Ohio Suspends Data Center Tax Break After Cost Jumps to $1.6 Billion as AI Power Demand Surges
Updated
Updated · The Associated Press · May 29
Ohio Suspends Data Center Tax Break After Cost Jumps to $1.6 Billion as AI Power Demand Surges
7 articles · Updated · The Associated Press · May 29
Ohio halted its data center tax break for new applicants after the exemption ballooned from a projected $142 million in fiscal 2026 to nearly $1.6 billion in 2025.
Gov. Mike DeWine’s office said the pause reflects rising use of the incentive, a new legislative study of data centers’ economic and environmental impact, and mounting pressure for tech firms to bear more AI-related power costs.
The move lands as local opposition spreads across Ohio, where activists are seeking more than 400,000 signatures by July 1 for a November ballot measure that would permanently ban new hyperscale data centers.
Business groups and labor unions warned the pause could push projects to rival states, even as DeWine defended roughly $37 billion in Ohio data center investment in 2024 and 2025.
Ohio joins a broader state backlash against data center subsidies: 38 states offer such breaks, while Virginia lawmakers are also fighting over a roughly $1.6 billion annual exemption.
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Ohio Suspends Data Center Tax Breaks After $27.2 Billion Investment: Weighing Economic Gains Against Environmental and Community Costs
Overview
Ohio has paused new tax breaks for data centers while a state committee studies their rapid growth and impact. Governor DeWine clarified this is not a ban, stressing the importance of data centers to Ohio’s economy and distinguishing the move from stricter actions in other states. The suspension highlights growing political and public debate, as a citizen group pushes for a ballot amendment that could restrict large data centers. This reflects rising concerns about the economic, environmental, and community effects of data center expansion, prompting Ohio to reconsider its approach and seek a better balance for the future.