Rep. Rader: New Report Warns Ohioans Could Pay Billions for Data Center Expansion as Statehouse Fails to Act

COLUMBUS - State Representative Tristan Rader (D-Lakewood), Ranking Member of the Ohio House Energy Committee, is calling for immediate legislative action following a new report from Ohio-based research firm Scioto Analysis warning that unchecked data center expansion could impose billions of dollars in costs on Ohio families, businesses, and communities.

The report estimates that under current policies, data center growth could cost Ohio electricity customers $16 billion in higher utility costs between 2027 and 2034, while generating an additional $41 billion in air pollution damages. Meanwhile, Ohio's data center sales and use tax exemption cost the state an estimated $1.6 billion in forgone revenue in 2025.

"We are watching a financial crisis develop in real time, and the Ohio Statehouse is failing to respond," said Rep. Rader. "We have allowed some of the wealthiest corporations on Earth to receive billions in tax breaks while Ohio families face the prospect of billions more in electricity costs. At this point, our continued inaction isn't just disappointing — it's irresponsible."

The study projects that electricity consumption from Ohio data centers could increase by 255% between 2026 and 2028 if planned developments proceed. In simulations testing thousands of potential outcomes, researchers found that maintaining current policies produced a median net social loss of $6.7 billion between 2027 and 2034.

The report also offers a path forward. Researchers found that requiring new data centers to supply their own electricity, particularly through renewable energy, could substantially improve economic outcomes while reducing costs to ratepayers and public health.

"This is not about opposing technology or economic development. It's about who pays," Rep. Rader continued. "Ohioans should not be forced to finance the electricity infrastructure of trillion-dollar technology companies. If these corporations want to build here, they need to pay their own way."

Rep. Rader is calling on legislative leaders to immediately advance protections that:

• Stop cost shifting by requiring data centers to pay the full costs of the electricity generation, transmission, and infrastructure their demand creates.
• Establish enforceable data center utility standards, including long-term financial commitments and safeguards protecting existing customers.
• Reconsider Ohio's generous data center tax exemptions and require transparency and measurable public benefits from taxpayer-supported projects.
• Prioritize clean, dedicated power generation rather than shifting additional pollution and energy costs onto Ohio communities.

Rep. Rader has been working on bipartisan legislation to establish stronger requirements for large electricity customers, including House Bill 706, while also advocating for changes to Ohio's data center tax incentives.

"The warning signs have been flashing for months. We know electricity demand is growing, we know families are struggling with utility bills, and now we have an economic analysis putting a price on doing nothing," Rep. Rader concluded. "Ohio families should not be the venture capitalists for Silicon Valley's expansion. We don't get a share of their profits, and we shouldn't be handed their bills. The Statehouse needs to act before those bills come due."

The full report, Data Center Policy in Ohio: A Cost-Benefit Analysis, was released by Scioto Analysis on October 5, 2026. Its projections are modeled estimates subject to uncertainty.