Data centers play a major role in today’s connected economy, supporting everything from internet use and cloud services to business operations and emerging technologies. As interest in data center development grows, many communities have questions about energy, water, noise, jobs, and local benefits. This overview is designed to provide a general introduction to what data centers are and how they can fit into a community.
What is a Data Center?
A data center is the physical infrastructure that powers the internet. Every search engine query, every navigation request, every video call, and every AI-assisted tool used in a hospital, business, or on your phone runs through a facility like this one. Data centers are a large part of the modern digital economy and support everyday life for millions of people.
Do Data Centers Affect Energy Supply and Costs for Residents?
Modern data centers are often built with behind-the-meter power plants, meaning they generate their own electricity on site rather than drawing it from the public grid. This approach can actually provide excess power back to the grid, making it more resilient and reducing the impact on electric prices for existing customers.
Under the White House Ratepayer Protection Pledge, signed in March 2026, participating companies are required to pay for 100% of the power they use and any new infrastructure costs directly driven by their operations, meaning household and local business electric bills are explicitly protected.
Are There Air Pollution Concerns?
Backup generators, used only when primary power is interrupted, are increasingly required to run on ultra-low sulfur diesel or renewable diesel fuel. Ultra-low sulfur diesel has a maximum sulfur concentration of 15 parts per million, the result of EPA requirements that decreased sulfur levels in diesel fuel by more than 99 percent.
Do Data Centers Strain the Local Water Supply?
Modern data centers increasingly use closed-loop cooling systems that recirculate water rather than constantly consuming a fresh supply. In a closed-loop design, the cooling liquid is filled once and then circulates continuously between servers and heat exchangers, reducing water draw from the community.
Toledo alone has 70 million gallons per day in excess water capacity. Northwest Ohio has access to an abundant supply of fresh water, along with municipal and wastewater systems with excess capacity to serve data center requirements without impacting service or costs for residents.
What About Noise?
Modern data center designs include buffers and barriers specifically engineered to minimize noise levels, keeping them well under local zoning ordinances. Noise is not a significant concern with facilities built to current standards.
What Kind of Jobs Do Data Centers Bring?
The construction phase alone at a large-scale data center typically employs more than 1,000 workers at peak, with build timelines that can span a decade or more. There is also a longer time frame to consider. With new developments, Allen County is branded as a tech-forward community, which draws tech companies to the region and helps retain talent from area colleges and universities rather than watching this talent leave. The first major investment is often what makes the second one possible.
How Do Data Centers Benefit a Community Financially?
Data centers generate substantial property and personal property tax revenue for local communities, often exceeding what typical industrial or warehouse facilities produce on a per-acre basis, which translates directly into more funding for schools, roads, police, and fire services. According to the Ohio Chamber of Commerce Research Foundation, Ohio’s data center industry contributed $11.8 billion to the state’s GDP in 2024 and generated a net fiscal gain of $2.7 billion between 2017 and 2024. The industry also supported approximately 95,000 jobs statewide that same year.
How Will This Affect Farmland Supply?
Ten data centers across a region like Northwest Ohio would occupy just two-tenths of 1% of the area’s farmland. Agriculture is not displaced by data center development. Instead, the two industries can coexist, with data centers strengthening the schools and infrastructure that farming families and rural communities depend on.
Why Are Rural and Midsize Communities Attractive for Data Centers?
Data centers require flat land near power infrastructure and fiber connectivity. Midsize communities in the Midwest often sit along major fiber corridors, have access to abundant natural gas and water resources, and offer a skilled workforce pipeline through regional colleges and universities. These factors make rural and midsize communities increasingly competitive destinations for this type of investment.
Where Can I Learn More?
The Allen Economic Development Group maintains resources on data center development at www.aedg.org/data-center-updates.