With several data centers already operating or under development in Licking County - and additional projects being considered - it is important for community and business leaders to understand both the opportunities and the challenges associated with this rapidly growing industry.

At a recent discussion, representatives from the Montrose Group provided an overview of national data center trends and the potential economic and community impacts of these projects. John Seryak, founder and Managing Partner of Go Sustainable Energy and energy consultant for the Ohio Manufacturers’ Association, also discussed the energy demands associated with data centers, the differences between grid-supplied and behind-the-meter power, and recent developments involving utilities and state agencies.

Data centers are facilities that store, process, and distribute large amounts of digital information. Although many people may never see the inside of one, data centers support services we rely on every day, including banking, credit card transactions, healthcare records, cloud storage, streaming services, airline reservations, GPS navigation, social media, emergency systems, and artificial intelligence.

Demand for this infrastructure is growing quickly. According to information shared by the Montrose Group, the global data center sector is projected to nearly double in capacity between 2025 and 2030. Ohio has become an attractive location because of its available land, central location, existing cloud infrastructure, and proximity to major population and business centers. Investments announced by companies such as Amazon Web Services, Google, Meta, and Microsoft have positioned Ohio as one of the country’s growing data center markets.

From an economic development perspective, data centers can bring significant capital investment. They frequently pay more for land than traditional industrial developments, increasing the taxable value of previously undeveloped property. Their construction can span several years and employ hundreds of construction workers. Permanent positions and contractor jobs associated with the facilities also tend to offer competitive wages.

However, data centers generally create fewer permanent jobs than advanced manufacturing facilities occupying a comparable amount of land. Montrose Group representatives explained that this makes it especially important for communities to carefully evaluate the overall return on investment and negotiate agreements that provide long-term value.

Community benefit agreements can establish expectations related to capital investment, employment, infrastructure improvements, local government and school compensation, water and sewer usage, noise limitations, environmental studies, emergency planning, and other community priorities. Some communities also establish minimum income-tax thresholds or payments in lieu of taxes to help address the difference between the number of jobs created by a data center and those created by a more labor-intensive employer.

Energy was another major focus of the conversation. Data centers require substantial amounts of electricity to power servers, networking equipment, and cooling systems. Seryak explained the distinction between facilities receiving electricity through the regional power grid and those exploring behind-the-meter generation, in which some or all of the needed power is generated closer to or directly at the site.

He also emphasized that rising electricity costs are the result of multiple factors affecting the broader energy market and should not be attributed solely or directly to data centers. At the same time, the significant projected demand from data center development creates legitimate questions about future generation capacity, transmission infrastructure, reliability, and how the costs of necessary system improvements will be allocated. Utilities, regulators, state agencies, energy producers, and large power users are continuing to work through these complex issues.

Water use and noise are also important considerations. Cooling technology varies considerably among facilities, and some data centers use closed-loop systems that significantly reduce ongoing water consumption. Because usage can differ by facility and technology, communities need accurate, project-specific information before evaluating potential impacts. Noise from cooling equipment and backup generators can similarly be addressed through appropriate site design, setbacks, buffering, operating standards, and development agreements.

The discussion made clear that data centers are neither without benefit nor without impact. They support the digital infrastructure used by residents, businesses, healthcare providers, schools, and public institutions, while also offering substantial investment and tax-base opportunities. At the same time, their demands on land, electricity, water, and local infrastructure require careful evaluation and thoughtful planning.

For Licking County, the most productive approach is to continue asking questions, seeking reliable information, and ensuring that future projects provide measurable, long-term value to the communities in which they locate. As this industry continues to evolve, informed decision-making and transparent conversations will be essential to balancing economic opportunity with infrastructure capacity and the interests of residents, businesses, schools, and local governments.