Sherrod Brown criticizes Ohio Lt. Gov. Jon Husted on data center development
Ohio Senators Sherrod Brown and Jon Husted are debating data center development as a contentious election issue. Brown criticizes past tax breaks for data centers, citing increased electricity rates, while Husted, despite previous support, recently introduced a bill to ensure large energy users foot their grid connection costs. Governor Mike DeWine has already paused sales tax exemptions for data centers statewide.
Former Ohio Senator Sherrod Brown is challenging incumbent Senator Jon Husted in the upcoming November 3rd Special Election, with data center development in Ohio emerging as a key contentious issue. Brown recently addressed voters at an IBEW hall in Steubenville, criticizing Husted's previous role as the 'point man' for data center development.
Brown highlighted the approximately 240 data centers in operation or development in Ohio and lambasted the $2.5 billion in tax breaks granted over the past decade, stating these exemptions far exceeded expectations and led to significant revenue losses. He also argued that data centers contribute to rising electricity rates, catching communities by surprise. This criticism comes amidst bipartisan efforts at the Ohio Statehouse to repeal these tax exemptions.
Despite having pushed for data center development in the past, Senator Husted introduced the Ratepayer Protection Act last month. This proposed legislation aims to mandate that large energy users, such as data centers, cover the costs associated with connecting to the power grid, rather than passing these expenses onto families and small businesses, requiring states to collaborate with Public Utility Commissions.
Adding to the regulatory landscape, Governor Mike DeWine announced in May that he would be pausing all sales tax exemptions for data centers statewide, signaling a shift in Ohio's approach to incentivizing the industry.