Gov. Mike DeWine pauses data center tax break that soared to $1.6B

Ohio Governor Mike DeWine has announced a temporary halt to a controversial sales tax exemption for new data center projects across the state. The decision follows a revelation that the tax break cost Ohio nearly $1.6 billion in 2025, significantly higher than the initial estimate of $136 million, a figure that has sparked anger and concern among lawmakers.

The pause will remain in effect while a newly formed legislative committee studies the economic and environmental impacts of data centers. State lawmakers, including Sen. Bill Blessing (R-Colerain Township), have voiced strong opposition to the tax break, citing its unjustifiable cost. House Minority Leader Dani Isaacsohn (D-Cincinnati) criticized the lack of transparency surrounding the escalating costs.

The Department of Taxation, citing taxpayer confidentiality, declined to identify specific companies that benefited from the exemption, though major tech firms like Meta, Amazon, and Google operate data centers in Ohio. While proponents argue that data centers bring economic growth and union jobs, critics highlight environmental concerns, utility strain, and question the benefits for local communities. The statewide pause reflects broader public sentiment, as Ohioans have expressed concerns at government meetings, leading some local officials to enact moratoriums on data center development. Furthermore, a grassroots effort is underway to collect signatures for a constitutional amendment to ban large data centers in the state.