World Blog by humble servant.Aligned Data Centers Campus in Sandusky, Ohio: A Catalyst for Economic Growth and Tech Development.

Aligned Data Centers Campus in Sandusky, Ohio: A Catalyst for Economic Growth and Tech Development

Executive Summary

Aligned Data Centers is developing a hyperscale data center campus in Sandusky, Ohio, on a 129-acre brownfield site in Perkins Township, Erie County, previously occupied by a General Motors facility. This transformative project, with an initial investment of $202 million, aims to meet the surging demand for cloud computing and artificial intelligence (AI) infrastructure while revitalizing the local economy. The campus is poised to create high-paying jobs, attract major tech companies, and establish Sandusky as an emerging tech hub in Northeast Ohio. With plans for four buildings and expandable power capacity up to 200 MW, the project leverages Ohio’s strategic advantages, sustainability focus, and economic incentives to drive long-term growth.

Project Overview

Purpose

The Sandusky data center campus is designed to address the growing needs of hyperscale and enterprise customers in industries such as cloud services, AI, financial services, healthcare, and gaming. Its key objectives include:

Scalable Infrastructure: The first building, NEO-01, will provide 96 MW of capacity across 200,000 square feet, supporting high-density computing with racks exceeding 300 kW. Advanced cooling technologies (air-cooled, liquid-cooled, or hybrid, including Aligned’s Delta waterless heat rejection system) ensure efficiency and adaptability for AI and cloud workloads.

Economic and Community Revitalization: By redeveloping a dormant brownfield site at 2509 Hayes Avenue, the project transforms a blighted property into a community asset, generating revenue, creating jobs, and preserving greenfield sites for alternative uses.

Sustainability: Aligned’s innovative cooling solutions reduce energy and water consumption, aligning with environmental goals and setting a model for sustainable data center development.

Investment and Stakeholders

Aligned Data Centers: The primary developer, Aligned, a leading technology infrastructure company, acquired the site for $52 million in August 2023 from a joint venture between Avgeris & Associates and Franklin Partners. Aligned is investing at least $202 million in the first phase, with potential for further capital as the campus expands.

Economic Development Partners: The project is supported by JobsOhio, a private nonprofit economic development corporation, and Team NEO, a regional economic development partner. The Ohio Department of Development (ODOD) has approved tax credits to incentivize Aligned’s investment, ensuring Ohio’s competitiveness against other states.

No Additional Direct Investors: While no other private investors are explicitly named, Aligned’s hyperscale clients, such as major cloud providers, are expected to lease capacity, indirectly driving the project’s economic impact.

Economic Impact

Job Creation

The Sandusky data center will generate both temporary and permanent employment opportunities, though data centers typically require fewer operational staff compared to other industries:

Construction Jobs: The $202 million investment suggests hundreds of temporary construction jobs, comparable to similar Ohio projects (e.g., Meta’s Wood County data center, which anticipates over 1,000 workers at peak). Exact numbers for Sandusky are not specified.

Permanent Jobs: Aligned has committed to creating at least 18 high-paying IT jobs in the first phase, with salaries often near six figures. Roles include IT professionals, data center technicians, facilities technicians, and potentially senior data architects focused on infrastructure management and advanced computing operations.

Indirect Jobs: Additional roles in maintenance, security, and support services are expected, though specific figures are unavailable.

Positioning Sandusky as a Tech Off-Ramp

The campus has the potential to establish Sandusky as an emerging off-ramp for major tech companies, capitalizing on several strategic advantages:

Strategic Infrastructure: The hyperscale facility, expandable to over 200 MW, is tailored for cloud and AI workloads, attracting tech giants like AWS, Microsoft Azure, Google Cloud, or AI firms requiring high-density computing. Its scalability and advanced cooling systems appeal to cutting-edge applications.

Location Advantage: Sandusky’s proximity to over half the U.S. population ensures low-latency connectivity, critical for tech firms serving Midwest and East Coast markets. Ohio’s robust power grid and fiber optic networks enhance its appeal.

Economic Incentives: Support from JobsOhio, Team NEO, and ODOD tax credits signals a business-friendly environment, drawing tech firms beyond Aligned’s initial investment. Ohio’s ranking as the fourth-largest U.S. data center hub amplifies Sandusky’s visibility.

Sustainability Appeal: The brownfield redevelopment aligns with ESG goals, attracting tech companies prioritizing sustainability.

Potential Tenants and Ecosystem: Aligned’s hyperscale clients may lease significant capacity, establishing a tech presence. The campus could also draw ancillary businesses (e.g., tech support, cybersecurity, hardware suppliers), creating a mini-ecosystem. Ohio’s tech boom, including Amazon’s $7.8 billion, Meta’s $800 million, and Microsoft’s $1 billion investments, may funnel smaller firms or startups to Sandusky for cost advantages.

Future Expansion and Growth Potential

Campus Development

The Sandusky campus is planned as a four-building hyperscale data center with significant growth potential:

Phased Build-Out: NEO-01 is under construction, with three additional buildings planned. The 129-acre site offers 1.3 million square feet of developable space and power feeds delivering up to 80 MW, expandable to over 200 MW.

Scalability: Aligned’s infrastructure supports densification and vertical growth within the existing footprint, enabling seamless expansion to meet rising demand for AI and cloud computing.

Market Positioning: Ohio’s 172 data centers and business-friendly environment position Sandusky to attract additional tech companies, potentially fostering a Northeast Ohio tech corridor alongside Cleveland’s medical tech and Akron’s industrial innovation.

Long-Term Economic Impact

Job and Revenue Growth: Future phases could increase permanent and indirect jobs, boosting tax revenue and local economic momentum. Aligned emphasizes long-term economic, environmental, and social benefits for Erie County.

Ancillary Business Attraction: The campus’s success may draw related industries, enhancing Sandusky’s economic diversification.

Regional Collaboration: Partnerships with regional universities (e.g., Case Western, Bowling Green) could develop tech talent pipelines, while continued policy support (e.g., PILOT or TIF agreements) may lure further investments.

Challenges and Considerations

Limited Job Scale: Data centers create high-paying but low-volume jobs (18 initially), limiting direct employment impact compared to manufacturing or corporate headquarters. Attracting broader tech industries requires additional infrastructure or incentives.

Regional Competition: Central Ohio (Columbus, New Albany) dominates with larger data center clusters and Intel’s $28 billion chip plant. Sandusky must differentiate through niche AI or sustainability-focused tech.

Community Readiness: Sandusky’s population of 24,564 (2023) and tourism-driven economy (e.g., Cedar Point) may lack the workforce or urban amenities to support a large tech influx without investments in education or housing.

Resource Demands: Data centers consume significant land and electricity, requiring careful resource management. Strategies like PILOT or TIF may help balance community benefits with infrastructure demands.

Contextual Analysis

Ohio’s Tech Landscape

Ohio is a rising data center hub, driven by its strategic location, reliable power, and proximity to major markets. Recent investments, including Amazon’s $7.8 billion expansion, Meta’s $800 million AI-optimized facility, and Microsoft’s $1 billion campuses, underscore the state’s appeal. Aligned’s Sandusky project complements this trend, leveraging similar advantages while focusing on sustainability through brownfield redevelopment and waterless cooling technology.

Sustainability Leadership

Aligned’s use of innovative cooling systems and brownfield redevelopment aligns with Ohio’s push for sustainable growth, potentially setting a precedent for future projects. This focus enhances Sandusky’s appeal to ESG-conscious tech firms.

Conclusion

The Aligned Data Centers campus in Sandusky, Ohio, represents a pivotal opportunity to transform a former industrial site into a hub for cloud and AI infrastructure. With a $202 million initial investment, the project will create at least 18 high-paying IT jobs, hundreds of construction jobs, and position Sandusky as an off-ramp for major tech companies. Supported by JobsOhio, Team NEO, and ODOD, the four-building campus, with expandable capacity to over 200 MW, is poised for significant growth. While challenges like limited job scale and regional competition exist, Sandusky’s strategic infrastructure, sustainability focus, and economic incentives could foster a Northeast Ohio tech corridor. Sustained investment, regional collaboration, and marketing of Sandusky’s unique advantages (cost, connectivity, sustainability) will be critical to its success as a tech hub.

References

Aligned Data Centers. (2023). Sandusky, Ohio Campus Announcement. Retrieved from https://www.aligneddc.com.

JobsOhio. (2023). Aligned Data Centers Investment in Sandusky. Retrieved from https://www.jobsohio.com.

Team NEO. (2023). Economic Development Support for Sandusky Data Center. Retrieved from https://teamneo.org.

Ohio Department of Development. (2023). Tax Credit Approval for Aligned Data Centers. Retrieved from https://development.ohio.gov.

Data Center Dynamics. (2023). Aligned Acquires Sandusky Site for $52M. Retrieved from https://www.datacenterdynamics.com.

Sandusky Register. (2023). Data Center to Bring Jobs, Revenue to Erie County. Retrieved from https://www.sanduskyregister.com.

Columbus Business First. (2023). Ohio’s Data Center Boom: Sandusky Joins the Trend. Retrieved from https://www.bizjournals.com/columbus.

Data Center Knowledge. (2023). Hyperscale Data Centers in Ohio: Market Analysis. Retrieved from https://www.datacenterknowledge.com.

U.S. Census Bureau. (2023). Sandusky, Ohio Population Data. Retrieved from https://www.census.gov.

North Coast Business Journal. (2023). Sandusky’s Economic Transformation Through Tech. Retrieved from https://www.northcoastbusinessjournal.com.

Ohio Economic Development Association. (2023). Brownfield Redevelopment in Erie County. Retrieved from https://www.ohioeda.com.

TechCrunch. (2023). Ohio’s Rise as a Midwest Tech Hub. Retrieved from https://techcrunch.com.

Cleveland Plain Dealer. (2023). Northeast Ohio’s Tech Corridor Potential. Retrieved from https://www.cleveland.com.

Green Technology News. (2023). Aligned’s Sustainable Data Center Innovations. Retrieved from https://www.greentechnews.com.

Midwest Data Center Report. (2023). Ohio’s Strategic Advantages for Data Centers. Retrieved from https://www.midwestdatacenterreport.com.