DeWine: Ohio data center tax break is for next governor to decide on

Ohio Governor Mike DeWine has announced that a statewide sales and use tax break for new data center construction will remain frozen until next year, effectively leaving the decision to his successor. DeWine stated the break would continue in its current state until he leaves office, emphasizing the ongoing debate over data centers as a major election issue.

Just two months prior, an attempt to introduce new regulations for data centers failed in the legislature. The proposed bill, House Bill 646, aimed to establish a distinct electric rate class for data centers, cap local tax abatements at 50%, and regulate their water usage and discharges. However, disagreements among House members regarding the extension of the sales and use tax break ultimately halted negotiations, and the amended bill is unlikely to progress before the November election.

Both gubernatorial candidates are now outlining their plans for data center policy. Republican nominee Vivek Ramaswamy proposes that new data centers should cover not only their own electricity costs but also provide credits or reimbursements to nearby residential consumers. He also advocates for eliminating local property tax abatements, redirecting the revenue to direct homeowner rebates, asserting a "pro-Ohio" stance rather than a "pro-data center" one.

Democratic nominee Amy Acton has called for a conditional moratorium on new data center construction. Her conditions include requirements for data centers to cover their own costs, utilize union labor, and prioritize brownfield sites over farmland. An Acton spokesperson criticized Ramaswamy's proposals as a "scam" designed to divert attention from his past record and investments related to data centers. The implementation of either candidate's proposals would necessitate legislative involvement.