Published 12 hours ago • loading... • Updated 8 hours ago
DeWine Pauses New Data Center Tax Exemption Requests in Ohio
The pause follows a review of data center growth after state tax exemptions reached nearly $1.6 billion last year, officials said.
On Wednesday, Gov. Mike DeWine announced Ohio is pausing consideration of tax exemptions for any new data centers as state lawmakers examine industry growth. The Ohio Tax Credit Authority will stop accepting new exemption proposals after its scheduled Monday meeting, though existing requests remain eligible.
Reporting by News 5 and Signal Ohio revealed the state provided almost $1.57 billion in sales-tax exemptions for data center equipment last year, nearly 12 times what officials initially expected in late 2024. Community backlash in Clinton County, Butler County and Adams County intensified pressure on the administration.
Data center companies reported just over $27 billion in capital investments last year, which DeWine called "a critical component to today's technology-driven economy." Local tax breaks added another $446.3 million in foregone revenue, according to Ohio Department of Taxation calculations.
The Joint Data Center Committee held its first hearing Wednesday while existing sales-tax exemptions for Amazon, Google, Microsoft and Meta remain in effect. The Ohio Tax Credit Authority will still consider one pending request at its June 1 meeting.
DeWine framed the pause as temporary, stating "I fully support the Ohio General Assembly's work to study the issue and bring forward facts about data centers, including the local benefits to communities when tax exemptions are granted." The suspension allows Ohio to reassess incentive structures without abandoning the sector.