Ohioans to fight against data centers at Statehouse Monday
Ohio residents are set to testify at a Statehouse committee hearing in Columbus, expressing anger over the proliferation of data centers, citing environmental and energy usage concerns. The debate also centers on significant sales-tax exemptions for data center developers, which Governor Mike DeWine recently halted for new projects after lawmakers pushed back against the financial burden on the state.
Ohio residents are preparing to voice their strong opposition to the increasing number of data centers at a Select Committee on Data Centers hearing this Monday at the Statehouse in Columbus. This follows widespread public outcry and protests across the state, with residents like Katie O'Neill from Madison Township criticizing data centers for consuming farmland and nurseries.
The growing concern is fueled by environmental and energy usage issues, along with the substantial financial burden imposed by sales-tax exemptions. News 5 and Signal Ohio's investigation revealed that Ohio granted nearly $1.57 billion in sales-tax exemptions last year for data center equipment and construction, almost 12 times the initial estimate. Additionally, local sales-tax breaks amounted to $446.3 million.
House Speaker Matt Huffman (R-Lima) has been a vocal opponent of these tax breaks, advocating for their elimination, a move vetoed by Governor Mike DeWine in the last budget. However, following media reports and legislative pressure, Governor DeWine has since instructed Ohio’s tax credit authority to pause considering new sales-tax break requests while the committee studies the industry. The bipartisan committee plans to investigate data centers' impact on energy bills, community financial benefits, water and wildlife, national security risks, and public awareness. Dan Diorio, representing a coalition of data center developers, argues these facilities are essential for innovation and economic growth, a view supported by some union leaders.