A Columbus suburb wants to thwart Amazon’s plan to build a six-acre plot of 228 natural gas-fed “fuel cell” units. Each will use an electrochemical reaction to fuel the staggering power demands of the company’s already-built, 142-acre data center operation.
In Hilliard, a suburb to the capital city’s northwest, a subsidiary of utility company American Electric Power wants to build the fuel cells to deliver 73 megawatts of power for one of Amazon’s two Hilliard megacampuses. Amazon is also seeking a permit to operate its recently built fleet of 158 backup diesel generators, which has prompted a grassroots opposition campaign alongside the suburb’s legal resistance.
There are 194 data centers in Ohio, according to Data Center Map, with more joining the development queue by the day. Developers hope these kinds of “behind the meter” power systems can help the grid absorb the spike in new power demand without the public paying for the expensive upgrades to facilitate the trend. While most power plants provide energy for the entire, multi-state electrical grid, “behind the meter” plants feed one particular, privately owned data center.
The city has described the fuel cell project as the largest of its kind in North America.
At first, Hilliard officials tried to box out Amazon’s fuel cell proposal by rezoning the area. After learning they were overpowered by a state government that claims total authority over power siting decisions, the city is now asking an administrative judge to rule the Ohio EPA failed to give notice to the local government before issuing a permit to the developers. That appeal is ongoing.
If built, the fuel cells and diesel generator array would give the company enough private, “behind the meter” electricity to power a small city. And that’s only talking about one of the company’s Columbus-area campuses.
It would also amount to the state government telling a city it has no right to reject a novel, industrial-scale power plant for the private use of one of the world’s largest companies.
“I was unaware that putting in a data center meant putting in a mini gas power plant and all these other things with it,” said Annette Singh in an interview, a local activist who has joined the city’s legal effort.
“That has a huge effect on air quality and safety of anyone living near it. I’m just trying to publicize what is happening in my neighborhood so people are aware of what could happen in their neighborhood.”
Local governments ask the state to back down
Instead of combustion, Amazon wants to use 6.4 acres to host fuel cells using chemicals, not heat, to convert natural gas into electricity. The fuel cell developers, California-based Bloom Energy, emphasize the process emits less carbon dioxide, a greenhouse gas, than combustion would. It also avoids emission of pollutants like nitrogen- or sulfur oxides.
However, Hilliard has hired lawyers to challenge Amazon’s air permit, which allows emissions of up to 1.45 million pounds of carbon dioxide per day, comparable to the output of 66,000 cars, according to the city.
The legal resistance to the data center’s energy underbelly comes as some Americans are growing wary of the facilities’ effects on electricity prices, the tax perks they enjoy, and their potential to enable job-replacing artificial intelligence.
Such arena-sized data centers are the brain cells of the modern AI boom. But grid operators have warned that their demand could soon outstrip the available power supply. And for that reason, industry analysts blame data centers for recent surges in electric costs.
State and local governments, for about a decade, have welcomed the facilities with open arms, lavishing them with $2.5 billion in exemptions, according to industry estimates. Statewide, that’s a sales tax exemption costing Ohio an estimated $143 million this year. Locals often go further, including Hilliard, which in 2019 offered Amazon a 15-year, 100% property tax abatement.
However, as some cities have more recently come to oppose the data centers, they’ve found formidable adversaries in companies like Google, Amazon, Meta and others that own them.
After the city’s failed effort to change zoning laws to stop the fuel cell development, city officials hired lawyers to challenge Amazon’s air permit in the Environmental Review Appeals Commission.
“The City of Hilliard is disappointed to not have the opportunity to formally review the project as we would with almost all other new development projects in Hilliard,” said Acting City Manager Dan Ralley in a news release.
”These are the types of issues that should be addressed at the local level. It’s regrettable that state lawmakers have overridden local oversight, particularly since this technology is unfamiliar and new not just to our City, but also the entire State.”
The trustees of Norwich Township, a local subdivision, have sided with Hilliard on the issue. In a letter to state officials, the trustees voiced concerns about “unresolved and unacceptable risks” to public safety. Fire officials, they say, have not been consulted about the risks of an eight-inch pipeline that feeds the fuel cells natural gas.
“Of particular concern are the life safety implications associated with the delivery and storage of large volumes of pressurized natural gas, the release of significant quantities of carbon dioxide, fire and explosion hazards, and the potential of mechanical or system failures,” they wrote.
“These risks are compounded by the proximity of this facility to residential neighborhoods and critical roadway infrastructure.”
Residents say they don’t want diesel fumes near a park
Annette Singh said she never engaged with the political system until she heard about the fuel cells.
Now, she’s a party alongside the city in a little-known appeals court, and she’s lobbying the Ohio EPA to reject a draft of a permit that would allow Amazon to begin using its 158 diesel generators.
She said there’s a public park 1,000 feet away from the generators’ site, a neighborhood close to 2,000 feet away, and a school approximately 4,000 feet away. The generators would pollute the air, and the permit doesn’t provide clear guidance for how frequently Amazon could run them.
“It’s like, you’re using my community, and then you’re going to use so many more communities,” she said in an interview.
Experts say exhaust from diesel, a type of fuel derived from crude oil, causes cancer and other health problems. Backup generators are common at data centers and used for backup power and other needs. They are also common across many facilities, including public drinking water and wastewater treatment plants, hospitals, and private businesses, according to Ohio EPA spokesperson Bryant Somerville. Amazon says the generators ensure uninterrupted operations zero to two times per year, mostly for weather events.
More than 50 data centers have received air pollution permits, mostly for diesel generators, Somerville said.
Anna Cannelongo, writing to the Ohio Power Siting Board, questioned how seemingly brand-new technology in the fuel cells can be deemed safe.
“There is no real research about the safety of this kind of power plant, and it’s sitting adjacent to a neighborhood and elementary school on Hilliard,” she said. “How do we get our voices heard as Amazon has bypassed our local government to get approval through you all?”
What the companies say
In a statement, AEP said fuel cells have proven to be a “safe, clean solution” for meeting customers’ needs. They exist around the U.S. and produce 30% to 45% fewer carbon dioxide emissions.
“We understand that new energy infrastructure projects can raise questions and concerns, and we take those concerns seriously,” the company said. “The project has undergone extensive regulatory review to ensure it meets all applicable safety, environmental and operational standards. Our focus remains on delivering reliable energy solutions that comply with the law while minimizing impacts on surrounding communities.”
In response to inquiries, Amazon touted its 24 wind and solar projects around Ohio and its regular engagement with community stakeholders as it builds out operations.
“We care about the communities in which we operate, and ongoing conversations with residents and partners help ensure solutions benefit the region,” said spokeswoman Kylee Yonas.
“Our work with utilities focuses on ensuring reliable electricity while bringing carbon-free energy sources like solar and wind online. In Hilliard, the local utility, AEP, will temporarily use fuel cells to power part of our data center operations while larger Ohio power infrastructure upgrades are completed.”
