COLUMBUS, Ohio (AVC News) — Ohio lawmakers have introduced legislation that would dramatically increase state oversight of data centers, requiring local voter approval, stricter environmental standards and new restrictions on tax incentives for future projects.
House Bill 983, sponsored by Reps. Ty Mathews Gross and Monica Robb Blasdel Teska, is titled the Data Center Accountability and Citizen Protection Act. The bill was introduced during the 2025-2026 General Assembly and has been referred for legislative consideration.
Among its most significant provisions, the bill would require any proposed new or expanded data center to receive approval from voters before construction could move forward. Residents living within five miles of a proposed project would vote on whether to allow the development before zoning approvals, permits or development agreements could be finalized. Any approvals granted without a public vote would be considered void.
The legislation also would require data centers and any associated power plants to use closed-loop cooling systems and meet new wastewater discharge and air emissions standards established by the Ohio Environmental Protection Agency. The EPA would be prohibited from issuing permits to facilities that fail to meet those standards.
Developers would be required to disclose all chemicals, cooling agents and wastewater treatment substances used at a facility. The information, along with wastewater testing results, would be made publicly available on state and local government websites. Independent third-party testing would also be required before wastewater is discharged.
If a data center reduces water pressure or water supply within five miles of its operations, the owner would be responsible for paying for infrastructure improvements, reimbursing local governments and paying a $5,000-per-day fine until the problem is corrected. The bill creates a presumption that a data center is responsible if local water pressure falls below baseline measurements collected before construction.
The proposal also establishes escalating penalties for environmental violations. Operators exceeding wastewater or air emissions limits would face fines starting at $10,000 per day, increasing to $25,000 per day if violations continue. The Ohio EPA could revoke operating permits if compliance is not achieved within 30 days.
In addition, the bill would require future voter-approved data centers to generate all of their electricity on-site or through off-grid power generation. It also would prohibit Ohio ratepayers from bearing any costs associated with data center power generation or related grid infrastructure.
The legislation would eliminate local tax incentives for future data centers and require all development and supply agreements related to those projects to be public records. Existing confidentiality protections for those agreements would no longer apply.
If approved by the General Assembly and signed into law, the measure would take effect immediately under an emergency clause. Supporters say the bill is intended to preserve the rights of Ohio residents and local communities to participate in decisions involving rapidly expanding data center projects and their supporting infrastructure.
As of now, House Bill 983 has been introduced in the Ohio House but has not yet been referred for committee consideration.
Last Updated on August 6, 2026 by AVC News
