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A tiny Ohio town just found a way to make data centers pay
The supplied article text is cut off before its full account, but it describes Perry, Ohio, approving a measure that would make data centres receiving local tax breaks or subsidies secure a bond backing their promised jobs or tax revenue. The result could give the small village a way to protect itself if a company’s promises go unfulfilled, and may offer other communities a model for negotiating with data centre developers.
The measure, Issue 16, passed with 87 per cent support in a village of about 1,400 people, after months of local campaigning and heated public meetings. The article says more than 40 data centre-related measures went before voters nationally and all but one lost; many sought bans or restrictions, while Perry’s approach focused on guaranteeing commitments. Its broader context is growing public opposition to data centre expansion and concern about the terms offered by the AI industry.
In short
- Perry, Ohio, passed a measure requiring bonds for subsidised data centres.
- Issue 16 won 87 per cent support in the village.
- The policy could help towns secure developers’ promises.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Requiring a bond can help ensure that data centre developers honour promises about jobs or tax revenue when they receive public subsidies. It gives a small community some protection against unmet commitments while still allowing projects to proceed, and may help residents negotiate clearer terms with well-resourced companies.
The case against
A bond requirement could make it harder or more costly for data centre projects to go ahead, including projects that might bring investment, jobs or tax revenue. If the bond is difficult to price or its conditions are uncertain, developers may avoid the village or pass the added cost on, so the policy could deter beneficial development without guaranteeing the community a better deal.