Ohio suspends data center tax break as tech firms face pressure to pay the cost to power AI
The pause follows a review of tax breaks that reached nearly $1.6 billion last year, far above state projections, officials said.
- On Wednesday, Governor Mike DeWine ordered a temporary pause on new tax exemptions for data centers, effective June 1, citing the need to review the industry's rapid expansion and rising costs.
- The suspension follows a dramatic surge in tax breaks, which cost Ohio $1.5 billion last year, far exceeding the $135 million originally forecasted by state projections.
- Lawmakers expressed shock at the discrepancy; State Representative David Thomas noted lost revenue reached $1.6 billion, while State Senator Kent Smith called it "the worst tax break in Ohio's history."
- Dorsey Hager, executive secretary-treasurer of the Columbus/Central Ohio Building and Construction Trades Council, expressed concern the pause could cause developers to reconsider pending projects affecting union work.
- Residents are pushing a citizen-led referendum for November's ballot to ban hyperscale data centers, facing a July 1 deadline for more than 400,000 signatures, as the gubernatorial race between Republican Vivek Ramaswamy and Democratic nominee Amy Acton intensifies.
55 Articles
55 Articles
Ohio data center tax break suspended amid battle over paying cost for AI power
Ohio Gov. Mike DeWine (R) suspended the state’s tax exemption for new data centers, which has drawn developers of the power facilities to the Buckeye State amid the boom of artificial intelligence. DeWine, in an announcement Wednesday, said he directed the chair of the Ohio Tax Credit Authority to temporarily halt consideration of new data…
Ohio lawmakers react to $1.5 billion in unexpected data center tax breaks
Ohio lawmakers are addressing a dramatic increase in data center tax exemptions, prompting Gov. Mike DeWine to pause new exemptions and sparking bipartisan calls for permanent changes.
Ohio lawmakers begin hearings on data centers
An aerial view shows a data center situated near single-family homes. (Photo by Nathan Howard/Getty Images)Ohio lawmakers kicked off hearings for a new data center committee Wednesday. Stakeholders from the industry, utility regulation, and state agencies shared their views on data centers’ impact on the cost of power, the environment, and the economy. Taken together, the speakers sought to downplay and displace concerns about the expansion of d…
Pause on data center tax breaks generates mixed views
Staff report Gov. Mike DeWine’s order this week to pause all sales-tax exemptions for new data centers in Ohio has drawn staunch opposition and qualified support from two major state institutions. The governor on Wednesday directed the chair of the Ohio Tax Credit Authority to pause consideration of any new data center tax exemption requests while the Ohio General Assembly’s Joint Data Center Committee studies the growth of data centers in Ohio.…
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