Gov. DeWine says data centers are the 'future' but they should 'pay their own way'
Ohio Governor Mike DeWine addressed ongoing debates about data center development, urging local governments to negotiate favorable terms. His comments followed a statewide pause on data center tax exemptions and amidst local moratorium considerations. Notably, Cleveland recently denied a permit for a hyperscale data center project.
Ohio Governor Mike DeWine recently commented on the controversial topic of data center development across the state, encouraging local leaders to negotiate favorable deals rather than completely rejecting such projects. While acknowledging the economic advantages, DeWine stressed that data centers must "pay their own way" to avoid burdening consumers with rising energy costs.
These remarks follow DeWine's announcement last month of a temporary pause on Ohio's data center tax exemption. He indicated that the pause would allow time for reassessment, suggesting incentives could be reinstated later if needed. The governor also referenced a recent Brookings Institution study that found data centers contribute to local job growth, particularly in construction and the information sector.
DeWine's statements coincided with a legislative attempt by Ohio lawmakers to introduce a comprehensive bill addressing public concerns and further curtailing incentives for data centers; however, this bill ultimately collapsed in the House. Meanwhile, local communities continue to grapple with data center proposals, with Cleveland specifically considering a one-year moratorium on new facilities. Cleveland officials recently denied a permit for what would have been the city's first hyperscale data center, with Mayor Justin Bibb expressing a stronger stance against standalone data centers in dense urban areas.