Sponsors tell committee HB 646 would create data center study commission to assess impacts

Representatives Klick and Dieter told the House Technology and Innovation Committee that House Bill 646 would establish a statewide data center study commission to evaluate the rapid expansion of data centers in Ohio and recommend best practices or legislation.

Representative Klick said constituents in his district have raised concerns about loss of agricultural land, local water supply impacts, wastewater disposal, strain on the electric grid, higher utility rates for ratepayers, noise and light pollution, electromagnetic-field health concerns, and excessive tax abatements that have not produced promised economic benefits. "A statewide data center study commission makes sense," Klick said, arguing the commission would provide a consistent, resourced review rather than placing repeated burdens on small local governments.

Klick described commission mechanics: at least four public meetings (two for the general public and two for specialist stakeholders including agriculture, energy, economic development and national security), and a requirement to report to the General Assembly within six months. He also said the bill includes an emergency clause, which would accelerate appointment timelines if retained through the legislative process.

Representative Dieter cited data and analysis from the Ohio Chamber and the Weldon Cooper Center and described the sector’s growth: since 2014 data center development has surged and projections show substantial regional growth by 2030. Dieter said modern data centers can demand 10 to 40 times more power than older facilities, build in one to two years while grid infrastructure can take longer to expand, and that concentrated development raises risks for reliability, affordability and long-term planning.

Committee members asked about membership criteria, compensation and whether the commission should examine community benefits such as prevailing wages, apprenticeships or certified payroll tied to public incentives. Klick said the bill intentionally leaves appointment discretion to legislative and executive leaders rather than prescribing narrow membership slots, but the committee may amend membership criteria. Klick also said compensation language ($250 per meeting) was suggested by LSC to attract qualified external members and that remote participation logistics would be addressed.

Members questioned whether a statewide moratorium on projects during the study would be appropriate; Klick said a moratorium was considered but could slow the process and unfairly constrain localities that welcome projects. Representative Ty Matthews urged coordination between this study and an upcoming quantum-technology commission to avoid duplicated effort.

The committee did not take a vote; the chair concluded the first hearing and encouraged sponsors and witnesses to return with additional materials.