WAVERLY, Ohio—A recent open house in this rural village offered the first public glimpse of plans for what may become the nation’s largest natural gas power plant and data center.
Over 100 residents gathered at a YMCA gymnasium on Thursday to view displays and discuss the project with staff from SB Energy, a SoftBank subsidiary. The materials detailed the $33 billion project, including the three types of gas turbines planned for use.
A map showing the power plant’s location south of the Portsmouth Gaseous Diffusion Plant, a former uranium enrichment facility, attracted significant attention.
“We do not need all these data centers,” commented Terri Slater, a retired educational aide from Jackson.
Slater’s view was not widely shared. Many attendees expressed no opinion or sought more information. Notably, there was no organized opposition, despite data centers often facing resistance in Ohio and beyond.
Waverly, with a population of about 4,100, is Pike County’s seat. The county struggles economically, ranking low in Ohio’s median household income and high in unemployment rate.
The PORTS Technology Campus, as the data center is known, faces financial challenges. Rising debt concerns investors, partly due to a report in The Wall Street Journal about OpenAI’s potential $250 billion financial arrangement with Nvidia. This poses risks if the project fails to generate revenue.
“There’s a lot of entanglement,” said Stijn Van Nieuwerburgh, a Columbia Business School economist. “They’re basically all bankrolling each other.”
Inside Climate News reported in May about analysts’ doubts concerning the power plant’s viability due to factors like natural gas price volatility.
Gina Doyle, a retired healthcare worker living nearby, is concerned about environmental effects, given historical harm from the uranium plant. She opposes the new development.
The proposed gas plant requires Ohio Power Siting Board approval. Its first phase is 2,000 megawatts, aiming for operation by 2028, later expanding to 10,000 megawatts, surpassing any U.S. gas plant.
The adjoining data center will initially demand 800 megawatts, expanding to 10,000 megawatts.
The project is notable for its size and origin, part of a U.S.-Japan trade agreement. Japan finances U.S. projects in exchange for tariff reductions, with 9,200 megawatts tied to this deal. SB Energy will arrange 800 megawatts more.
The open house focused on the PORTS Energy Center power plant, though residents discussed all proposals.
The power plant, covering 770 acres, will generate electricity to power the adjacent AI data center. SB Energy plans to revitalize southern Ohio’s economy, which suffered job losses following the uranium enrichment plant closure.
The project’s financial challenges concern investors. A working paper highlights potential risks if growth fails to meet expectations.
Microsoft’s optimistic forecast for cloud computing offers hope, but questions remain about revenue generation.
Pike County Commissioner Tony Montgomery acknowledged potential risks but emphasized the benefits of jobs and investment.
The power plant expects to employ 5,000 for construction, 400 planning and construction staff, and 110 operational staff.
Many residents are just beginning to understand the development’s implications. Some, like Dennis and Deborah Hopkins, received offers to sell their property but chose to retain their home.
Original Story at insideclimatenews.org