In-Depth Report

The Oregon, Ohio Data Center Development

A Comprehensive Analysis

Last Updated: February 23, 2026

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Introduction

This report provides a comprehensive overview of the proposed data center development in Oregon, Ohio, a project that has ignited significant debate and activity within the community and across the state. It synthesizes information from local and state news media, official government sources, industry publications, and community discussions to present a multi-faceted analysis covering the project's key players, economic implications, environmental and infrastructure concerns, governance and legal challenges, and the broader industry context. The report also explores potential solutions and best practices that could inform the project's path forward.

1. Project & Players

The central project is a proposed multi-billion dollar data center campus in Oregon, Ohio, led by developer Will Turner of Capacity Infrastructure LLC and Upterra Group. The development is planned for a 168 to 176-acre site of city-owned land near Corduroy and Wynn roads. The project's scale is substantial, with plans to utilize 450 megawatts of on-site natural gas-powered generators and draw up to 1,000 megawatts from the electrical grid.

Key Individuals and Organizations

Several key individuals and entities have played significant roles in the project's progression and the public discourse surrounding it.

Will Turner (Capacity Infrastructure LLC / Upterra Group)

The primary developer leading the project proposal. He has actively engaged with the city council to secure necessary extensions and approvals, and confirmed the project is not dead following the disputed February 9 vote.

Oregon City Council

The central governing body responsible for approving or denying the project's various stages. The council's votes have been a focal point of public attention and controversy.

Steve Hornyak (Council Member, pro-extension)

Voted in favor of the extension and publicly challenged the initial determination that the vote had failed, citing the city charter and requesting an Attorney General opinion.

Beth Ackerman (Council Member, voted against extension)

Voted against the extension, citing concerns about the developer changing the terms of the project — specifically changes to the electrical load study — but confirmed the project is not dead after speaking directly with Turner.

Paul Gibbs (Council Member)

Voted in favor of the extension; reportedly received a call from developer Will Turner after the disputed vote.

Dave Andrus (Council Member)

Absent from the February 9 vote. His appointment to the council is being challenged in a lawsuit alleging violations of the Ohio Open Meetings Act.

Chynna Fifer (Acting Law Director)

Issued the legal opinion clarifying that the 3-2 vote constituted a valid majority, and submitted a memorandum to the Ohio Attorney General's office seeking a formal ruling.

Paul Roman (Acting City Administrator)

Issued a statement clarifying that the extension vote was not an approval of the project and that multiple additional ordinances — including an economic development agreement and a CRA agreement — must still be passed before any land purchase can proceed.

Mayor Steven Salander

Has expressed the need for caution and thorough evaluation of the project's impacts while acknowledging its potential economic benefits.

Responsible Government 4 Oregon, LLC

A nonprofit group that filed a lawsuit against the city of Oregon and several council members, alleging violations of the Ohio Open Meetings Act.

Project Status

As of February 21, 2026, the project's future has been the subject of intense procedural complexity. The developer requested a six-month extension to the due-diligence period, moving the deadline from March 31 to September 30, 2026, citing the need for further studies and permitting for electrical load, natural gas pipelines, and emissions controls.

A vote by the Oregon City Council on February 9, 2026, resulted in a 3-2 decision in favor of the extension, with one council member abstaining and another absent. Initial confusion led to the belief that the extension had been denied, as a four-vote majority was thought to be required. However, a subsequent legal opinion from Acting Law Director Chynna Fifer, later supported by the Ohio Attorney General's office, clarified that the 3-2 vote constituted a valid majority of the members present and voting, thus granting the extension and keeping the project alive.

"What it really comes down to is whether Oregon's charter and ordinances establish what a majority is...this abstention was based on a conflict of interest, and Roberts Rules would state that they can't force someone not to vote...the rules really state then is that that vote is to be treated as not a vote." — Chynna Fifer, Acting Law Director

Acting City Administrator Paul Roman was careful to emphasize that the extension vote did not constitute project approval, stating that an economic development agreement, a Community Reinvestment Area (CRA) agreement, and a potential street vacation ordinance must all be separately approved by the council before any land purchase can proceed. This clarification is significant, as it underscores that the community still has multiple future decision points at which to shape or reject the project.

2. Economic Impact

The potential economic benefits of the data center project are a primary driver for its proponents. The development promises a significant infusion of capital into the local economy, with estimates suggesting a $2 billion investment that could generate substantial tax revenue for the city of Oregon and its school district.

Job Creation and Tax Revenue

The project is expected to create a number of jobs, though the exact figures and types of employment remain a subject of discussion. Data centers are typically highly automated facilities and are not large-scale employers once operational; the construction phase would generate a significant number of temporary jobs, while long-term employment would be concentrated in highly skilled technical and engineering roles. The most significant economic impact is anticipated to come from property and income tax revenue, which could be used to fund public services, infrastructure improvements, and educational programs for the Oregon City School District.

However, the specifics of any tax abatement or incentive packages offered to the developer have not been fully disclosed, leading to calls for greater transparency. Community members have noted that without an enforceable economic development agreement, the city has no binding commitments from the developer on tax sharing, job numbers, or other benefits.

Community Benefit Agreement

The concept of a Community Benefit Agreement (CBA) has been raised as a potential mechanism to ensure the project delivers tangible benefits to the local community beyond tax revenue. A CBA is a legally binding contract between a developer and community representatives that can include commitments to local hiring, job training programs, investments in local infrastructure, and contributions to community funds.

As Acting City Administrator Paul Roman confirmed, the economic development agreement — which would function similarly to a CBA — must still be approved by the council, meaning the community retains significant leverage to negotiate favorable terms.

The $500,000 School Training Offer: What the Record Shows

On March 5, 2026, Superintendent Dr. Jim Fritz sent a community letter announcing that Capacity LLC had "expressed strong interest" in providing a $500,000 restricted donation to Clay High School to fund an "Electrical, Plumbing, and Mechanical Data Center Trades instructional program." The offer has generated significant community discussion, with some residents characterizing it as an unconditional investment in local students regardless of the data center's fate. The written record does not support that characterization.

Key Language from the District's Own Letter

"Should the data center project receive final approval, this donation would position Clay High School as one of the regional leaders in data center trades education and strengthen the pipeline of skilled workers needed to support the industry's development in our area."

— Dr. Jim Fritz, Superintendent, Oregon City Schools, March 5, 2026

Several additional details from the letter and the broader public record are worth noting. First, the letter describes this as an "expressed strong interest" — it is not a signed, executed donation agreement. The district itself describes it as a "potential partnership" that is "moving toward finalization," language that is inconsistent with an unconditional commitment already in place. Second, the donation is described as "restricted," meaning the funds could only be used for this specific program and not for other school needs the district might prioritize. Third, a separate $500,000 donation for a nature park — described in Capacity LLC's February 27, 2026 Q&A letter — is explicitly "contingent upon property closing," providing context for how the developer structures its community benefit offers.

What Is Genuinely Positive

  • • Trades training in electrical, plumbing, and mechanical systems provides portable, marketable skills
  • • Clay High School already has a construction technology program — this would expand it
  • • $500,000 is a meaningful investment in career-technical education
  • • Skilled trades are in high demand across the region regardless of any single employer

Legitimate Questions Residents Should Ask

  • • Is the donation legally binding and unconditional, or contingent on the data center proceeding?
  • • Has a formal written agreement been signed and made public?
  • • Are there naming rights, publicity, or policy expectations attached?
  • • Does the district retain full control over curriculum and program design?
  • • What happens to the program if the data center is never built?

[Note] The full written terms of the donation have not been made publicly available as of March 8, 2026. The district's letter describes an "expressed interest" rather than a finalized agreement. Residents who want clarity on whether the money is truly unconditional should ask the school board to publish the complete written terms before any vote on the data center project.

3. Environmental & Infrastructure Concerns

Despite the potential economic benefits, the data center project has raised significant environmental and infrastructure concerns. These concerns primarily revolve around the facility's massive consumption of power and water, as well as the potential for noise pollution and long-term site liability.

Power Consumption and On-site Generation

The project's proposed energy consumption is a major point of contention. The plan to build 450 megawatts of on-site natural gas-powered generators and draw up to 1,000 megawatts from the electrical grid has raised alarms about the strain on the local power infrastructure and the environmental impact of fossil fuel-based on-site generation.

Critics argue that this level of energy consumption is unsustainable and could lead to increased energy costs for residents and other businesses in the region. The developer has indicated that the on-site generation is intended to provide a reliable power source for the facility, but this has not assuaged concerns about the project's carbon footprint. The change in the scope of the electrical load study — which Councilwoman Ackerman cited as a reason for her "no" vote — suggests the project's energy demands may have grown since initial discussions.

Second Natural Gas Plant: Competitive Power Ventures

Separate from the data center's own on-site generators, a second natural gas power plant is planned for Oregon. Competitive Power Ventures (CPV), based in Silver Spring, Maryland, is in the second stage of a PJM Reliability Resource Initiative process to build a new gas-fired generation facility north of Parkway Road between North Wynn and North Lallendorf roads — adjacent to the proposed data center site. The plant is expected to begin operating in 2031 and would add significant additional fossil fuel generation capacity to the area.

This development is independent of the data center project itself, but the proximity and timing raise questions about cumulative environmental and infrastructure impacts on the surrounding community. The Ohio Power Siting Board (OPSB) has jurisdiction over large power plant construction in Ohio.

Source: Press Publications (June 19, 2025); Ohio Gas Association (June 26, 2025); GEM Wiki (January 30, 2026)

Water Usage

Data centers require vast amounts of water for cooling, and the Oregon project is no exception. Concerns have been raised about the potential impact on the local water supply, particularly given that Oregon is located near Lake Erie and relies on municipal water infrastructure. The exact amount of water the facility would consume has not been publicly disclosed, leading to calls for more detailed information and a thorough assessment of the project's impact on the region's water resources.

Noise Pollution

The constant operation of cooling systems and backup generators at a large-scale data center can generate significant noise pollution. Residents living near the proposed site have expressed concerns about the potential for constant, disruptive noise that could negatively impact their quality of life. No detailed plan for mitigating noise pollution from the facility has yet been made public.

Decommissioning

Another concern raised by community members is the absence of a clear plan for decommissioning the data center at the end of its operational life. The long-term environmental and financial responsibility for dismantling the facility and remediating the site remains an open question, and advocates have called for this to be addressed in any final development agreement.

4. Governance & Legal Issues

The data center proposal has been fraught with governance and legal challenges, further complicating the public discourse and decision-making process.

Open Meetings Act Lawsuit

A significant legal challenge has been mounted by Responsible Government 4 Oregon, LLC, a nonprofit group that filed a lawsuit against the city of Oregon and several council members, alleging violations of the Ohio Open Meetings Act. The lawsuit contends that council members engaged in improper deliberations and decision-making outside of public meetings, undermining the transparency and accountability of the legislative process.

It is important to note that these are allegations that have not been adjudicated; the outcome of the lawsuit remains pending. The lawsuit was filed ahead of the February 9 council meeting, adding to the charged atmosphere surrounding the vote.

Council Vote Controversy: A Detailed Account

The February 9, 2026, city council vote on the developer's extension request became one of the most confusing and contested moments in this entire process. Understanding it requires separating four distinct questions: what was actually being voted on, what the numbers meant, why the initial interpretation was wrong, and what the outcome means for the project going forward.

What Was Actually Being Voted On

Ordinance 20-2026 was not a vote to approve the data center. It was a vote on whether to grant the developer a six-month extension—moving the due-diligence deadline from March 31, 2026, to September 30, 2026. During that extended period, the developer would continue studies and permitting work on electrical infrastructure, natural gas pipelines, and emissions controls. The vote was, in essence: "Should we give them more time to keep working on this, or should the March 31 deadline stand?"

The Vote Count and Initial Confusion

Of the seven council members, the vote broke down as follows:

3 YES

Drake, Pollauf, Hornyak

2 NO

Ackerman, Gibbs

1 Abstained

Walendzak (conflict of interest)

Member Dave Andrus was absent. Everyone in the room—council members, city staff, residents, and reporters—initially interpreted the result as a failure. The prevailing assumption was that a non-emergency ordinance required four affirmative votes out of seven council members. Under that reading, 3-2 was not enough. Local media reported the extension as dead.

The confusion was compounded by a procedural change that occurred just before the vote: the "emergency" designation had been stripped from the ordinance. Emergency ordinances carry their own voting thresholds, and removing that designation left some observers uncertain which rules applied.

The Legal Ruling That Changed the Outcome

In the days following the meeting, Acting Law Director Chynna Fifer conducted a detailed review of Oregon's city charter, applicable ordinances, and Ohio state law. She issued a six-page memorandum concluding that Ordinance 20-2026 had in fact passed. Her reasoning rested on a foundational principle of parliamentary procedure: an abstention due to a declared conflict of interest is not counted as a vote cast. Under Robert's Rules of Order, which Oregon follows, the relevant question is not "did a majority of all seven members vote yes?" but rather "did a majority of the members who were present and actually voting vote yes?"

With Walendzak's abstention excluded, five votes were cast. Three of those five were yes votes. Three out of five is a majority. Acting Law Director Fifer then wrote to the Ohio Attorney General's Office seeking an advisory opinion.

The AG's Exact Response (February 18, 2026):

"Because municipal law directors are not included on this list, we are unable to issue an advisory opinion on this matter. While we cannot provide legal advice, we can confirm that the prior opinions referenced in your memorandum — OAG 1998-007 and 1999-004 — have not been overruled or modified by subsequent opinions."

Important distinction: The AG did not endorse or validate the law director's ruling. The AG declined to issue any opinion because municipal law directors fall outside the statutory list of officials they advise (R.C. 109.12–109.14). The AG only confirmed that the two older opinions Fifer cited in her memo had not been overruled — nothing more. The conclusion that the ordinance passed rests entirely on Fifer's own legal analysis, not on an AG endorsement.

Councilman Hornyak noted that he received numerous constituent emails questioning the initial determination and submitted them to the clerk of courts for the official record.

What the Outcome Actually Means

Because the 3-2 vote constituted a valid majority of the members present and voting, the extension is legally in effect. The developer has until September 30, 2026, to complete its due-diligence work and meet the conditions of the purchase agreement.

However, Acting City Administrator Paul Roman was explicit that this vote was not an approval of the data center project itself. Before any land changes hands or the project proceeds, the council must still vote separately on:

  • • An Economic Development Agreement establishing the financial terms, community protections, and conditions of the deal
  • • A Community Reinvestment Area (CRA) agreement governing tax abatements and school revenue implications
  • • A possible street vacation ordinance to change the legal status of a public road within the project footprint

Each of these future votes represents a distinct decision point where the council can impose conditions, demand concessions, or reject the project outright. The February 9 vote extended the timeline for negotiation; it did not foreclose any of those options.

Council Member Appointment Challenge

The appointment of council member Dave Andrus has also become a subject of legal scrutiny within the broader Open Meetings Act lawsuit. Andrus's absence from the crucial February 9 vote has been a point of discussion and speculation within the community, though no causal connection between the two has been established in any official proceeding.

5. Regional Response: Community Moratoriums

The rapid pace of data center development across Northwest Ohio has prompted a wave of protective action by neighboring communities. As of March 2026, at least 18 Ohio communities statewide have enacted or considered moratoriums to pause data center development while they study the impacts and develop appropriate regulations. Oregon notably has not implemented a moratorium, instead proceeding with the Capacity LLC project.

Northwest Ohio Moratoriums

CommunityActionDate
Maumee12-month moratorium approvedFebruary 2, 2026
Monclova Township12-month moratorium approvedFebruary 18, 2026
Richfield Township12-month moratorium passedFebruary 17, 2026
Waterville6-month moratoriumDecember 2025
Waterville Township12-month moratoriumDecember 17, 2025
Spencer TownshipMoratorium under discussionFebruary 2026
ArchboldTask force formed; moratorium tabledFebruary 2026
Lucas County90-120 day pause proposedDecember 2025
ToledoFormal study requested (cannot pass moratorium without zoning framework)2025-2026
Woodville TownshipCannot pass moratorium without zoning framework; studying optionsFebruary 2026
Archbold VillageAll council members expressed opposition; no formal vote takenFebruary 2026
Lake Township (Lucas Co.)12-month moratorium enacted — triggered by suspicious social media post about potential data center at 0 Tracy RoadMarch 3, 2026
Monroe Township12-month moratorium enactedMarch 9, 2026

Sources: Toledo Blade, WTOL, 13ABC, Ohio Capital Journal (February–March 2026). Statewide count of 18+ communities from Ohio Capital Journal reporting.

These moratoriums reflect growing community concern about the pace and scale of data center development, with local officials seeking time to understand the infrastructure, environmental, and fiscal impacts before approving projects. The widespread nature of these actions across the region underscores the significance of the issues being debated in Oregon.

6. State Legislative Response

The data center debate has generated significant legislative activity at the state level, with both Republican and Democratic lawmakers introducing bills to address community concerns about costs, transparency, and local control.

House Bill 646: Data Center Study Commission

Introduced January 13, 2026, by Representatives Gary Click (R-Vickery) and Kellie Deeter (R-Norwalk), this bipartisan bill would establish a 13-member Ohio Data Center Study Commission. The commission would include appointees from the Speaker of the House, Senate President, Governor, and minority leaders of both chambers to study data center impacts and develop recommendations for communities.

Source: Ohio House of Representatives, Monclova Township documents

House Bill 706: Ratepayer Protection Standards

Introduced February 17, 2026, by Representatives David Thomas (R-Jefferson) and Tristan Rader (D-Lakewood), this bipartisan legislation establishes minimum statewide standards for electric service agreements with data center customers. Key provisions include:

  • Cost protection: Prohibits electric utilities from recovering data center infrastructure costs from other customer classes
  • Minimum commitments: Requires 12-year minimum contract commitments from data center customers
  • Financial assurance: Mandates financial guarantees before construction of dedicated facilities
  • Queue standards: Directs PUCO to establish standards for interconnection queue practices and load study deposits

The bill builds on consumer protections already implemented in AEP Ohio's service territory and would apply those safeguards statewide. "Working families and small businesses should not be forced to pick up the tab for private infrastructure built to serve some of the largest corporate customers in the world," said Rep. Rader.

Source: Ohio House of Representatives official press release (February 17, 2026)

House Bill 695: Prohibiting NDAs in Public Land Sales

Introduced February 2026, this bill would prohibit the use of non-disclosure agreements (NDAs) in connection with the sale or lease of publicly owned land. The Oregon situation—where the end user of the proposed 500 MW data center has not been publicly disclosed despite city land being involved—directly illustrates the problem this bill addresses. If passed, communities would be entitled to know who will ultimately operate facilities built on public land before votes are taken.

Source: Ohio General Assembly records

House Bill 710: PUCO Pre-Approval Requirement

Introduced February 2026, House Bill 710 would require any new data center in Ohio to demonstrate to the Public Utilities Commission of Ohio (PUCO) that its electric load will not result in higher electric rates for other customers before it can connect to the grid. Unlike HB 706 (which sets standards for utility contracts), HB 710 creates a pre-approval gate: data centers would need PUCO sign-off before construction begins. This would give state regulators direct oversight over the grid impact of large industrial electricity users before commitments are made.

Source: WFMJ News (February 26, 2026)

Ohio Senate Democrats' Package

On February 9, 2026, Ohio Senate Democrats introduced a comprehensive slate of six bills aimed at reining in data center development. The package includes measures to:

  • Eliminate the 100% sales tax exemption currently enjoyed by data centers
  • Grant counties and townships explicit authority to reject data center projects
  • Require Public Utilities Commission of Ohio (PUCO) review of data center power demands
  • Cap water consumption at 5 million gallons per day
  • Require data centers to invest in community power projects and weatherization programs

Source: Ohio Capital Journal (February 9, 2026)

HB 646 Advanced Out of Committee (March 3, 2026)

On March 3, 2026, the Ohio House Technology and Innovation Committee voted to advance HB 646 with amendments adding a requirement to study data center wastewater discharges. The commission would hold at least four public meetings and submit a report with non-binding best practices for local decision-making within six months. The study scope includes environmental impact, effects on the electrical grid and consumer utility rates, water usage, noise and light pollution, local economic impact, farmland impact, and national security considerations. Speaker Huffman has indicated the full House will vote on the measure before the end of March 2026. Democrats have raised concerns about the commission's composition, arguing it lacks representation from organized labor and gives the majority party disproportionate control over the selection of subject matter experts.

Sources: Ohio Capital Journal (March 4, 2026); The Toledo Blade (March 8, 2026)

Ohio GOP Sales Tax Veto Override (March 2026)

Ohio House Speaker Matt Huffman is actively pursuing a veto override of Governor DeWine's veto of a budget provision that would eliminate the state's sales and use tax exemption for data centers (in place since 2013). A veto override requires 60 votes in the Ohio House (there are 65 Republicans) and 20 in the Senate. Senate President Rob McColley (R-Napoleon) has signaled the Senate would likely follow suit if the House clears the threshold. Some Senate Democrats, including Sen. Kent Smith (D-Euclid), may also vote for the override. Smith argues the repeal would return $187 million per year to the Ohio general fund. Both the HB 646 vote and the veto override are expected before the end of March 2026.

Sources: The Toledo Blade (March 8, 2026); Ohio Capital Journal (March 6, 2026)

Ohio EPA Draft NPDES Permit OHD000001

The Ohio EPA has drafted a statewide general permit (OHD000001) that would authorize data centers to discharge wastewater into Ohio waterways under specified conditions. The 31-page, 5-year draft permit includes notable language acknowledging that "a lowering of water quality...is necessary to accommodate important social and economic development." Key limitations include a 500-yard upstream buffer from public water supply intakes. The public comment period closed in January 2026 and the permit is currently under review by Director John Logue. U.S. Senator Bernie Moreno (R-OH) has publicly opposed the permit, stating: "Ohio should not compromise the integrity of our waterways to help data centers."

The full draft permit is publicly available: OHD000001 Draft Permit (PDF)

Sources: Marietta Times, NBC4i, Cleveland.com (March 5, 2026); Senator Moreno press release (~March 1, 2026)

Industry Counter-Narrative: RGP Annual Meeting (March 5, 2026)

As the legislative debate intensified, the Regional Growth Partnership (RGP) — Northwest Ohio's economic development organization — used its annual meeting on March 5, 2026 to mount a coordinated defense of data center development. Approximately 700 people attended at the Glass City Center in Toledo.

RGP president and CEO Dean Monske stated there has been "an incredible amount of misinformation" about data centers and pledged to "overcome that misinformation." RGP EVP Gary Thompson led the data center pitch, citing Meta's $800 million data center in Wood County as a success story. RGP promoted claims of "closed-loop cooling" and water usage equivalent to "two Hampton Inn hotels" per day (approximately 30,000 gallons), and cited 100–150 high-paying jobs per facility.

Will Turner, identified at the meeting as Managing Director of the Upterra Group (the same Reston, Virginia firm whose personnel overlap with Capacity Infrastructure LLC), announced $1 million in grants to develop programs for high school students to prepare for careers in the trades. This is a separate, broader regional offer from the $500,000 Capacity Infrastructure offer to Clay High School specifically.

Note on the RGP claims: The "closed-loop cooling" and water usage figures cited by RGP have not been independently verified for the Oregon site specifically. The Capacity Infrastructure Q&A letter (February 27, 2026) describes a "closed-loop" system but does not provide site-specific daily water consumption figures. Residents and environmental advocates have raised concerns that these figures may not reflect peak operational conditions or the full water lifecycle of the facility.

Source: Toledo Free Press (March 9, 2026, David Yonke)

These legislative efforts reflect a growing recognition at the state level that communities need stronger tools and frameworks to negotiate with data center developers and protect residents from bearing the costs of infrastructure built primarily to serve private corporate interests.

7. Industry Context & Best Practices

The controversy in Oregon, Ohio, is not an isolated incident but rather a reflection of a broader trend of rapid data center development across the state and the Midwest, driven by the explosive demand for cloud computing, artificial intelligence, and data storage.

The Ohio "Data Center Alley"

Ohio has actively courted data center development, offering significant tax breaks and positioning itself as a key hub in the nation's digital infrastructure. This has led to a boom in data center construction in several parts of the state, bringing both economic benefits and a host of challenges similar to those being debated in Oregon. The rapid pace of development has outstripped the ability of many local communities to adequately assess the long-term impacts and negotiate favorable terms with developers.

The Ohio Capital Journal has argued that the situation in Oregon "tells us everything that's wrong with local and state government," pointing to a systemic failure to provide communities with the tools and frameworks needed to make informed decisions.

The Need for Statewide Regulation

The challenges faced by communities like Oregon have led to calls for more robust statewide regulation of the data center industry. In response to these concerns, Ohio lawmakers are considering the creation of a bipartisan commission to help communities make more informed decisions about data center development. This commission would provide guidance on best practices, help communities assess the environmental and infrastructure impacts of proposed projects, and ensure that development is aligned with the state's long-term interests.

Councilman Hornyak also highlighted a proposed federal bill from a U.S. Senator from Missouri that would require data center developers to commit to self-generation of power within a ten-year period, calling it "very important, very strong legislation" that could help all communities navigate these decisions.

Community Benefit Agreements as a Tool for Equitable Development

Community Benefit Agreements (CBAs) have emerged as a key tool for ensuring that data center projects deliver tangible benefits to the communities that host them. These agreements can address a wide range of community concerns, from job creation and local hiring to environmental mitigation and infrastructure improvements.

The Brookings Institution has advocated for the use of CBAs as a necessary component of data center development, arguing that they can help to create a more equitable and sustainable model for growth. Given that Oregon's acting city administrator has confirmed that an economic development agreement must still be negotiated and approved, the community retains a meaningful opportunity to secure binding commitments from the developer.

8. Conflicting Claims: What Is Disputed vs. Verified

The following table summarizes the key areas where public claims are disputed or unverified. Residents and council members should treat unverified claims — from any source — with appropriate skepticism until independent documentation is available.

IssueDeveloper / City ClaimCounter-Claim / ConcernStatus
Vote LegalityLaw Director Fifer: The 3-2 vote was a valid approval under Robert's Rules and the city charter.Initial public understanding and council announcement: The vote failed. Four votes were required.Unresolved publicly; AG declined to issue formal opinion but validated cited precedents.
Water UsageDeveloper: Closed-loop system will use only 20,000–30,000 gal/day, well within city capacity.Critics: Typical sites of this size use 0.5–1.0 million gal/day; Ohio EPA permit could enable much higher discharge.Unverified; no independent engineering review has been made public.
Electric Rate ImpactCity/Developer: Direct grid connection to 345 kV line means no effect on distribution system users; rates are set regionally.Critics: Data centers are driving utility rate increases statewide; Ohio Manufacturers' Association alleges AEP is using data center tariffs to support inflated load forecasts.Disputed; subject of ongoing PUCO proceedings and Ohio Supreme Court challenge.
Economic ImpactCity/Developer: $20M annual revenue; $26 in tax revenue per $1 in services (citing Loudoun County model).Critics: Permanent job creation is minimal; tax incentives cost more than they return; data centers projected to equal ~0.5% of statewide employment by 2030.Partially verified; Loudoun County figures are real but may not translate to Oregon's context.
Environmental CommitmentsDeveloper: Prefers to avoid wetlands; will use closed-loop cooling; will comply with all permits.Environmental groups: Ohio EPA's draft general permit is inadequate; site-specific review is needed; Lake Erie watershed is at risk.Unresolved; Ohio EPA permit comment period closed; final permit not yet issued.
Natural Gas PermitsDeveloper: Permitting for natural gas pipelines and emission controls is in progress.The need for these permits was the primary reason the six-month extension was requested. No formal opposition documented, but permits are not yet obtained.Unresolved; permits not yet obtained as of March 2026.

Sources: Capacity Q&A Letter (Feb. 27, 2026); City of Oregon FAQ; Alliance for the Great Lakes; Ohio Capital Journal; Weldon Cooper Center projections.

9. Conclusion

The proposed data center development in Oregon, Ohio, presents a complex case study of the opportunities and challenges associated with the rapid growth of the digital economy. The project offers the promise of significant economic benefits, including a multi-billion dollar investment and substantial tax revenue for the city and its schools. However, it also raises legitimate concerns about its environmental and infrastructure impacts, the transparency of the governance process, and the equitable distribution of its benefits.

The path forward will require a careful balancing of these competing interests. Greater transparency from the developer and the city council is essential to building trust and ensuring that the community is fully informed about the project's potential impacts. The still-pending economic development agreement represents a critical opportunity for the community to negotiate binding commitments on tax sharing, job creation, water usage, noise mitigation, and decommissioning obligations. The exploration of a formal Community Benefit Agreement framework could provide a valuable structure for these negotiations.

Ultimately, the experience of Oregon, Ohio, underscores the need for a more proactive and comprehensive approach to data center development at both the local and state levels. By learning from this experience and embracing best practices such as statewide regulatory frameworks and Community Benefit Agreements, Ohio can work to ensure that the growth of the digital economy benefits all of its communities equitably.

References
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  22. [22] Press Publications. (2026, March 2-3). Ohio Attorney General's Office Responds to Oregon's Ordinance Query.
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  24. [24] Signal Ohio / Columbus Dispatch. (2026, March 4). Ohio Republicans teeing up override of DeWine veto protecting data center tax break.
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