Daily Digest — May 29, 2026
Ohio Suspends Data Center Tax Exemption as Legislative Hearings Begin
Ohio Governor Mike DeWine has announced an immediate pause on granting the state's sales tax exemption for new data center applicants, according to ABC News. The tax break's utilization reached nearly $1.6 billion in 2025, far exceeding initial projections. The governor's office cited rising costs and a newly formed legislative committee studying data center impacts as the rationale for the suspension.
Concurrently, a citizen-led initiative is gathering over 400,000 signatures by a July 1 deadline to place a referendum on the November ballot that would implement a permanent statewide ban on hyperscale data centers, as reported by ABC News. Ohio lawmakers have also begun formal hearings on data center development, according to the Ohio Capital Journal. Dorsey Hager of the Columbus/Central Ohio Building and Construction Trades Council expressed concern the pause could deter developers, while State Rep. Adam Holmes acknowledged data centers have become a priority issue for lawmakers.
Ohio suspends data center tax break as tech firms face pressure to pay the cost to power AI - ABC News
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Ohio lawmakers begin hearings on data centers
Ohio Capital Journal
DeWine announces pause of Ohio's data center tax exemption
WCPO 9
Ohio suspends data center tax break as tech firms face pressure to pay the cost to power AI
News4JAX
DeWine orders data center tax exemption pause
WBNS 10TV
Hill County, Texas Faces $100M Lawsuit Over Data Center Moratorium
Data center developer RCM Hill, LLC has filed a $100 million lawsuit against Hill County, Judge Shane Brassell, and two commissioners after the Commissioners Court approved a one-year moratorium on new data center construction, according to KXXV and KCENTV. The moratorium vote ended in a tie and was decided by Judge Brassell. County leaders said the pause was needed to study impacts on water, electricity, and infrastructure.
RCM Hill claims it spent over 16 months and nearly $1 million planning an 800-acre project near Hillsboro and argues the moratorium is illegal and unconstitutional, violating property, contract, development, and due process rights. As reported by KCENTV, County Attorney David Holmes reportedly advised during the public meeting that Texas law typically grants moratorium authority to municipalities, not counties. The company is seeking to have the moratorium declared null and void, citing potential harm to ERCOT approval deadlines.
Local residents have voiced support for the moratorium. Commissioners are scheduled to meet today, May 29.
Hill County residents react to $100 million lawsuit filed against county judge, commissioners
KXXV
Hill County being sued over data center moratorium
KCENTV.com
Hill County and three members of the Commissioners Court face lawsuit over data center moratorium
KCENNews
Company sues Hill County over data center moratorium
KCENNews
Jackson, Mississippi Data Center Protests Escalate With Threats Against Officials
Dozens of residents protested a proposed rezoning for a data center in Northwest Jackson at a Planning Board meeting, leading to heightened tensions and allegations of threats against elected officials, according to WLBT and WAPT. Jackson police were called to the scene after a community activist posted a video urging residents to make council members "uncomfortable." Council President Brian Grizzell called for civil dialogue over "reckless behavior and threats."
The Jackson City Council had tabled a proposed moratorium on data centers because the city attorney advised it constituted a zoning ordinance requiring a public hearing. Saxum Investment Group LLC, the New Jersey-based company behind the rezoning request for 190 acres along Forest Avenue Extension, has asked to postpone its rezoning vote to facilitate community engagement, as reported by WLBT.
Key upcoming dates:
- **June 22**: Public hearing on data centers at Jackson City Hall
- **June 24**: Rezoning request expected to come before the council
Indianapolis Clergy Coalition Opposes Metrobloks Data Center, Files Legal Challenge
The Black Church Coalition in Indianapolis is demanding a halt to city incentives for the Metrobloks data center project in the Martindale-Brightwood neighborhood, according to WTHR and WRTV. The proposed 150,000-square-foot, 70-foot-high facility cleared all city legislative approval hurdles after the Metropolitan Development Commission approved rezoning on April 1, despite heavy public opposition.
Clergy leaders cite concerns over rising utility costs, noise, visual impact, and the use of public funds for incentives. Pastor Fitz Lyons Jr. has questioned the value of a potential $20 million investment in affordable housing and infrastructure offered by Metrobloks, while Councilmember Ron Gibson has described the project as a "done deal" and is negotiating tax abatements. Coalition leaders report Mayor Joe Hogsett has denied multiple meeting requests. Opponents have filed a civil complaint seeking judicial review of the zoning approval, alongside the Hoosier Environmental Council, as reported by WRTV.
Separately, the City-County Council's Ethics Committee voted 4-1 to advance a proposal removing councilors' home addresses from ethics forms, prompted by a shooting at Councilor Gibson's home following his support for the data center, according to WFYI.
Indianapolis clergy oppose Metrobloks data center, file civil complaint
WTHR
Black Church Coalition demands halt to incentives for data centers
WRTV
Clergy in Martindale-Brightwood neighborhood demand meeting with Mayor Hogsett regarding data center
WTHR
Indianapolis church coalition demands halt to incentives for Metrobloks data center
WISH-TV
Proposal would remove councilors’ home addresses from ethics forms after shooting
WFYI
Box Elder County, Utah Rejects Data Center Referendum; Legal Action Planned
Box Elder County has rejected a referendum application that would have allowed residents to vote on the approval of a hyperscale data center project, according to The Salt Lake Tribune. The county attorney determined the referendum was not legally referable to voters, despite opponents saying it met state legal standards.
The Box Elder Accountability Referendum (BEAR) group plans to take legal action against the county's decision.
