Edgewood City Schools in Trenton says tax revenue from an Amazon Web Services data center under construction in the district will help it avoid a major projected financial deficit in 2031.
The 250-megawatt data center is being built in Trenton's industrial park, a few miles south of Edgewood High School and Trenton Elementary School. Some in the community oppose the project and have put a proposed charter amendment on the ballot that, if approved, would prohibit building any data center larger than 25 megawatts.
The ballot issue, which will appear as Issue 17 on ballots in Trenton, has faced legal challenges, and it's unclear whether the charter amendment could halt construction on the Amazon Web Services data center already underway. City officials have also indicated they may file a lawsuit if the issue passes.
Edgewood Schools said in a release that it's not taking a stance on Issue 17, but wants the public to know that tax revenue from the project will leave the school system with a nearly $1.78 million positive cash balance by 2031. Without it, the district may face a deficit of more than $20 million, according to its most recent financial forecast.
Under an agreement approved by the City of Trenton this summer, the data center's developer, Prologis, will receive a 15-year, 75% tax abatement, allowing it to pay a fraction of local property taxes. The district anticipates receiving a one-time up-front payment of $940,000 from Prologis, and $1.3 million in additional tax revenue each year for the next 15 years. After the tax abatement ends, Edgewood Schools would receive around $3 million annually.
Molly Bryden, Climate & Sustainability researcher for Policy Matters Ohio, says it's not unusual for developers to offer upfront payments to municipalities and school districts to incentivize support for data center projects, and they come at a time when many Ohio school districts are struggling financially.
"They will include pilot programs, or payments in lieu of taxes. The company will make a lump sum or annual payment to the community," Bryden said. "[For] a smaller community that's been dealing with decades of disinvestment, any deal that big can be sometimes hard to turn down."
The district says it's sharing this information so close to the Nov. 3 election not to take a side on Issue 17, but because complete financial figures recently became available.
"We recognize that data centers are a complex and deeply debated topic with many non-financial factors for residents to weigh," a statement from Edgewood reads. "Our goal simply is to ensure our community has accurate factual data regarding the district's financial outlook to assist with community understanding."
Supporters of Issue 17 say the ban would protect residents from increased pollution, noise, and higher utility bills linked with data center development.
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