$1.5B Data Center Campus Turns Ohio Paper Mill Into AI Hub: 350+ New Jobs

For Proptech professionals, the Chillicothe project is a live laboratory of adaptive reuse at the intersection of data infrastructure and real estate. As AI drives hyperscale demand, site-selection algorithms are directing capital to unconventional locations like this Ohio mill town, where existing power and water infrastructure lower barriers to entry. The deal structure—multiple specialized tenants coordinated by a new ownership entity—also tests the viability of mixed-tech industrial campuses, a trend that could reshape commercial real estate valuation models. Every component from environmental remediation to power grid upgrades will require data-driven property technology solutions, making this a bellwether for the sector.

The former Pixelle Specialty Solutions paper mill in Chillicothe, Ohio, a site that once employed 800 workers, is set for a dramatic transformation into a multi-tenant industrial campus backed by an estimated $1.5 billion in investment. The U.S. Paper Mill Company LLC, which now owns the shuttered facility, announced plans through the Chillicothe Chamber of Commerce to bring in four key tenants: a high-performance computing data center operated by Aligned, an amphibious airplane manufacturing operation by Amphibian Aerospace Industries, a medical glove production facility by U.S. Medical Glove Company, and a packaging operation by U.S. Box Company. This repurposing of a legacy heavy-industrial site into a technology-forward hub underscores broader economic trends: the adaptive reuse of decommissioned manufacturing plants, the rapid expansion of AI-driven data center infrastructure in non-traditional markets, and the reshoring of critical supply chain manufacturing. For a small city like Chillicothe, which lost its largest employer when the paper mill closed in 2025, the promise of hundreds of new jobs and long-term capital investment is a critical economic lifeline.

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The former Pixelle Specialty Solutions paper mill in Chillicothe, Ohio, a site that once employed 800 workers, is set for a dramatic transformation into a multi-tenant industrial campus backed by an estimated $1.5 billion in investment.

The data center component is particularly significant. Aligned, a major data center developer, plans to deploy advanced semiconductor hardware and technology from AMD, creating what it describes as a high-performance computing campus that will serve as a strategic hub for artificial intelligence workloads. This bears the hallmarks of a burgeoning trend: AI and cloud computing demand is driving data center construction into areas with available power, water, and industrial land—often far from traditional data center clusters like Northern Virginia. Chillicothe, with its existing utility infrastructure from the paper mill, offers a compelling site. The inclusion of AMD technology suggests a focus on GPU-accelerated computing, a market that has seen explosive growth due to generative AI. The project positions southern Ohio as an emerging player in the digital infrastructure landscape.

Simultaneously, the amphibious aircraft manufacturer Amphibian Aerospace Industries plans to create 150 to 200 direct advanced manufacturing jobs and over 500 indirect supply chain jobs. This aerospace injection diversifies the local economy well beyond paper production, offering higher-skilled roles and linkage to global aircraft markets. The U.S. Medical Glove Company, which had previously announced its intent to operate there, is expected to add a further 150 permanent jobs, addressing domestic shortages in medical supplies that became glaring during the pandemic. Together, these tenants could replace the 800 lost paper mill jobs with a more resilient, diversified employment base.

From a real estate and economic development perspective, the $1.5 billion figure is notable. While that sum is described as an anticipated investment, and specifics on funding sources or timelines remain unclear, it signals serious intent from the ownership consortium. The fact that the announcement came through the Chamber of Commerce adds a layer of local governmental endorsement but also raises questions about any public incentives being negotiated. The adaptive reuse of industrial brownfields often entails environmental remediation costs, tax abatements, and infrastructure upgrades that can complicate returns on investment. However, the combination of data center demand and onshoring trends bodes well.