< Previous136 MAY 2025 SITE SELECTION manufacturing. By necessity, we are a persistent, roll-up-the-sleeves culture. I came to the state as a member of a military family. I served in California. We came back here because we appreciate the value proposition Ohio offers.” Nauseef took over as head of JobsOhio in March 2019. The state has been on a roll since. In 2024, Ohio finished No. 3 in the nation in the Site Selection Governor’s Cup competition for the third year in a row. In 2020 and 2021, Ohio placed second. One of the projects that helped Ohio qualify for its elite ranking was the recent SNC expansion in Dayton. SNC won a $13 billion U.S. Air Force contract to modernize and deliver a replacement for the current fleet of E-4B Nightwatch aircraft, a highly specialized airplane that serves as a “survivable airborne command center” (SAOC) for the president of the United States, the secretary of defense and the chairs of the Joint Chiefs of Staff. The purpose of the airplane is to ensure continuity of command during a national emergency. In colloquial parlance, this aircraft is known as the “Doomsday Plane.” Whether building power transformers or hardened aircraft, Ohio’s factory base is robust and built for the long term. According to a report from the Ohio Manufacturers Association, manufacturing is responsible for 17.5% of state GDP and generates an annual payroll of $48 billion, making factory work the No. 1 job in the state. As of November 2022, Ohio ranked third in the U.S. in total manufacturing employees, at around 689,900 — behind only California and Texas. As of the third quarter of 2023, Ohio’s manufacturing GDP was $133.2 billion, placing Ohio fourth in the country. Younger Workers Moving to Ohio Recent migration data point to a strong likelihood that manufacturing BrewDog brewery in Fairfield, Ohio, is an FDI project out of Scotland. Photo courtesy of One Columbusrecovery in Ohio will last a good while longer. It starts with workforce, and on that count, Ohio is outpacing the nation in its ability to attract younger, highly skilled workers. Hamilton Lombard, a researcher at the Weldon Cooper Center for Public Service at the University of Virginia, analyzed the migration patterns of 25-to-44-year-olds across the country from 2010 to 2023 and discovered some interesting findings in the Midwest. “In some ways, Ohio has followed a similar trajectory as Michigan, shifting from losing the fourth largest number of 25-to-44-year-olds in the first three years of the 2010s to gaining the 10th largest number of 25-to-44-year-olds in the first three years of the 2020s — a larger gain than Utah, Nevada or Michigan,” Lombard wrote in his analysis. Moreover, these population gains are not confined to big cities. “Ohio has seen migration turn positive for many of its smaller cities and towns, including Ashtabula, Canton and Steubenville, after decades of out-migration,” Lombard notes. “Manufacturing employment has risen slightly in recent years after decades of losses in Ohio, while employment in transportation and warehousing has risen faster than in the rest of the U.S.” Lombard adds that, since 2010, growth in the 25-to-44 age group “has become much more widespread in Ohio. During the first three years of the 2020s, the combined growth in Cleveland, Akron and Youngstown’s 25-to-44 population was close to the increase in Columbus’s 25-to-44 population. Columbus continues to be a significant source of growth, but it is growing more slowly with most of its growth concentrated in its outer counties.” Other key findings:138 MAY 2025 SITE SELECTION • In 2013, 22 of Ohio’s 88 counties were attracting more residents from other parts of the country than they were losing. In 2023, that number had risen to 56, up from 51 in 2022 and 49 in 2021. • During the first three years of the 2010s, Ohio’s 25-to-44 population fell in 81 of its 88 counties. Since 2020, it has fallen in just 24 counties. • Total domestic migration for Ohio remains negative, due to retirees continuing to leave, but the state’s loss in population to other states is currently the lowest number in decades and significantly smaller than before the pandemic. • The 25-to-44 population has grown in 26 of Ohio’s 36 manufacturing-dependent counties since 2020, up from only three counties showing growth in that age group during the first three years of the 2010s. For companies looking to grow and needing experienced millennials and Gen Z workers to fill the new jobs, the Buckeye State is calling. SafeLite Auto Glass continues to grow its workforce and invest in its headquarters in Columbus. Photo courtesy of One Columbus SITE SELECTION MAY 2025 139 Data Centers Are Increasing In The Great Lakes At What Cost? e following analysis by Helena Volzer, senior source water policy manager at the Alliance for the Great Lakes, appeared March on the nonprofi t organization’s website greatlakes.org. Used with permission, the article has been slightly edited for space considerations. A question looms for the Great Lakes: With our water protected from diversion to far- fl ung locales, are we equally ready for an infl ux of big new water users here at home? e Great Lakes hold the world’s largest supply of surface freshwater. It is a truly massive amount of water — but also a fi nite resource that must be managed responsibly for today and tomorrow. e eight Great Lakes states and two Canadian provinces wisely recognized this when they agreed to the Great Lakes-St. Lawrence River Basin Water Resources Compact and provincial Agreement. e Compact and Agreement do four things: • Prohibit diversions of Great Lakes water (with limited exceptions); • Require the states to manage their own Great Lakes water use within the Basin; • Set water conservation and effi ciency goals and objectives; and • Establish common water use reporting protocols. e Compact’s prohibition on diversions ensures that Great Lakes water stays in the Great Lakes Basin. Proposals to pipe Great Lakes water for any use to a location far outside the region are legally not in the cards — the Compact prohibits it. Any exception to the diversion prohibition can happen only in a county that is partially in the Basin, and the water must be returned after use. Beyond the legal constraints, moving vast amounts of Great Lakes water away from our region makes no economic or logistic sense. e good news is this means that Great Lakes water stays in the Great Lakes. But our abundance also makes the Great Lakes region attractive to industries that require large amounts of water. THE GREAT LAKES by HELENA VOLZER editor@siteselection.com Photo: Getty Images140 MAY 2025 SITE SELECTION Unprecedented Demand Historically, this meant steel production, petroleum refining, agriculture, and power generation. Today’s growth industries look somewhat different. The rapid growth of digital consumption of generative artificial intelligence (gen AI), cloud computing, internet of things and digital services is driving an unprecedented demand for new data centers. Hyperscale data centers can take up over 10,000 sq. ft. of floor space and house over 5,000 servers that demand water and electricity 24 hours a day. How much water a data center needs varies depending on the size and type of cooling technology used, but hyperscale data centers can use between 1 million and 5 million gallons of water per day (MGD) when evaporative cooling, currently the most common method, is used. To put this in perspective, a hyperscale data center that uses 365 million gallons in a year (or 1 MGD) is equivalent to what roughly 12,000 Americans use in a year. Most of the water used in evaporative cooling is used consumptively — the water is not returned to the watershed, but rather, lost to evaporation. The increased pace of this consumption is also alarming. A new report shows that in 2023, U.S. data centers directly consumed about 17.4 billion gallons of water, and the authors expect that figure to double by 2028. Yet only 1% of the water in the Great Lakes is renewed each year, underscoring the hard choices and complex planning that goes into keeping sustainable amounts of water available. Generating electricity to meet data centers’ needs via coal, natural gas or nuclear-fired power plants also requires water. Some refer to this relationship between water and energy generation as part of the “water-energy nexus.” Per the Great Lakes Regional Water Use Database, 70% of Great Lakes reported water use in 2023 was associated with generating electrical power. That’s overall water use (not the percentage of consumptive use), and that percentage generally matches each state’s water use as well. Because the electric utility is the entity that reports its water use and corresponding consumptive use to the Database, we don’t have a clear understanding of what the total water footprint of an individual data center or the data center industry is. New research also shows that it’s taken just four years for the total capacity of hyperscale data centers (megawatts of load a data center can handle) to double, while both the number of facilities and average capacity rapidly climb. To meet the demand on existing power grids, states will have to add capacity while also meeting state renewable energy targets. In some states, that may necessitate reactivating or expanding nuclear power plants. That’s already happening in Michigan (Palisades), New York (Three Mile Island), and Ontario (Bruce). In others like Ohio, it’s driving the construction of new natural gas plants. The corresponding increase in the cumulative use of water by data centers — both in their indirect energy needs and direct cooling needs — must be better quantified and understood. Transparency Is Key It’s estimated that less than one-third of data centers are currently tracking water usage. In the Great Lakes states, when a large water user obtains its water through a municipal water system that has the capacity to supply it, the obligation to track and report water usage rests with that system — not the water user. Without information about what a data center proposes to use up front and reporting to determine how much water is being used, it’s not possible to fully understand and assess the impact of an individual data center or any large water using industry on a water resource. Better accounting and reporting requirements are needed to guide decision making and protect water resources. At the same time, state legislatures, economic development agencies and local governments are inviting data centers to locate in the Great Lakes region with tax incentives and other benefits packages. But when decisions are being made about where to incentivize development, water doesn’t appear to be holistically factored into the equation. That can and should change as states (like Ohio and Indiana) are undertaking studies to better understand water demand and capacity. If not, states may max out an area with data centers and not have the capacity to handle any other type of growth or 70% of Great Lakes reported water use in 2023 was associated with generating electrical power. SITE SELECTION MAY 2025 141 economic development. Without careful planning, it could also have unintended consequences like depleting groundwater availability in existing private drinking water wells and wells used for agricultural irrigation. A data center can employ from as few as 10 to more than 100 people, depending on its size — but supports 6.5 jobs for every one job directly employed. If data centers turn out to be the economic development engine they have been touted as, then that may drive population growth, further increasing the demand for both water and electricity. For example, the Columbus, Ohio, metropolitan area, where data centers are being constructed at a very rapid rate, was the fastest growing city in the U.S. for the second half of 2023. Climate Change Is Scrambling Assumptions Climate change impacts on surface and groundwater supplies compound these issues and underscore the need for detailed planning and informed resource management. State laws and regulations are currently not designed to proactively manage water resources in anticipation of how climate change will reshape surface and groundwater flows, large scale water uses and population patterns. This is especially true for groundwater. While the majestic surface waters of the Great Lakes are prominent in the minds of many, between 40-75% of Great Lakes state residents get their drinking water from groundwater — much of it connected to the Great Lakes. States should be examining all large-scale water uses of groundwater, including for data centers, to determine whether they’re appropriate in a given watershed or basin and whether those uses pose enough of a threat to other nearby watersheds that the use should be avoided altogether. As climate change continues to dramatically alter precipitation patterns, laws will also need to change and adapt in concert to ensure there’s enough water to support economic development and protect our most precious shared freshwater resource, the Great Lakes. F rom breakfast to bedtime, Kentucky fuels more of your day than you might think. at golden Pop-Tart you grabbed on your way out the door? Baked in a Kellogg’s plant in Pikeville. e Ford or Toyota parked in your driveway? ere’s a good chance it was made in Kentucky. And when the sun dips low and you pour a glass of bourbon? Well, you’re more than likely sipping on a little taste of Bluegrass in a bottle. For decades, Kentucky has been the hand behind some of America’s most beloved brands, cranking out comfort foods and quality-of-life staples with consistency. Even when their factories aren’t in the headlines, their products are making it into homes across the country. From the unmistakable taste of Jif peanut butter to the reliable hum of GE by LINDSAY LOPP editor@siteselection.com Kentucky STATE SPOTLIGHT Maker’s Mark, the bourbon distillery based in Loretto, Kentucky, says its Wood Finishing Series, The Keepers Release 2025 is inspired by the warehouse team who “ensure every barrel of Maker’s Mark matures consistently to the founders’ taste vision.” Image courtesy of Maker’s Mark 142 MAY 2025 SITE SELECTION Kentucky-Made Makes a Diff erence e state behind your everyday staples SITE SELECTION MAY 2025 143 Appliances, Kentucky’s impact is felt every day, often without you even realizing it. It’s not hard to see why Kentucky’s manufacturing legacy is expanding. e state’s ability to produce everything from food to tech is drawing in new businesses eager to join in on the success. Kentucky’s appeal is refl ected in its recent recognition in Site Selection’s Governor’s Cup rankings, where Kentucky earned a top fi ve spot for economic development projects per capita. With major expansion projects announced in alone, Kentucky continues to solidify its place as a hub for industry growth. Ranking second in the South Central region for regional projects per capita and third for total projects, Kentucky’s diverse manufacturing landscape is attracting businesses from a range of sectors. And this rapid growth shows no signs of slowing down. In fact, is already shaping up to be another big year, with new projects popping up left and right, steadily extending the list of must-have Kentucky- made products. A Fresh Start In a signifi cant boost to Kentucky’s growing reputation as a hub for innovation and sustainability, Earth Breeze, a producer of environmentally friendly laundry detergent sheets, announced in February plans to invest $. million into a new production facility in Harrodsburg, located outside Lexington. e new ,-sq.-ft. facility will handle all stages of production, from blending Earth Breeze’s eco-friendly formulation to cutting, packaging and order fulfi llment. erefore, the new jobs are also expected 144 MAY 2025 SITE SELECTION to span multiple departments, from production operators to quality control specialists and facility managers, off ering opportunities for workers of various skill levels. “We are incredibly grateful to the state of Kentucky for their outstanding support and partnership throughout this journey,” said Ben Smith, COO of Earth Breeze. “From the very beginning, the state has demonstrated a clear commitment to fostering growth and innovation, helping us navigate every step with care and effi ciency. Kentucky’s strong workforce, business-friendly environment and collaborative spirit have made it the perfect home for Earth Breeze. is investment is not just about expanding our operations — it’s about building a sustainable future together with the Harrodsburg community. We are excited to bring new opportunities, create quality jobs and be part of Kentucky’s continued economic success.” Founded in , Earth Breeze has quickly made a name for itself with its BY THE NUMBERS KENTUCKY Higher Ed. R&D Expenditure in $000s: 725,709 Number of NCRCs: 171,092 | Percent Improved 2023–24: 1.09% Business Tax Climate Rank Change 2024–2025: -4 Industrial power cost per kWh: $6.55 Total Rev. as Share of Total Expenses, FY 2008-22: 102.09% 2024 Workers’ Comp Index Rate: 0.86 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M Toyota Motor Manufacturing Georgetown 922 Shelbyville Battery Manufacturing Shelbyville 712 Repkon USA Graham 435 Ford Motor Co. Shelbyville 400 Canadian Solar Shelbyville 384 Source: Conway Projects Database From refrigerators to dishwashers, GE Appliances is among the many companies manufacturing everyday essentials in Kentucky. Image courtesy of GE Appliances SITE SELECTION MAY 2025 145 innovative laundry detergent sheets, free of harsh chemicals commonly found in traditional liquid detergents such as parabens, artificial dyes and optical brighteners. They offer a convenient and environmentally friendly alternative that reduces plastic waste, aligning with growing consumer demand for sustainable products. In addition to its commitment to sustainability, Earth Breeze is also deeply dedicated to giving back to communities in need. For every order placed, the company donates laundry detergent to shelters and disaster relief organizations, having provided over 300 million loads of detergent to more than 800 shelters and community groups. Additionally, Earth Breeze has sponsored the cleanup of over 999,000 pounds of plastic, furthering its dedication to environmental sustainability. As the company grows in Harrodsburg, its efforts to support both communities in need and the environment figure to leave their mark in Kentucky. Owensboro’s Not-So-Secret Ingredient It’s not just newcomers that are making waves in Kentucky’s manufacturing scene. Companies that have already planted roots here are constantly evolving and expanding too. Half a world away from its headquarters in Japan, Mizkan America has spent the last five decades building something special in Owensboro. What began as an international expansion became a local success story, with the food company growing side-by-side with the community. Now, 50 years in, Mizkan is once again investing in the place it has long considered home. On March 17, the company broke Next >