Wapakoneta provides update on potential data center project

The City of Wapakoneta says discussions concerning a potential data center remain preliminary, with no project applications submitted and no decisions made.

City administrators issued an update after Colocation Technology Services, or CTS, expressed interest in developing what it describes as a smaller data center within Wapakoneta’s industrial park.

Officials stressed that the city has not entered negotiations with CTS, approved any portion of the project or made commitments to the development. The company has not requested annexation, conditional-use approval or any other city authorization.

The Wapakoneta Area Economic Development Council, which operates separately from the city, has been communicating with CTS. The organization works with businesses interested in locating or expanding within the community.

Wapakoneta City Council designated data centers as a conditional use in 2024, meaning a proposed facility would require additional review and approval.

The city has spent several months examining whether its existing infrastructure could support the proposed facility, which is expected to require 50 megawatts of electricity.

An initial feasibility study conducted through American Electric Power found the facility could be served without improvements to AEP’s existing infrastructure. The project would connect directly to an AEP electric line rather than receive power through Wapakoneta’s distribution system.

CTS would also purchase electricity through separate contracts with American Municipal Power. City officials say the arrangement would keep the facility’s power purchases separate from those of other local customers.

The company estimates that its proposed closed-loop cooling system would use between 5,000 and 10,000 gallons of water per day. City administrators say that amount is within the capacity of Wapakoneta’s water system, which treats more than one million gallons daily.

Wastewater would primarily be generated through normal restroom use. According to information provided by CTS, water from the cooling system would be periodically removed and disposed of off-site rather than discharged into the city’s sewer system.

CTS estimates noise at the edge of its property would be approximately 60 decibels, which the city compared with the sound level of a window air conditioner.

City officials emphasized that those estimates were provided by CTS, remain preliminary and have not all been independently verified.

If the proposal advances, administrators say additional review would be needed to ensure revenue generated by the facility covers the full cost of providing utility service without shifting expenses to other residents or businesses.

CTS plans to hold public informational meetings before submitting any development requests to the city. Dates and locations for those meetings have not yet been announced.

City officials say residents will have opportunities to learn about the proposal, ask questions and raise concerns before any decisions are made.