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It’s going to take a lot to be the ‘Silicon Heartland’

Data centers have generated plenty of buzz in Ohio, as some economic development officials have touted them as an integral part of our state’s economic future. That may be true, but the Ohio Chamber of Commerce has some words of caution as it releases a new report through its research foundation on the economic impact of those centers.

SRC EvalMetrics LLC prepared the report, which took a look at Ohio’s spot in the upper echelon of North American data center markets, but also noted a few challenges.

For 2024, the data center industry here “supported more than 95,000 jobs across construction, operations and supply chains,” according to the chamber. The organization says the sector contributed $11.8 billion to the state GDP and $6.9 billion in labor income.

Looking forward, the chamber estimates the data center industry could support 132,500 jobs and contribute nearly $20.2 billion annually to the state GDP.

But there are big ifs associated with that hopeful outlook.

“Ohio’s momentum is undeniable,” said Ohio Chamber President and CEO Steve Stivers. “Data centers are fueling transformative growth across our state. But continued success depends on smart policy alignment, targeted infrastructure investment, and building community trust. If we stay proactive, Ohio will remain a global tech and infrastructure powerhouse.”

Long-term water demand and carbon intensity could be a problem not only for the environment, but could erode “the industry’s social license,” as the chamber put it. Any incentives offered should therefore be linked to efficiency standards and requiring Community Benefit Agreements

That’s just one point the chamber makes in its report. The bottom line is that tax incentives got us this far; but now it’s time to show strengths such as “grid reliability, speed-to-market, workforce readiness and community trust” to do what’s right for Ohioans and keep up with competing states.

Buckeye State officials keep saying we are becoming the country’s “Silicon Heartland.” Maybe. But it’s going to take heart AND brains — and a healthy dose of realism — for us to earn that label.

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