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And from the Ohio education Association, representing 120,000 educators who are united in their mission to create the excellent public schools every child deserves.

More at OHEA.org The ban on gender affirming care for minors goes to the Ohio Supreme Court.

And some communities that wanted to draw in data centers now want to delete future development.

The defense for data centers this week in the state of Ohio.

Just.

Welcome to the state of Ohio.

I'm Karen Kasler.

The constitutionality of a 2024 state law banning gender affirming medications and non-surgical treatments for minors will be decided by the Ohio Supreme Court.

House Bill 68 also bans transgender athletes from competing in girls sports, but that is not part of the lawsuit argued before the court on Tuesday.

In the state's argument, Ohio Solicitor General Matura for Darren said children do not have a constitutional right to gender affirming care and parents don't have the right to overrule state law related to it.

And she said when it comes to determining constitutional rights, lawmakers who can be removed by voters should be the regulators rather than experts in current research, which can change over time.

what is health care in Ohio, as defined by the General Assembly?

And it certainly touches on a health adjacent, health adjacent procedure.

Well, what if the General Assembly says having your tonsils out is not health care?

What do we do about it?

I mean, does it?

We had it.

How's that handled?

Two answers, Your Honor.

One direct and one the consequences.

I mean, even if theoretically the General Assembly were to make a bad decision, like getting rid of tonsillectomy or getting rid of, getting rid of cold medication, there's a democratic process for that.

And even as I say, yes, I'm sort of edging myself away from the podium to go vote them out immediately.

Well, with gerrymandered districts, I mean, they never follow our orders on how they drew the districts.

Can we really be confident of that?

Your honor, the number process Ohioans have shown that they can speak through their elected representatives or amend the Constitution.

We've seen that happen time and again, amend the Constitution to preserve those rights that they view fundamental as, the decision pointed out, the most fundamental right we have is a right to the democratic process.

Jordan Boxx represents the two transgender 12 year olds and their families who sued.

She argued that parents do have rights and a law can limit them if it's narrowly tailored to meet a compelling state interest.

And she said House Bill 68 doesn't do that.

She also said outlawing gender affirming care, which is standard treatment for gender dysphoria, violates the health Care Freedom Amendment that voters approved in 2011. should not be able to just define a treatment as wrongdoing.

If you do.

Again, that guts the TFA because it takes what was the clear will of Ohio voters to make their own decisions about whether they can access health care, and it removes it and puts it in the court of the General Assembly, which is exactly what the CFA was designed not to do.

I also think if you look at the text of the wrongdoing provision and this is in the 10th district's opinion, you know, especially when understood against the backdrop of that entire phrase, you know, law is calculated to deter fraud or punish wrongdoing in the health care industry.

The intent there was, you know, to punish particular instances of misconduct.

And no one is suggesting that the CFA doesn't, you know, that would in any way interfere with medical malpractice laws, laws about fraud in the medical sphere or any of those types of regulations.

The Cfas text applies to bans on treatments, and that is what we have here, not a regulation, the regulations that the state referenced for opioids or heroin, those are all permissible under the cfAa.

It is a categorical ban on care.

That is a problem.

House Bill 68 went into effect in 2024 after Republican lawmakers overrode governor Mike DeWine veto.

An appeals court rejected the trial court's ruling upholding the law, which is in effect during litigation.

Lawmakers wrapped up work on the $1.9 billion capital budget before a break.

That will likely bring them back after the May primary.

And in the House, Republicans approved a bill to require patients receive information from doctors about abortion 24 hours before the procedure, even though an existing waiting period law is on hold and a court fight, and all but one Republican voted for a bill that would require performances that are deemed obscene to be confined to adult venues like nightclubs and bars.

Critics said this is an attempt to ban drag shows, but Republicans say it will not.

A huge pair of projects were announced by the federal government in southern Ohio last Friday, a $33 billion, 9.2GW natural gas plant, alongside a $30 billion, ten gigawatt data center that it will fuel.

It is potentially the largest data center on Earth.

The facilities will go up on revitalized U.S.

Department of Energy land in Python, where the Portsmouth Gaseous Diffusion Plant sat.

SB energy, a subsidiary of Tokyo based SoftBank Group, is leading the project and will also invest $4.2 billion in new transmission lines across southern Ohio with American Electric Power, Ohio data centers have generated a lot of interest and a lot of heat in the last few years.

Ohio has the fifth highest number of data centers in the US, with more than 200 data centers were created as high tech, clean development for a while.

But around the country, communities and residents are pulling up that welcome mat.

I talked about that with Dan Diorio, vice president of state policy for the Data Center Coalition.

And I started by asking him about the significance of that huge project in Python.

first of all, talk about this announcement from Python in southern Ohio.

What is the significance of this data center project that was announced last week?

Sure.

Well, I think what it represents, of course, is Ohio's continued prominence.

As far as a data center market.

Ohio is a very strong and continuously growing market.

And what that means for the state is continued economic development and continued economic investment.

It means jobs.

It means good paying jobs.

It means contributions to Ohio's GDP, and it means significant state and local tax revenue being generated from this.

You know, data centers are the backbone of the 21st century economy.

It's everything we do every day.

The average household has 21 connected devices phones, laptops, watches, smart TVs, ring doorbells.

My oven is connected to WiFi.

All of that requires digital infrastructure.

And as Ohio continues to emerge as a tech hub of Midwest, data centers and digital infrastructure are playing an integral role in Ohio's economic growth.

As I understand it, this data center and piped in would be one of the largest in the world, if not the world's largest.

Does it need that natural gas plant?

It's also been announced to operate to get enough energy to operate.

Well, certainly I think what data centers are doing is trying to be good stewards of the grid, and I think that means pursuing solutions that will enable them, to both bring their own generation.

You know, that will help supply the facility, but then also be, a partner on the grid.

With that, with that facility and with, that capability.

And so I think it's, look, it's how the data center industry is looking at, you know, helping to alleviate the short term constraints on the grid, address concerns about ratepayer protections and cost allocations.

And ensure that they're going to be able to protect ratepayers.

And so I think it's one of the options that many in the industry are looking at.

This isn't a monolithic industry by, by any means.

So each company is going to have different capabilities to, to do this.

But it, it's it's one of the innovative partnerships that the industry is actively pursuing.

Ohio is, if not the leading place for data centers, one of the top places for data centers to cite.

I see numbers around 200 data centers now.

Do we have any idea how many data centers that there are in Ohio right now, and how many are likely to come online in the next year or so?

Sure.

Why?

I think that number is, is, you know, probably accurate as far as, you know, how you count data centers.

There are various, you know, sources out there that count data centers.

But, it depends sort of how you look at it.

You know, as far as data centers coming in the future, obviously, one of the things that the industry is doing is, is ensuring that they calibrate accurately to the demand out there.

We are in a moment of skyrocketing demand for digital infrastructure.

Again, it's consumers and businesses demanding access to these services.

Data centers are building out to accommodate that demand to meet that demand.

And all indications are that we are behind.

But what the industry does is constantly recalibrate to that demand, ensuring that it's utilizing innovations and technology to meet that demand more efficiently and ensure that it's building out appropriately and right sizes its infrastructure investments just as much as those on the energy side, the utility side, or right sizing their investments, to ensure that they can meet growth.

We don't want to overbuild.

We don't want to under build as well.

So the industry is always evaluating that.

And ensuring that it builds out appropriately.

Why is Ohio such a data center magnet?

I mean, is it because the land is available?

Is it because the tax climate has been such?

Republicans keep talking about cutting income taxes, making Ohio more business friendly when it comes to taxes.

But you also have some executives who are saying we don't need the tax incentives to build in certain areas, like Ohio.

So why is Ohio where they're being built?

Well, there's a variety of reasons.

I think you just highlighted many of them.

Of course, a good tax and regulatory climate, not just sales tax exemption program, which is Ohio is one of 37 states that have it.

It's an important part of maintaining Ohio's competitiveness for data center development.

And what that sales tax exemption does is enable continuous reinvestment in the facilities.

Just like long standing sales tax exemptions for manufacturing equipment, you're able to constantly reinvest.

But Ohio has several other things as well.

Of course, it has, available energy and available power in the world to be able to build the power, build the energy infrastructure, to service economic growth.

It has a ready workforce on the skilled trade side, but also developing those pipelines for data center technicians, pipelines that don't require a four year degree.

You know, data centers rely on electricians and plumbers and pipefitters Hvac technicians to both build their facilities, but constantly maintain them, when they're up and operational.

So having that workforce, is key.

As you mentioned, available land, and but overall, I think what Ohio has going for it, is time to market.

As I mentioned, we are trying to build out to meet the demand, the exponential demand curve that we're on.

And time to market is key to be able to meet that demand.

And so Ohio has several different factors going for it.

It has positioned itself really as a strong and competitive data center market for the country.

I want to ask you about a couple of those things.

But first, let's get to the whole idea of the backlash that data centers have gotten in the last couple of years.

Some communities have put moratoriums in place to ban future data center developments.

There's a group of rural Ohioans who are circulating a petition to try to put a constitutional amendment to ban data centers that had that use more than 25MW, on the ballot in Ohio.

One concern cited by these groups is environmental impact data centers.

They can use between 1 million and 5 million gallons of water a day.

How does the industry deal with that and the concerns people have about that?

Well, that 1,000,005 million gallons a day, I don't think is accurate.

Data centers are amongst the most efficient water users within the economy.

Data centers use less water, than manufacturing.

Data centers use less water than food and beverage production data centers use less water than water than what's lost to water leaks in municipal water systems.

In an annual basis.

We know in Virginia, which is the largest market in the world, 83% of data centers use as much, if not less, water than a large commercial office building.

Data centers have been deploying for years, proven technology that has dramatically reduced water footprint.

Closed loop technology?

Where you have a continuous recycling of the water through the system there.

And so you don't have a daily consumption of water for cooling.

You also have directed chip cooling, which is far more water and energy efficient liquid immersion cooling.

These aren't new technologies.

They're proven technologies that have already been deployed and are already being deployed in Ohio data centers.

It's that 1 million to 5 million gallons a day.

I don't think that's accurate, but what I think is important to remember is contextual.

Is is how you put this in the context to, to understand it.

And one of the things that folks, you know, when a data center is permitted, and especially a water permit, that data centers planning for the worst of the worst case scenario, where, you know, it's 115 degrees and you may need more water than normal or cool the data center because it's just so hot.

And so in those water permits is planning for that worst case scenario.

But that daily, the daily consumption is, is far, far, far less than that.

And it hardly ever approaches that number.

So I bet that's where that 1 million to 5 million gallons a day is coming, because we don't see those numbers, because proven technologies are already being deployed to reduce the water footprint.

And so we'll continue to be a good steward of water resources, and most importantly, will be, a responsible partner in the communities where we develop.

But we'll also be a responsive partner.

You're seeing the data center industry conduct robust stakeholder engagement.

In the communities where it's seeking to locate.

But what's key is certainty and predictability.

And I think what happens is, is when communities decide to go forward with the moratorium, it effectively sends a very clear message that that is not going to be a protectable place for data center development.

And so they will ultimately close themselves off to development in the future.

And I think looking at a statewide moratorium, puts Ohio at a very competitive disadvantage.

What it would do is send, a one size fits all policy.

And so for communities that may view data center development, as a significant, you know, economic benefit to their community are now being closed off because of a statewide moratorium.

And so, I think as we see data centers continuously move out of the central Ohio area into other parts of the state that are really looking for economic development, it would be important that the state not close off everywhere, to that development opportunity.

What about wastewater and runoff, the water that comes out of data centers that is released?

You know, there's data centers are permitted just like any other facility that would have those types of runoffs, or discharges.

So there's no skirting the rules.

The rules are in place to govern that, data centers work with the infrastructure providers, in those communities on those.

But data centers have to follow the rules just like any other industrial development would.

And there's nothing in those discharges that is unusual or anything like that.

And in fact, data centers are often using recycled water or reclaimed wastewater for cooling in their facilities as well.

So looking at the infrastructure opportunities where they're not doing, you know, fresh water or potable water.

And so, you know, data centers are continuing to be, you know, good environmental stewards, but also ensuring, again, they're following all the rules that everyone else has to follow.

One of the other things people have been hitting on data centers for is high electricity bills.

So you're seeing some consumers in areas like central Ohio who are saying that their electric bills are going up.

They're blaming the data centers for that.

Data centers are using about 5% of the country's energy supply, but it could go to 12% by 2050.

And demand in central Ohio was expected to double just in the next couple of years.

So what do you tell consumers who are worried about their electric bills being driven sky high because of data center development?

Well, quite frankly, there's no evidence right now that data centers are the leading cause, of higher electricity prices.

We know from Lawrence Berkeley National Labs and others that the leading cause of high prices right now is just needed infrastructure upgrades, things like poles and wires and transformers.

There's supply chain concerns with that.

There's inflation with that.

There's labor costs with that.

And so, that study said emphatically that data centers are not the cause of high prices right now.

And in fact, areas of the country with higher load growth actually saw lower prices overall.

And that's because having higher loads on the system allows those utilities to spread those fixed costs out over those higher users.

And I think you have to look no further than Indiana.

Indiana has a successful, large, low tariff in place.

And what Indiana, Michigan power announced just a few weeks ago is that they're lowering rates because of data center revenue coming in.

And so, I think it's important for utilities and regulators in the industry to work together on policies, that will ensure ratepayer protection as an industry.

The data center, industry is fully committed to paying our full cost of service for electricity.

We depend on utilities and regulators to help us do that.

We get our bill.

We expect that it is our cost in full and that no costs are passed along to ratepayers.

But we are proactively engaging in these proceedings, helping to form contracts and policies that will ensure the costs are allocated appropriately and ratepayers are protected.

As well as pursuing those innovative partnerships I mentioned, in which we can help alleviate their short term constraints on the grid.

You know, ultimately, long term investment in the utility grid is how we sustain economic growth.

And data centers are a key part in sending the key signals and paying for that long term infrastructure investment.

But the data is clear.

Data centers are not causing high prices right now.

And in fact, having data centers on the system will actually help to lower rates for others.

Those forecasts indicating that demand is going to go up can drive up electricity costs.

And I'm wondering, do you think those forecasts saying that, you know, Central Ohio is going to have double the demand in just a couple of years?

Are they accurate or are they being used as potentially a scapegoat for data centers being the reason why electric bills are going up?

So high?

Well, I know there's a lot of just speculation on the forecast as well.

What I can tell you from the industry perspective is that we take forecasting very seriously.

One of the things that we've been engaging on very heavily is how do we give utilities and regulators the right tools to be able to evaluate the forecast?

I do think there's there's likely some inflated forecast in there.

And that's been very clear with with AP and some others in Ohio.

But what we have seen and what the industry is trying to do is ensure that the right type of processes are in place so that utilities can evaluate projects.

They can figure out which projects are real and which projects or not.

They can de-risk these projects in their forecasts over time.

When we get an accurate, forecast, we rightsize the investment.

And that ensures that costs are allocated correctly, that ensures that there's no stranded assets that other ratepayers are on the hook for.

So it's something that the industry is heavily, heavily engaged in because we recognize the strategic importance of investing in the grid wisely and getting those investments right.

And finally, one of the other criticisms that communities have had about data centers is they simply don't create enough permanent jobs to offset the tax credits that they're getting, but they do create temporary construction jobs.

But by definition, construction jobs are temporary.

They're not creating a lot of good paying jobs.

What do you tell people when you hear that criticism?

Well, data center jobs are good paying.

We have seen labor income actually start to outpace the number of jobs on a national level, which means that these are good paying jobs.

What I would say to those folks is to to go to a member of the building trades and tell them that their job is temporary.

And see what sort of reaction that they may get.

You know, what we have seen certainly is that, you know, construction jobs are turning into longer term construction jobs as crews move from site to site, or they go from building to building on campus.

But what's key is that data centers create strong business ecosystems around them.

For every one job in a data center, six jobs are supported.

Elsewhere in the economy.

Data centers depend on local electricians, local plumbers, local Hvac technicians to be working on that facility constantly, to maintain it and also upgrade it.

You know, it has to run at an optimal level at all times.

That means the data centers are contracting with local small businesses for those services.

And sometimes that's not encapsulated in the job count that you see.

Data centers are supporting manufacturing.

You know, we need to, have manufacturers build the components in that go into a data center.

You know, chilling equipment.

Energy management equipment as well.

You know, companies like Burdett in Ohio have rapidly expanded by supporting the data center industry, steel fabrication.

We need steel for the data center industry.

And so the steel fabrication industry is heavily building out to support that.

And you're seeing throughout the state of Ohio, other manufacturing facilities, coming into Ohio, or expanding in Ohio because of the need to serve the data center industry.

And so the record is clear, data centers create strong business ecosystems.

They are an engine of economic growth in their communities, and they give significant amounts of revenue back to local communities, but also the state.

So data centers will continue to be an essential part of the country's economic growth.

I have one more question.

There's a lot of concern about an AI bubble, that this is all happening to the point where it's going to pop up at some juncture.

What do you tell those who are concerned about that?

This is all just an AI bubble that's going to just collapse.

What I would say is data centers are not just AI.

There's a misperception that all of this is for AI, and it actually couldn't be further from the truth.

The vast majority of data centers being built today are to service cloud infrastructure.

95% of fortune 500 companies run on the cloud.

Cloud is the underpinning of everything we do every day.

It's all the devices we rely on.

It's electronic health care records and telehealth appointments, online classrooms, online purchases, banking and financial transactions.

911 geolocation services.

State and local governments, National defense.

It is the underpinning of the 21st century economy.

It's the backbone of the 21st century economy.

I is less than 10% of current compute.

It's an important growth driver and it has wide applications throughout the economy.

It has health care applications.

It has, energy implications, infrastructure implications.

It's not just ChatGPT, but it's important to remember that data centers are not just AI.

In that data centers are everything we do every day.

And that's why we're building the infrastructure.

But also just remember as well, again, that is representing leading data center owners and operators.

They're constantly recalibrating to demand.

They want to build their infrastructure out appropriately.

So they're constantly evaluating it to do that.

But again all indications are that we are on this very steep demand curve right now.

And so the industry is building out to meet that demand.

And all indications are that we're behind.

And finally this week, groundbreaking for one of the few monuments in the U.S.

honoring the work of women in securing the right to vote and the continuing efforts in equality.

The women's monument on the south Plaza of the state House will feature four granite columns, with the names of notable Ohio women etched on them, and bronze figures on three of those columns, with the fourth left open for future generations.

The monument is expected to be unveiled this fall.

Two thirds of the monuments, $2.5 million cost has been secured, including a $1 million anonymous donation to honor the late Joanne Davidson, the first and only woman to serv And that is it for this week for my colleagues at the Statehouse News Bureau of Ohio Public Media.

Thanks for watching.

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Support for the Statehouse News Bureau comes from the law offices of Porter, Wright, Morris and Arthur LLP.

Porter Wright is dedicated to bringing inspired legal outcomes to the Ohio business community.

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inspired every day.

And from the Ohio education Association, representing 120,000 educators who are united in their mission to create the excellent public schools every child deserves.

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