Columbus projected to become Great Lakes’ second-largest data center hub, raising energy and tax questions

Columbus’ data center footprint is accelerating

Central Ohio is on track to become the second-largest data center hub in the Great Lakes region, ranking behind Chicago and ahead of New York City, based on a regional inventory and pipeline assessment of data center development through 2030. The projection reflects a sharp expansion in Ohio’s number of operational facilities and those planned for construction over the remainder of the decade.

Across eight Great Lakes states, data centers represent a substantial and growing share of U.S. digital infrastructure. The region counted 525 data centers as of 2024, with 224 additional sites planned by 2030. Ohio already hosts more than 100 operational data centers, with 77 more slated to be added by 2030—growth concentrated in the Columbus metro area and nearby counties.

Energy demand becomes the central constraint

One of the report’s core findings is that power demand is rising faster than many grids can accommodate. In Ohio, data centers are expected to more than double their share of statewide electricity consumption in the next four years—from 5.3% to 10.9%—as larger “hyperscale” facilities come online and operate around the clock.

The expansion is being driven by a shift toward data centers designed for high-intensity computing, including training and operating artificial intelligence systems. Newer hyperscale centers typically draw significantly more electricity than older, smaller facilities. In practical terms, individual campuses can require utility-scale power, triggering the need for new substations, transmission upgrades, and, in some cases, dedicated generation.

• Great Lakes region total (as of 2024): 525 data centers
• Great Lakes region planned by 2030: 224 additional data centers
• Ohio operational: more than 100 data centers
• Ohio planned by 2030: 77 additional data centers

Economic gains: construction jobs and local revenue, but fewer permanent roles

Data centers can generate short-term employment during construction and contribute to tax bases once operating. However, the long-term workforce footprint is typically limited because facilities are highly automated and not labor-intensive compared with similarly sized industrial uses.

In Ohio, the sector has been estimated to have created about 22,300 short-term jobs as of 2024, alongside roughly 4,500 permanent jobs. Fiscal impacts were calculated at approximately $128 million in local tax revenue and $123 million in state tax revenue tied to ongoing data center operations.

Large-scale data centers operate continuously and require substantial, predictable electricity supply; their labor needs are modest once construction is complete.

Policy issues: incentives, grid costs, and transparency

The rapid buildout is amplifying debates over who pays for grid expansion, how communities evaluate incentive packages, and what disclosure is needed about long-term resource use. Local governments often use tax abatements or exemptions to attract large facilities, which can reduce the public return from property taxes—the revenue stream frequently cited as the most durable local benefit.

At the same time, as power systems respond to rising industrial load, policymakers face pressure to align economic development with infrastructure realities. The Columbus area’s climb in the Great Lakes data center rankings underscores both the scale of investment flowing into central Ohio and the need for clear, enforceable frameworks governing energy planning and fiscal tradeoffs.