Skip to content
Breaking:

Ohio Senator Defends Energy Strategy as Data Center Infrastructure Sparks Political Debate

Sen. Jon Husted attributes rising utility costs to legacy power plant closures rather than massive tech computing hubs as data centers become a key campaign topic.

By The Company Wire4 min read
Share
Cleveland-Cliffs — Ohio Senator Defends Energy Strategy as Data Center Infrastructure Sparks Political Debate
Cleveland-Cliffs — Ohio Senator Defends Energy Strategy as Data Center Infrastructure Sparks Political Debate. Photo: CNBC Business.

Ohio Sen. Jon Husted defended the Trump administration's economic and energy strategy during a Friday appearance at a steel manufacturing facility, pushing back against political concerns over the rapid expansion of technology data centers across the state. Appearing alongside Vice President JD Vance at the Cleveland-Cliffs steel plant in Middletown, the Republican lawmaker disputed claims that power-intensive computing infrastructure is driving up electricity costs for consumers.

The remarks follow internal warnings from the National Republican Senatorial Committee, which described data center expansion as a "sleeper issue" this election cycle due to voter concerns over rising utility bills. The committee strategy document, obtained by CNBC Business and first reported by Axios, warned that "if voters' perceptions of data centers are not fixed quickly, the campaign against them will expand far beyond Ohio."

Ohio has emerged as a major hub for digital infrastructure, hosting several large-scale computing developments including a proposed 10-gigawatt data center campus in Pike County with an estimated cost exceeding $500 billion. However, the surging energy demands of such hyperscale developments have fueled broader political debate over grid capacity and consumer pricing.

Speaking to workers at the Middletown plant, Husted attributed elevated electricity prices to previous Democratic policies rather than recent data center construction. "You want to have lower electricity prices — I want to tell you why they're rising. Because Congress and, under the Obama administration, under the Biden administration, they closed 23 power plants in the state of Ohio, representing half the electricity we use on a daily basis," Husted said, asserting that "radical climate policies did that."

The political battle over energy and technology policy comes as polling shows Husted trailing former Democratic Sen. Sherrod Brown in a close reelection contest. The seat is considered essential for Republicans aiming to maintain control of the Senate, where strategists are monitoring headwinds related to inflation, the conflict in Iran, presidential approval numbers, and voter anxieties regarding technology infrastructure.

Husted and Vance were accompanied by other state Republican candidates, including gubernatorial nominee Vivek Ramaswamy, who is locked in a tight race against Democrat Amy Acton. During the event, officials highlighted federal funding for domestic manufacturing, including a $500 million Department of Energy grant awarded to Cleveland-Cliffs. Originally designated under the Biden administration for hydrogen furnace technology, the funding is now allocated for blast furnace improvements and artificial intelligence integration.

Cleveland-Cliffs said in a statement that it will match the $500 million federal grant, creating a total $1 billion investment in the Middletown facility that is expected to employ more than 1,500 workers during construction. "We can bring back manufacturing to this great country, in places like Middletown and across our great state," Husted told attendees. "And why is it important that we do this? Investments like this, a billion-dollar investment right here? Because it's job security, it's economic security, it's national security."

Sources

  1. CNBC Business

Company: Cleveland-Cliffs

Written by

The Company Wire

Newsroom · San Francisco

Inside the companies building what’s next. Reporting on startups, technology, funding and the people shaping them.