Ohio Senate bill targets data center water use, shifts infrastructure costs to developers

Ohio lawmakers are advancing legislation that would place new requirements on data centers’ water usage and their impact on municipal infrastructure systems. 

Senate Bill 378, introduced March 16, would require data center operators to cover all water and sewer infrastructure costs attributable to their facilities, ensuring those expenses are not passed on to existing utility ratepayers. According to Spectrum News 1, the measure also establishes a permitting framework for consumptive water use, with limits on withdrawals exceeding an average of 5 million gallons per day over a 30-day period.

Under the proposal, permits could be denied or revoked if water withdrawals pose risks to public supply or exceed approved thresholds. The bill comes amid growing concern over the rapid expansion of data centers in Ohio—particularly AI-driven facilities—which can consume millions of gallons of water daily for cooling.

The legislation follows a separate House proposal aimed at preventing infrastructure upgrade costs tied to data centers from being shifted to customers, Spectrum News 1 reported. Together, the measures reflect increasing regulatory scrutiny over how large-scale data infrastructure projects affect water systems, utility planning and long-term infrastructure investment.

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