Acton and Ramaswamy: Their Views On Data Centers And Electricity

The next Ohio election may have some of the most significant implications from an Ohio governor election in recent memory. The next Ohio Governor will navigate potential land use, farm land preservation, and the infrastructure that supports Ohio's citizens. As large companies such as Anduril and Eli Lilly, along with data centers, start to expand in the state, the next govenor will have a large role in what the future of Ohio looks like.

Both candidates say companies should cover energy costs, but they differ on restrictions and expansion

Ohio’s growing data center industry is becoming a major issue in the race for governor, with Democratic nominee Amy Acton and Republican nominee Vivek Ramaswamy offering noticeably different approaches to future development.

Both candidates agree on one central point. Ohio families and businesses should not be forced to pay higher utility bills because a large data center moves into the state. Beyond that agreement, Acton is proposing detailed conditions that companies would have to meet before building, while Ramaswamy is promoting continued data center growth supported by a major expansion of Ohio’s energy supply.

Acton announced July 27 that she supports what her campaign calls a conditional moratorium on new data centers. This would not amount to a permanent statewide ban. Instead, companies that fail to meet her proposed requirements would not be allowed to build new facilities in Ohio. It should be noted that neither candidate supports banning data centers in Ohio.

Under Acton’s proposal, data centers would be required to cover 100 percent of the costs associated with their electricity, natural gas, water, environmental protections and other public services. Her campaign says companies should invest in their own energy generation and demonstrate that a proposed facility would not increase electricity prices or threaten the reliability of the regional power grid.

Acton is also calling for data centers to be built, maintained and operated by Ohio union workers. Projects would have to include community benefit agreements, follow state environmental standards and provide greater public transparency. Her plan would seek to end the use of nondisclosure agreements that can prevent residents from learning which company is behind a proposed project or what promises have been made during negotiations.

Acton’s campaign also wants new data centers directed toward brownfields, abandoned industrial properties and communities that have lost major employers. Her plan discourages placing the facilities on productive farmland or in the middle of residential communities. It also states that Ohio should not weaken its air quality or groundwater protections to accommodate the industry. “Ohio is open for business, but we are not up for sale,” Acton said when announcing the conditional moratorium. Her running mate, David Pepper, told the Ohio Statehouse News Bureau that no resident should pay more because a data center entered the community. Pepper said the ideal project would bring its own source of energy and help reduce costs rather than increase them.

Ramaswamy has taken a more welcoming position toward the industry. He has described the arrival of artificial intelligence data centers as a positive development and has said he wants industries of the future to locate in Ohio. At the same time, he has acknowledged that their electricity demand will place unprecedented pressure on the state’s power system.

Ramaswamy has said large technology companies, sometimes referred to as hyperscalers, should pay for their own energy use rather than passing those costs to residential customers. His broader answer to rising demand is to produce considerably more electricity in Ohio.

His campaign plan calls for expanding natural gas production, developing new energy technologies and speeding up approval of energy projects by removing regulations and shortening the permitting process. Ramaswamy has also expressed support for coal and nuclear power, including the possible addition of smaller nuclear reactors at existing or former power plant sites.

Ramaswamy argues that Ohio cannot attract data centers, advanced manufacturing and other large employers without building more dependable power generation. He has blamed part of the state’s energy problem on the retirement of older power plants and delays in approving replacements.

While Acton’s plan would make approval dependent on a detailed list of labor, environmental, utility and community requirements, Ramaswamy’s approach focuses more heavily on increasing energy production and accelerating construction. As of August 4, his publicly posted statewide plan does not provide the same level of detail on data center water use, farmland development, community agreements or nondisclosure.

Acton says development should continue only when companies meet strict conditions and deliver clear benefits to the surrounding community. Ramaswamy considers the industry an economic opportunity and wants Ohio to prepare for it by producing more energy while requiring large users to pay their own power costs.

The next governor will have considerable influence over the issue through appointments to utility, energy and economic development boards. Those organizations help determine how facilities receive electricity, what infrastructure costs can be passed to customers and which companies qualify for state incentives.

For Ohio voters, the choice is between two different methods of managing the same rapidly growing industry. Acton is proposing restrictions before additional construction is allowed. Ramaswamy is proposing expanded energy production and faster development, with the expectation that data centers will pay for the power they consume.

.