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Waterford resident calls for a trustee to step down in light of a data center development
By: Amanda Pirani
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WASHINGTON COUNTY, Ohio (WOUB/Report for America) — Karl Bogard was never one to get involved in local politics.
He did his part reading the newspaper, staying informed on issues and voting come election day.
Then word spread that his county commissioners signed a letter of intent to negotiate with data center developers in Waterford township, where he lives.
After hearing the news, Bogard attended his first township meeting to see what his trustees knew about the situation.
“It was funny, when we got there the township trustees had two chairs set out,” he said. “They said, ‘I’ve been here for years, and nobody’s ever come to a trustee meeting.’”
The proposal has changed dynamics in the small community, which has a population of 3,500.
Residents formed a Facebook group to share information about the development, where they also debate the data center’s economic prospects, public health and the necessity of artificial intelligence.
Efforts to learn more about the data center have also led to questions about who’s to blame if a development goes forward. Bogard said public officials are facing new skepticism.
He’s one of several calling for a township trustee to step down from his position or be removed from office. The trustee has allegedly received an offer on his land from the data center developers.
Some say those opposing the data center are going too far. Resident Jay Owens believes they’re upset they couldn’t stop the development, or in some cases, didn’t receive the same offers as their neighbors.
“The community, I think, has been fractured by some people who didn’t get their way, and they’re jealous,” he said.
Statewide, data center proposals are shaking up small communities like Waterford and reshaping local politics. Public officials are resigning, while others are running in November on a platform of opposition to data centers.
And while proponents of the developments argue people like Bogard are a vocal minority, primary elections have already seen candidates like Washington County Commissioner Eddie Place ousted in the face of backlash.
Public records reveal some details about data center
Washington County residents first learned they might see a data center development at the start of this year.
While few details have been shared by public officials, public records describe a potential 200-megawatt data center for cryptocurrency mining and high-performance computing, including artificial intelligence.
The development could also include a substation, according to a ground lease document.
While it’s not clear exactly who would own the data center, the limited liability companies leasing the land are tied to Sabre 56 and Cipher Digital. Company HashWorks Powered Land Waterford LLC also owns just over 500 acres near the leased industrial area.
The company appears to be an investment firm involved in “opportunities at the convergence of energy transition and the need for digital computing infrastructure,” according to its LinkedIn.
A Waterford resident confirmed for WOUB on background that the company made an offer on their land for a data center development and shared a letter of intent to purchase from HashWorks.
Sabre 56 appears to be a consulting firm that assists in building and operating data centers. It’s involved with two other data center projects in Ohio.
Cipher Digital’s website states it helps companies like Google and Amazon develop hyperscale data centers.
In March, HashWorks Powered Land Waterford LLC made a surface water withdrawal request for the maximum capacity of 25 million gallons per day.
That’s the maximum amount a facility could withdraw but doesn’t necessarily represent actual water use. That withdrawal request could be for a data center, or for a substation that would power a data center.
As with other data center developments in the region, there is little information available regarding the potential impacts to local utilities like electricity and water because of a nondisclosure agreement.
Waterford resident calls for trustee to step down
Residents searching for more information have organized, keeping track of where they believe the data center will be located and who’s said to have received an offer for their property.
He’s one of several residents who believes the trustee, Doug McCutcheon, should step down because of an alleged conflict of interest.
Bogard claims McCutcheon has been given an offer on his land and stands to profit substantially from the data center.
“He said, ‘When they talk about that I just don’t participate in the conversation, I don’t vote.’ Well that’s moot,” he said. “You can’t sit as a trustee in that capacity and make decisions for the town if you’re involved in the sale. That’s a conflict.”
Now Bogard is circulating a petition to remove McCutcheon from his position.
In Ohio, township trustees can be removed for “misconduct in office” through a process called a complaint and hearing.
First, Bogard has to circulate a complaint gathering the same number of signatures as 15% of those who voted in the last gubernatorial election. Those signatures must be from people who are registered voters in Waterford township.
Once the complaint is filed with the necessary signatures, a hearing is scheduled in the court of common pleas. A judge will make the final decision regarding the complaint unless a request for a jury is made.
If Bogard succeeds, McCutcheon’s co-trustees would be required to select an interim replacement.
WOUB made several attempts to contact McCutcheon, who did not respond to interview requests.
County auditors’ records show he owns over 100 acres near the potential data center site. If given an offer at even half the rate of one shared with WOUB by a Waterford resident, he would stand to become a multimillionaire.
Bogard said that while McCutcheon has the right to sell his land, he believes it influenced decisions not to pursue zoning or a data center moratorium.
Those who know McCutcheon say claims he’s acted improperly are an unfair attack on his character.
Trustees have limited tools to stop development
Jay Owens, a Waterford resident, argued that those upset with McCutcheon don’t understand what steps trustees have the power to take in response to a data center.
“They think a township trustee can just shut this thing down just because they don’t like it,” he said.
Owens correctly pointed out that without zoning, township trustees are limited in the actions they can take. Even in a township with zoning, trustees can’t outright shut a development down — but zoning does give them more say on how one takes place.
However, Bogard is also right that trustees have the authority to pursue zoning or a data center moratorium, as many other townships facing data center developments have done.
If a development is farther along, it would likely have to be grandfathered into a moratorium or zoning.
Township trustees do have a say in the negotiations of any tax abatements for a development in their area.
While county commissioners are the body that approves tax abatements, there are several steps commissioners must take in that process.
It includes creating a tax incentive review council for any community reinvestment area, enterprise zone agreement and tax increment financing projects (those are just terms for different tax incentives).
The review council must include two affected township trustees. So in the case of Waterford, and other townships where data centers might go, township trustees should have some say in negotiations.
County commissioner in support of data center loses May primary
Commissioners in Scioto, Adams and Brown counties have faced similar criticism.
Washington Commissioner Charlie Schilling said signing one was necessary to having a seat at the negotiating table.
“I signed an NDA so I could take the concerns of the community, and address them within a development agreement,” he said.
Commissioners have said to those opposing the data center that they have no authority to stop a development and are in support of the project because of its economic potential.
Their letter of intent states they will consider a 100% tax abatement in combination with a payment in lieu of taxes.
A bill in the statehouse would prohibit county commissioners, township trustees and village public officials from signing NDAs. It has remained in committee since February.
During a commissioners’ meeting May 14, Commissioner Eddie Place said no deal has been reached at this time.
“There might not even be an agreement,” he said. “I’m hoping they come to us, but that’s not a guarantee.”
Place lost his primary election to former Ft. Frye school board member Stephanie Lang despite receiving an endorsement from the county GOP.
He received criticism for both his support of the data center development and a decision not to sign a moratorium on injection wells in the county. His fellow commissioners also chose not to sign the moratorium.
Lang ran on a platform critical of the data center development, supported a moratorium on out-of-state injection well brine and advocated for eliminating property taxes.
During a county commissioner’s meeting May 21, county resident George Banziger said he believes the election loss was the result of the commissions’ actions on the data center and injection wells.
“With respect to data centers, I think, and I think others would agree, that the nondisclosure agreement that the commissioners embarked upon was ill-advised,” Banziger said. “I think the voters have commented on that in the ballot box.”
Amanda Pirani is WOUB’s Report for America Journalist covering Economic Livelihood. For more information about Report for America, you can click here.
Update (6/1/2026 2:52 PM): This story was updated to reflect the purchase of over 500 acres of land by HashWorks Powered Land Waterford LLC.