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Ohio Data Center Study Favors Renewable-Powered Sites or Halt to New Builds

A Scioto Analysis review found that requiring new data centers to generate their own power with 90% renewables would deliver the strongest modeled public benefits, with a moratorium on new construction ranking second. The findings come as Ohio weighs the electricity demand, pollution and public subsidies tied to a fast-growing industry.

Ohio Data Center Study Favors Renewable-Powered Sites or Halt to New Builds
A new cost-benefit analysis of Ohio’s data center boom ranks a requirement that new facilities generate their own electricity using at least 90% renewable energy as the strongest option for the public. A ban on new data center construction ranked second, ahead of continuing current policies, according to the study by Columbus-based Scioto Analysis. The analysis, published in October 2026, modeled outcomes from 2027 through 2034 using five scenarios and 10,000 simulations. Its benefit-cost ratio for the status quo was 1.04, meaning estimated benefits only slightly exceeded costs. The ratio was 2.9 for data centers using 90% renewable power and 10% natural gas, and 2.7 for a ban on new construction. The other modeled options were facilities powered by a 50-50 mix of gas and renewables, with a ratio of 2.5, and facilities using 90% gas and 10% renewables, with a ratio of 2.2. Both power-generation requirements assume data centers produce power on-site, rather than relying on the grid. Ohio ranks fourth nationally in data center count, behind Virginia, Texas and California. The state has committed at least $2.3 billion in sales-tax breaks for the industry, while communities and ratepayers face questions about the costs of new power demand and pollution. The study credits data center development since 2013 with 96,000 jobs and $62 billion in social benefits. But it projects that if all planned projects come online by 2028, Ohio’s data center count would grow by half, while the sector’s annual electricity use and carbon emissions would more than triple. It estimates that Ohio data centers currently use as much electricity as 5.7 million homes, compared with 5.4 million homes statewide; by 2028, their demand could equal about 3.5 times the number of homes in Ohio. Rob Moore, Scioto Analysis’ principal, said pollution costs that businesses do not pay can affect the broader public through poorer air quality, heart and lung conditions, and increased carbon emissions. The study’s authors cautioned that their conclusions hinge on employment estimates. If data centers create substantially more jobs and earnings than assumed, a ban or renewable-energy requirement could have negative net benefits. If job gains are lower than estimated, the alternatives become more favorable. Across the study’s sensitivity tests, the status quo was the option most likely to have costs exceeding benefits.

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