Will Piqua Get a Data Center?

Vol. III, No. 151 - School District Passes Tax Increment Financing Deal for Data Center

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For months, rumors have abounded that a data center is coming to Piqua, the past Piqua Board of Education showed the first action of a local government to acknowledge this rumor as fact, as the Board approved a Tax Increment Financing (TIF) agreement that will shift future property tax revenues, while keeping revenues coming to the school district.

One of the main ideas behind a TIF agreement is to help the city update roads, utilities, and public infrastructure that supports new growth, without placing extra tax burdens on residents. For this project, the city is using TIF tools to encourage the building of a data center by setting aside money generated from the rising property value of the land and facilities related to the project. This money, instead of going straight into regular taxes, is protected and used to pay for improvements that benefit the community as a whole.

But what does this mean for the city’s school district? Unlike some places where schools might lose out on new tax revenues because of these incentives, in Piqua’s deal, school funding is protected by regular payments from the city. Each year, the school district receives a payment based on the extra value the data center brings to the property—what’s called the “incremental assessed value” of the land. That means the district gets paid for each year that the TIF is active, with the payment tied to a formula based on the district’s share of property taxes and the property’s new value. These payments are made even though the physical structures of the data center are exempt from regular property taxes for quite a while.

In practice, there’s even more security for the schools, courtesy of a special agreement known as PILOT (payments in lieu of taxes). Beginning with the very first year that a new data center building triggers this agreement, the city sends the school district a direct payment of $100,000 per qualifying data center building. This goes on for up to 15 years for each building, meaning that as new data center buildings go up, each brings an additional layer of dependable funding to local schools. For those watching school budgets closely, this yearly payment is both consistent and predictable, which is important for planning, hiring, and program stability. Even in the midst of a complicated financial formula, the bottom line is clear—the school district receives steady support as the data center project grows.

If new parcels of land are added to the project down the road, or if more data center buildings are built, the agreement says the city must negotiate further compensation with the school district or provide payments that match those made for the original project area. The city promises to pay not just for the first wave of development but for future growth as well.

A data center itself is a large, purpose-built building packed with powerful computers, servers, and all the technology that keeps the internet, websites, and digital services running worldwide. These facilities are built for maximum reliability, with round-the-clock operations and top-notch security. They use a lot of electricity and water, which can be a concern. Data centers don’t create crowds or get much foot traffic, and sometimes they can be a little noisy, especially if large back-up generators kick in. Most jobs will be in technology, security, or construction, rather than typical retail, manufacturing or office work. That means, for some in the community, it might not feel as “open” or “active” compared to other development types.

Other communities in Ohio are actively halting these projects, even though there are over 150 data centers in the state.. Jerome Township in Union County near Marysville recently enacted a moratorium on data centers. Two current Amazon Web Services Data Centers in the community are reported to have low-frequency noise upsetting neighboring property owners. The moratorium allows the community to assess zoning their zoning code possibly making data centers from permitted to conditional use; requiring some approval from a board or commission. Lordstown, in Trumbull County, recently heard the first hearing of an ordinance outright banning these centers in their community.

On the bright side, data centers could be a positive for the economy of a city. Piqua might be thrust onto the map as a destination for technology investment and innovation, which can open doors for new business and future projects. While full-time jobs within the data center can be limited, construction work and specialized roles offer opportunities for local talent, especially in technical and security fields. There’s a ripple effect, too—the city can use TIF funds freed up by the deal to improve roads, utilities, and public spaces, paving the way for future growth. These upgrades benefit everyone, not just those connected directly to the data center.

Most importantly for families and students, the school district doesn’t lose out in this deal. The agreement details exactly how and when payments will arrive, building stability into school finances for many years to come. The city is bound by law and the signed compensation agreement, so the risk of schools seeing sudden drops in support or getting left behind is low. In fact, as the data center site grows, so do the annual contributions to the school district, allowing for better infrastructure, programming, and overall educational quality for Piqua’s students.

A potential data center in Piqua may bring challenges around resource use, land impact, and the types of jobs available and a more robust community conversation is ripe for this type of intensive development on the city’s south side. But regardless, the TIF agreement and PILOT (payments in lieu of taxes) payments make sure growth protects the district’s teachers and students. For Piqua, this is a moment to balance new technology and community needs, making sure that the future is shaped with both innovation and fairness, all within an agreement that spells out the financial guarantees for years into the future.​

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