News Summary
Amazon has announced a major investment in Hilliard, Ohio, planning to build a 590-acre data center campus after acquiring land for $102 million. This is part of AWS’s broader $10 billion investment plan in Ohio by 2030, which has increased the budget for data centers in the state significantly. Concerns over energy consumption and job opportunities arise as data centers become a vital part of Ohio’s economy, shaping real estate and infrastructure demands.
Hilliard, Ohio Welcomes Massive Data Center Investment
Amazon is making a significant move in Hilliard, Ohio, by building a substantial 590-acre data center campus after acquiring two plots of land for $102 million. This initiative is part of a broader plan by Amazon Web Services (AWS) to invest $10 billion in data centers across the state by 2030.
The announcement has raised AWS’s budget for Ohio data centers from $13.8 billion to $23.8 billion, representing a remarkable 72% increase. This expansion reflects a growing demand for data-driven applications and artificial intelligence, as businesses increasingly rely on robust data management and processing capabilities.
Current Landscape of Data Centers in Ohio
Ohio is currently home to approximately 190 data centers, with 121 located around Columbus and 24 in the Cleveland area. These data centers are significant consumers of electricity, with some requiring up to a gigawatt of power, comparable to the energy consumption of small cities. This has raised concerns about energy management, leading to the state’s approval of a special tariff on data center power aimed at addressing the increasing load from new facilities.
The trend of data center construction has surged in recent years, with companies like Shook Construction in Brecksville witnessing increased project demands and hiring more employees to manage the influx. The average cost of constructing a data center stands at about $10 million per megawatt, making any new development an enormous investment.
Job Creation and Economic Impact
Construction of data centers typically results in the creation of hundreds or even thousands of jobs during the building phase. The “hyperscale” data centers have become particularly prevalent, consuming between 25 to 100 megawatts of power and requiring large investments. A recent survey indicated that 95% of professionals in the data center sector plan to boost their investments this year, with 41% aiming to allocate $500 million or more.
Data centers also face unique challenges, including competition for land with industrial buyers. However, as their infrastructure needs expand, data centers are becoming the dominant force in the real estate market. The state of Ohio provides a Data Center Tax Abatement Program, which offers exemptions on sales tax for construction materials and relevant equipment for investments over $100 million.
AWS Growth in Ohio
Since establishing its first data center in Ohio in 2016, AWS has expanded its operations significantly, now managing five facilities in the Columbus area alone. Furthermore, AWS is exploring opportunities for as many as eight new sites for data centers, branching out beyond Central Ohio into other areas of the state.
As data generation continues to skyrocket, the demand for larger and more efficient data centers remains unrelenting. However, some locations may struggle with latency issues due to inadequate fiber infrastructure, which can impact performance and user experience.
With the development of land prices rising due to the high demand for data centers, the landscape of technological infrastructure in Ohio is evolving rapidly. The latest investment from AWS signifies this growth and illustrates the state’s increasing importance as a hub for data management and services.
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Additional Resources
- Crain’s Cleveland Business
- Columbus Dispatch
- The Washington Post
- USA Today
- Amazon Web Services News
- Wikipedia: Data Center
- Google Search: Data Centers in Ohio
- Google Scholar: Data Centers Ohio
- Encyclopedia Britannica: Data Centers
- Google News: Ohio Data Centers
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CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton
