Valley coalition forms to support data centers

BOARDMAN -- Don't be quick to dismiss data centers. There's room for talk, understanding and opportunity.

That’s the message from an organization of business, union and educational leaders that emerged Monday to promote data center development in the Mahoning Valley.

The co-founders of Mahoning Valley Coalition for a 21st Century Economy -- the Youngstown/Warren Regional Chamber and the Western Reserve Building Trades -- said at a news conference that education and conversation are needed to understand how the high-tech facilities can benefit the region and its economy. Their effort is backed by 29 entities -- from Youngstown State University and Brilex Industries to the Cafaro Company and SoftBank Group.

"We now have an opportunity, if we do this right, to reverse decades of brain drain, create a 21st century economy that helps us retain our best and brightest, and be the destination for other people's best and brightest," said Guy Coviello, president and CEO of the Regional Chamber.

The group's initiative comes as some Valley communities have rejected data center development.

Moratoriums have been enacted in Niles, McDonald, Girard, Warren, Newton Falls, Vienna, Howland, Braceville, Boardman, Cortland and Ellsworth Township. Voters in Hubbard voted to ban data centers in last week’s general election.

"Come to mutual agreements without moratoriums," Coviello said. "The indirect impact of moratoriums on the data center industry is it sends a message out to all industries that one slight thing and you might slap a moratorium on my industry or my business.

"When you say no to data centers, you say no to Hynes Industries. You say no to Wheatland Tube. You say no to Foxconn."

The Ohio Supreme Court recently backed the village of Lordstown in a zoning issue involving a data center developer.

During her campaign, Gov.-elect Amy Acton said she supported a conditional moratorium on data centers. She set six standards a developer must meet before coming into the state.

"As we start talking about bans and moratoriums and different things like that, that’s not the right way to go," said Marty Loney, president of the Western Reserve Building Trades. "What we don’t understand, or what we don’t have, is then an avenue to be able to sit down with these companies and make those community benefit agreements where it works for everybody."

Loney said the monetary benefits to the Valley are considerable.

"Everybody talks about temporary jobs, right?" he said. "An average-sized data center is about 1,700 construction jobs over a several-year period. That to me doesn’t sound temporary. That sounds like community benefits for our tax base.

"It’s a great way for young folks to have a great future here in the Valley."

He said the new coalition is designed to deliver accurate information to the public and to dispel fears.

"What we can’t lose sight of, though, is that people have legitimate concerns. ... We can't allow a small group of critics to dictate what's best for our local area."

Rick Organ, CEO of Austintown-based Hynes Industries, told the audience that the century-old steel company has evolved and grown. Data centers have played a role.

"It has profoundly impacted our business in a positive way," he said. "Over the course of the past two years, we have invested over $30 million in our business. We’ve doubled down to produce components and parts into the data center marketplace.

"We’ve been in it for a number of years. It represented about 10% of our business as recently as two years ago. Today, it represents 40% of our business."

Besides Hynes Industries, supporting the initiative are BBM Railway Equipment; Brilex Industries; Cafaro Company; Discover Global; Edge City; Foxconn; HBK CPAs & Consultants; HSH Contractor; Humtown Products; McDonald Industrial Development; Methodica Capital; North Jackson Commerce Park; Ohio Business Roundtable; Oppidan; Platz Realty Group; QUICKmed; Roemer Industries Inc.; Sharon Tube; SoftBank Group;

Sunbelt Solomon; Taylor-Winfield Technologies; Top Property Holdings; Warren Area Chamber of Commerce Economic Development Foundation; Warren Area Chamber of Commerce Education, Civic and Cultural Foundation; Western Reserve Port Authority; Wheatland Tube; Youngstown State University; and Zekelman Industries.

Covielli said he and Loney have already met with Boardman Township's zoning commission and the Trumbull County Council of Governments.

"We want to continue to offer ourselves to be available to come and speak to any public body that wants to receive our information, our handouts and also to ask us questions directly," he said.

That includes trips to communities opposed to data centers.

"We’ll certainly go everywhere that we are welcome to go and meet with folks."