Data center development is rapidly expanding across central Ohio, with companies acquiring more than 2,000 acres of land in the Columbus area over the last two years. This surge in land acquisition, driven by the growing demand for digital infrastructure, is reshaping local economies while also raising questions about resource allocation and the best use of regional land.
According to a recent report from the global real estate firm JLL, nine different data center operators have purchased large tracts of land, ranging from 80 to 500 acres each. While these facilities bring significant investment and tax revenue, communities are beginning to examine the long-term impacts on power grids, water supplies, and land availability for other types of development like housing or traditional industry.
Key Takeaways
- Over 2,000 acres of land in central Ohio have been purchased for data center development in the past two years.
- Nine hyperscale data center companies are involved in these large-scale land acquisitions.
- The boom is driven by Ohio's favorable conditions, including reliable energy infrastructure and tax incentives.
- Communities face a trade-off between the economic benefits of data centers and the strain they place on local resources like land, power, and water.
A Land Rush for Digital Infrastructure
The demand for land by data center operators in central Ohio has reached an unprecedented level. The JLL report, published in August, highlights a significant trend where companies are securing massive parcels to build hyperscale facilities. These are not small server rooms but enormous complexes designed to support the infrastructure of global technology giants.
The acquisitions are concentrated in what is becoming known as a key data center corridor. The scale of these purchases is notable, with individual sites often exceeding 100 acres. This activity indicates a long-term strategic investment by the tech industry in the region's capacity to support digital growth.
This rapid acquisition has transformed central Ohio into one of the most active data center markets in the country. The land is being taken off the market for other potential uses, sparking a debate among local officials and residents about the future development path for their communities.
What is a Hyperscale Data Center?
A hyperscale data center is a massive facility designed to be highly scalable, capable of supporting thousands of servers and vast amounts of data processing. They are typically operated by major technology companies like Amazon, Google, and Meta to power their cloud computing services, social media platforms, and other digital offerings.
Why Central Ohio is a Prime Location
Several key factors make central Ohio an attractive hub for data center development. The region offers a combination of reliable infrastructure, strategic location, and favorable business conditions that appeal to technology companies looking to expand their physical footprint.
Infrastructure and Connectivity
One of the most critical factors is the region's robust and reliable power grid. Data centers are enormous consumers of electricity, and a stable power supply is non-negotiable. Ohio's energy infrastructure provides the dependability these facilities require to operate 24/7 without interruption.
Additionally, central Ohio is rich in fiber optic connectivity, which is essential for transferring large amounts of data quickly. The state's history as a business and logistics hub means it has well-developed network infrastructure that data centers can tap into.
Economic Incentives and Land Availability
State and local governments have actively courted the industry with significant tax incentives. These programs often provide exemptions from sales and use taxes on data center equipment, which can save companies hundreds of millions of dollars on a single project. Such incentives make building in Ohio more cost-effective compared to other states.
Historically, the region has also offered available and relatively affordable land suitable for large-scale construction. While the recent land rush has driven up prices, the availability of large, undeveloped tracts has been a major draw for developers needing hundreds of acres for a single campus.
Power Consumption Facts
Data centers are among the most energy-intensive facilities in the world. A single large data center can consume as much electricity as a small city. According to some estimates, data centers account for approximately 1-2% of global electricity consumption, a figure that is expected to grow.
The Economic Benefits for Local Communities
The arrival of data centers is often welcomed by local officials who point to the substantial economic benefits. The primary advantage is the significant increase in local tax revenue. Because these facilities house billions of dollars worth of equipment, their property tax contributions can be transformative for local school districts, emergency services, and municipal budgets.
The construction phase also provides a temporary boost to the local economy, creating hundreds of jobs for tradespeople over several years. Once operational, however, data centers employ a relatively small number of highly skilled technicians and engineers. While these are high-paying jobs, the overall job creation is low compared to a traditional factory or corporate office of a similar investment scale.
"These facilities represent a major capital investment in our community. The tax revenue they generate supports our schools and public services in a way few other industries can," a local economic development official might state.
Rising Concerns Over Resource Use and Land Allocation
Despite the economic upside, the rapid growth of data centers has prompted concerns among residents and planners. The debate centers on whether these facilities represent the best long-term use of finite local resources.
Competition for Land
The acquisition of over 2,000 acres in just two years highlights the intense competition for land. Data center companies, often backed by significant capital, can outbid other developers. This has raised concerns that land that could be used for much-needed housing, mixed-use developments, or other job-creating industries is being permanently committed to these massive, windowless structures.
Strain on Utilities
Beyond land, the primary concern is the immense strain on the electrical grid. As more data centers come online, the collective demand for power could challenge the capacity of local utilities. This raises questions about the need for new power generation and transmission infrastructure, and who will bear the cost.
Water usage is another growing concern. Data centers use large amounts of water for their cooling systems. In regions facing potential water scarcity, allocating millions of gallons of water per day to these facilities is becoming a point of contention.
Community and Environmental Impact
Finally, residents living near proposed data center sites often raise concerns about noise pollution. The large-scale cooling equipment required to keep servers from overheating can generate a constant, low-frequency hum that affects quality of life. The visual impact of these sprawling, stark industrial buildings on the landscape is another factor communities must consider.
Balancing Growth with Sustainability
The data center boom in central Ohio presents a classic development dilemma. The promise of high-value investment and tax revenue is a powerful incentive for communities eager for economic growth. These benefits provide direct funding for public services that benefit all residents.
However, the long-term costs are becoming clearer. The consumption of land, power, and water resources at such a large scale requires careful planning. Communities must weigh the immediate financial gains against the potential for future resource shortages and the loss of land for other vital needs like housing.
As central Ohio continues to attract the digital economy, the conversation is shifting from simply celebrating new projects to critically evaluating their long-term sustainability and their place in a balanced regional development strategy.
