Data centers have recently become a major topic of conversation across the state, especially in Southeast Ohio. Athens was recently contacted about a potential data center in the area, which led to a year-long moratorium on data center talks, according to a previous report by The Post.
Chillicothe is now following suit, with the city council passing a 60-day data center moratorium blocking the development of any data centers.
The moratorium was introduced by City Council At-Large member Kathy Dunn, who said it was necessary to pause the data center talks to gather more research and public input.
While the moratorium was passed Aug. 24, the city council meeting Aug. 10 showed citizens in support of it.
According to the Aug. 10 Chillicothe City Council meeting minutes, two individuals attending the meeting voiced concerns regarding the proposed data center and two other individuals expressed support for a moratorium on data centers.
Gunner Barnes, Chillicothe Third Ward council member, said the city government was caught off guard by the news of the potential data center, because they found out about the plans the same time the citizens did.
“Myself, the mayor, most of city council, we had no idea,” Barnes said. “So, we were just as shocked as the citizens, but then, of course, some citizens thought we did know because a lot of people think that we know about every single business that comes into town, and we just don't.”
The area where the data center would be built is the former Chillicothe Paper Mill. The paper mill, previously owned by Pixelle Specialty Solutions, was sold to U.S. Paper Mill Company LLC, a subsidiary of U.S Medical Glove, in October 2025, according to the Chillicothe Chamber of Commerce.
The U.S. Paper Mill has been developing nitrile medical gloves since taking over the space.
The U.S. Paper Mill Company now plans to transform the site into a multi-purpose campus, with one part dedicated to glove making, another dedicated to building airplane parts and data center parts and a third area dedicated to housing the actual data center, according to Barnes.
The U.S. Paper Mill Company announced the news in a press release through the Chillicothe Chamber of Commerce.
“Through strategic partnerships with Amphibian Aerospace Industries, Inc. (AAI), U.S. Medical Glove Company, Aligned, and U.S. Box Company, the campus is positioned to become a national model for repurposing legacy infrastructure into a dynamic economic growth corridor, paving the path for new industries, high-skilled employment, domestic supply-chain resilience and long-term prosperity,” the press release said.
The glove-making expansion is expected to bring 150 onsite jobs, while the airplane manufacturer is expected to bring “between 150 and 200 direct advanced manufacturing jobs, more than 500 indirect jobs.”
Barnes said people were surprised to hear about the proposed data center facility.
According to Dunn, there was not much publicity regarding the data center, and if it was announced, it was overlooked. She also said a moratorium was vital to a greater understanding of the situation as a whole.
“I felt like the only way that we could make a good decision that worked for the people we serve, and the whole issue was to just pause and have more time to learn more about it and understand what it is that this or any other company might want to do,” Dunn said.
The moratorium is in place, as of right now, for 60 days. In that time, Dunn hopes to look into the data center’s potential impact on Chillicothe citizens as well as reach out to workers at the plant to understand the infrastructure.
“One of the things I'm going to do is go to a one-day information conference that's up in Newark,” Dunn said. “I wanted time to go to that where I could also learn more about what other cities were doing in the state and what other communities have done or were planning on doing when it came to any kind of legislation affecting data centers.”
Even though the moratorium expires Oct. 23, Dunn said it is possible to amend the legislation and lengthen the moratorium if the council deems it necessary.
Some of the main concerns with the data center, according to Barnes, include water intake, impact on utility bills and property values. He said that he hopes the moratorium will allow council members to understand more about the data center and any impact it will have on citizens.
“We don't know how big it's going to be,” Barnes said. “We don't know anything, and certain people on council have been talking to the owners and such, but there's just information out there. Some people are getting fed different information. Nothing's just linear across the board. So those are times where we all need to be on the same page here.”
Nothing with the data center has been officially determined or decided, as both Barnes and Dunn said there are still many avenues to consider and more aspects of it to look into. However, Dunn did say the Council will make a decision that works best for the people it serves.
“There's just a lot that has to go into it, and I think that we need to really study it for the benefit of the people we serve,” Dunn said.
