believes that if managed correctly, data centers could drive down costs for other ratepayers by paying for a relatively greater share of the

Ramaswamy also highlighted the importance of siting suggesting that developers should first consider building their projects on brownfield sites, similar to Acton’s proposal. However, he did not describe it as a hard requirement. He stressed the need for a leader’s will to navigate the nuances of data center development responsibly, avoiding both unchecked growth and outright bans.

During a appearance before the Jefferson County Republican Party, Ramaswamy described Ohio’s data center boom as a good thing emphasizing the need to address the immense electricity demand these facilities generate. He proposed making it faster and easier for companies to build power plants and natural gas pipelines, as well as data centers, to support this growth.

Public Opposition and Regulatory Reversals

The debate over data center regulations in Ohio has also been influenced by public opposition. Recently, the Ohio Environmental Protection Agency considered a proposal that would have allowed data centers to avoid project-by-project environmental reviews by covering them under a general wastewater discharge permit. This move was met with substantial resistance, with roughly 7,000 comments opposing the change.

The proposed policy would have streamlined the approval process for data centers, potentially accelerating their development. However, opponents argued that moving faster was not a sufficient reason to weaken oversight, especially given the significant water and power demands of these facilities. The agency ultimately abandoned the proposal, ensuring that data centers will still need individual permits rather than blanket approval.

This reversal marks a notable win for residents concerned about the environmental impact of data centers. It also highlights the growing national trend of communities pushing for greater control over who benefits from and who bears the risks of these large-scale projects.

As Ohio’s gubernatorial candidates continue to shape their stances on data center regulations, the state’s approach to this rapidly growing industry remains a critical issue for residents and businesses alike.