Proposed Data Center FAQ

Our Data Center FAQ page is designed to be a living document. As the project progresses and new information becomes available, this page will continue to be updated and expanded to reflect the most current details. We are committed to transparency and will add answers to new questions, clarify topics of interest, and share relevant updates to keep residents informed every step of the way.


Last updated: January 29, 2026

General Information

What is being built in Sidney?

Amazon Web Services (AWS) is developing a new, state-of-the-art data center facility in Sidney, Ohio to support cloud computing services used by businesses, governments, and organizations worldwide.

Where will the data center be located?

The facility will be located on the north side of Millcreek Road, west of Vandemark Road.

Why was Sidney chosen?

Sidney offers strong infrastructure, available land, reliable utilities, and a supportive business environment — making it attractive for major technology investments.

Will this create jobs?

Yes, the project is expected to create local/regional construction jobs during the build phase and approximately 75 long-term, skilled operational jobs once the facility is operational.

How will this impact the local economy?

The project will increase demand for local services, housing, restaurants, and retail, while diversifying Sidney’s economy beyond traditional industries.

Why did the City Manager sign a Non-Disclosure Agreement (NDA)?

Large economic development projects routinely require NDAs during early stages. The NDA allowed city staff to evaluate the project, review infrastructure needs, negotiate terms, and protect Sidney’s interests while details were still confidential. This protects the City’s negotiating position and ensures compliance with legal and competitive requirements. Once the project reached a public stage, information was shared through the appropriate public processes.

Why wasn’t the public informed sooner?

Early confidentiality is standard for projects of this size. At the initial stage, there was no guarantee the project would move forward. Public disclosure occurs once plans are defined and subject to public approval, ensuring accurate information is shared rather than speculation.

Who oversees the data center once it’s built?

 All businesses must comply with all local, state, and federal regulations. 

Is this project final, or could it change?

As with most large developments, details may evolve through permitting and construction. Any significant changes remain subject to City review and approval processes.

Why are some public records redacted?

Ohio’s Public Records Act provides broad access to public records, but it also allows certain information to be withheld when disclosure would create safety or security risks. Records that reveal the configuration, vulnerabilities, or security features of critical infrastructure—such as water systems, transportation networks, or communications systems—may be lawfully redacted to prevent potential harm.

When redactions are made, the City is still required to release all non-sensitive information and to identify the legal basis for any exemptions. These redactions are intended to protect public safety and essential services, not to limit transparency. Transparency means sharing information responsibly while safeguarding infrastructure that residents rely on every day.

These security-related provisions and practices were strengthened and became effective after September 11, 2001, as governments at all levels reassessed how public records disclosures could unintentionally expose vulnerabilities in critical infrastructure.


Tax Concerns

Are we giving too much away with tax abatements?

The tax abatement was first approved by the Sidney City School District Board of Education and subsequently presented to the City Council for final approval. Tax abatements are a common economic development tool used to attract major investment. In return, the City gains a multi-million-dollar investment, long-term jobs, infrastructure improvements, and $50 million in PILOT payments that would not have existed without the project. Of that amount, the City will retain $25 million, while $25 million will be distributed to Sidney City Schools. 

I’ve heard the Community Reinvestment Area (CRA) agreement goes beyond 30 years. Is that true?

The CRA agreement is structured around the timing of construction and the point at which each building becomes taxable. Operations are estimated to begin by December 31, 2028, with job creation (75 jobs) required by December 31, 2030. For each building, the tax exemption begins in the year the improvement is first placed on the tax rolls and continues for 30 years, with no exemption extending beyond tax year 2065. Any improvements not on the tax rolls by tax year 2035 are not eligible for the exemption.


Water & Electric Concerns

Will residents pay higher water or utility bills?

Infrastructure planning ensures adequate capacity before large users are connected. Utility rates can change over time, and like many services, they may adjust gradually to keep pace with normal inflation and the cost of maintaining reliable service.

What about electricity rates and supply?

AES is an investor-owned utility and operates independently of the City. AES Ohio is a transmission and distribution provider. AES Ohio does not own generation.  Its customers purchase electricity separately from a competitive retail electric supplier. Recent rate increases are due to aging infrastructure and sharply rising capacity costs for 2025–2026, which were reviewed and approved by state regulators.

The city locked in a fixed-rate, 29-month contract for its electric aggregation program. The new rate, $0.0908/kWh, will begin with the December 2025 meter reading and will continue through May 2028. Dynegy Energy will continue as the city’s electric aggregation supplier of choice.

The city also locked in a fixed-rate, 24-month contract for its natural gas aggregation program. The new rate, $0.6349/Ccf, will begin with the November 2025 meter reading and will continue through the November 2027 meter reading. AEP Energy will serve as the city’s natural aggregation supplier of choice. Ohio law requires that a new round of Opt-Out notices be sent to all eligible households and businesses. Residents wishing to remain in the city’s aggregation programs may simply ignore the mailings and will automatically be enrolled under the new rate.

Follow the link for more information about the aggregation program:

https://www.sidneyoh.com/232/Electric-Natural-Gas-Aggregation

Can Sidney’s water system support this facility?

As part of the due diligence conducted by the city regarding the impact on city-provided utilities, scenario analysis was performed for both water and sewer. The results of both indicate that there are no major water pressure or velocity concerns, nor does the project cause any additional issues downstream from a sanitary sewer perspective. The City of Sidney’s water system has sufficient capacity and multiple sources to support existing needs and planned growth, including the AWS facility, without impacting service to residents or businesses.

What about water supply and contamination?

Protection of the public drinking water supply is governed by federal and state regulations and overseen by the Ohio EPA. The City regularly monitors its public water system to ensure it meets all required standards. Private wells fall under the authority of the local health department. If a potential contamination concern arises, the City works closely with the Ohio EPA and other appropriate agencies to investigate and take any necessary actions to safeguard public health.

Follow this link to see a list of Drinking Water Consumer Confidence Reports:

https://www.sidneyoh.com/Archive.aspx?AMID=49

How does the City address chemicals being used at the site? Is the City equipped to treat them and ensure my water will be safe?

Potential chemicals used at the industrial site are reviewed through the City’s industrial pretreatment program, with support from Ohio EPA and engineering consultants, to determine whether they can be safely treated at the wastewater treatment facility. This review evaluates the type, concentration, and volume of chemicals that could enter the sanitary sewer system. If a chemical is not suitable for treatment, the City may require pretreatment, operational changes, or prohibit discharges to protect the wastewater system and to ensure regulatory compliance.

The City has 16 significant industrial users (SIU), and is used to handling these types of users. An industrial customer can become SIU by falling to any of these categories:

  1. A federal categorical process
  2. Process flow exceeding 25,000 gallons
  3. Discharges 5% or more of the average dry weather flow or organic load to the publicly owned treatment works (POTW)
  4. Has the potential to negatively impact the POTW

What about corrosive wastewater?

The City of Sidney’s sewer use ordinance prohibits the discharge of corrosive wastewater that could damage the sanitary sewer system or cause interference with the treatment processes. Through the City’s Industrial Pretreatment Program, and in coordination with the Ohio EPA, discharges are reviewed to ensure compliance with these prohibitions. If necessary, industrial users may be required to provide pretreatment or make operational changes to control corrosive characteristics before discharge to the sanitary sewer system.

What about nitrates?

Wastewater discharges are reviewed through the City’s Industrial Pretreatment Program, with support of the Ohio EPA and engineering consultants, to ensure it meets federal, state, and local requirements before entering the sanitary sewer system. If needed,   industrial users may be required to provide pretreatment or implement operational changes to reduce pollutant levels to those that can be safely treated at the City’s wastewater treatment facility.  This review helps ensure the treatment plant continues to operate safely and remains in regulatory compliance.

What are the impacts on the wastewater treatment?

Potential impacts to the wastewater treatment facility from industrial discharges are evaluated through the City’s industrial pretreatment program, with support from Ohio EPA and engineering consultants as needed. This review is conducted to determine any potential effects on the sanitary sewer system and wastewater treatment processes. If a discharge could negatively impact system operations or regulatory compliance, the City may require pretreatment, operational changes, or restrict discharge to protect the wastewater treatment plant and receiving waters.


Environmental Impact Concerns

What are the environmental impacts to local wetlands and private water wells?

Wetlands near City limits are regulated by state and federal agencies, and the City does not have direct authority over them.  Private water wells are regulated by the local health department under state requirements. Stormwater activities at industrial locations are regulated and overseen by the Ohio EPA.

What about light pollution?

Zoning Code Regulation – Section 1105.02 (reviewed during the site plan permit process): A photometric lighting plan is required to evaluate site lighting. Light levels may not exceed 0.5 foot-candles at residential property lines or 2.0 foot-candles at non-residential property lines, ensuring lighting remains appropriate for surrounding uses.

What about traffic, noise, and construction disruption?

Construction impacts are temporary, anticipated to be a 4-year buildout, and regulated. Once operational, data centers generate minimal daily traffic and must meet all local noise and zoning standards.

Will the project increase traffic or speeding in the area?

Traffic impacts are evaluated during the review process, and planned roadway improvements are identified where necessary to address increased traffic volumes and promote safe travel speeds.

How is the proposed data center different from the former Wagner Manufacturing site, which later became an environmental cleanup issue?

Wagner Manufacturing was constructed and operated long before modern environmental protections existed—the U.S. Environmental Protection Agency was not established until 1970, well after Wagner’s construction in the late 1800s and much of its operation. In contrast, the proposed data center would be developed and operated under today’s comprehensive federal and state environmental regulations, with oversight from regulatory agencies that did not exist during Wagner’s era.


Economic Development Process

How do economic development projects typically move through the site-selection and approval process in Ohio?

Economic development projects generally follow a multi-step process designed to evaluate feasibility, compliance, and long-term viability:

  1. Initial Evaluation: Companies first identify and prioritize key factors such as labor availability and cost, utility capacity, transportation access (road, rail, air), supply chain needs, taxes, and potential incentives.
  2. Partner Coordination: Companies work with organizations such as JobsOhio, regional partners like the Dayton Development Coalition, and local economic development organizations to identify potential sites that meet their needs.
  3. Due Diligence and Site Analysis: Potential sites are carefully evaluated, including:
    • Labor market: Workforce availability, education levels, and wage rates
    • Infrastructure: Power, water, broadband, roads, and logistics
    • Regulatory requirements: Zoning, environmental rules, and permitting
    • Incentives: State and local tax credits, grants, and abatements
    • Environmental reviews: Phase I assessments, wetlands, and protected species
    • Site visits: On-the-ground evaluations
  4. Final Site Selection: Companies conduct detailed financial modeling that accounts for incentives, operating costs, and capital investment. A final decision is made based on a comprehensive scoring of all prioritized factors.

Several entities may be involved throughout this process, including JobsOhio, the Ohio Department of Development, the Dayton Development Coalition, and SiteOhio, which certifies sites that are ready for development.

How does Sidney’s site plan approval process work, and how does it differ from the City of Wilmington’s process?

In Sidney, site plan approval is governed by Zoning Code Section 1115.09. The site plan review is conducted administratively by the Zoning Code Administrator (Community Development Director) and includes technical reviews from City departments such as Zoning, Engineering, Fire, and Underground Utilities.

While the public is always welcome to attend and observe any public meeting, including Planning Commission meetings, the Sidney Planning Commission does not review or approve site plans for this proposed development. This differs from the City of Wilmington’s structure, where site plans are reviewed by the Planning Commission. In Sidney, site plans are evaluated by a committee of City staff members through an administrative review process.

How is the City ensuring it has the right expertise when discussing data center development?

The City engages data center industry leaders and qualified experts as part of ongoing discussions. In addition to in-house professional staff, the City has retained outside consultants and legal counsel throughout the process to ensure technical, regulatory, and legal considerations are fully evaluated.

Is the Sidney Fire Department properly equipped to respond to a potential data center fire?

Yes. Data center facilities must meet Ohio State Emergency Response Commission (SERC) requirements and comply with applicable fire suppression and life-safety standards of the Ohio Fire Code. These requirements are reviewed as part of the development and permitting process to ensure emergency response capabilities are appropriate for the facility.

Resource Links

Official Sidney Website – Documents on Demand https://sidneycityoh.documents-on-demand.com/  

Ohio Chamber Foundation – Economic Impact of Data Centers in Ohio - https://ohiochamberfoundation.com/projects/the-economic-impact-study-of-data-centers-in-ohio/

About AWS  https://www.aboutamazon.com/impact 

Drinking Water Consumer Confidence Reports  https://www.sidneyoh.com/Archive.aspx?AMID=49

Sidney Aggregation Program https://www.sidneyoh.com/232/Electric-Natural-Gas-Aggregation