Ohio US Sen. Bernie Moreno calls for end to data center subsidies
Ohio US Senator Bernie Moreno is advocating for an end to taxpayer subsidies for data centers, considering federal legislation to effectively cancel state and local tax incentives. This move comes as Republicans face backlash over enthusiastically supporting tax breaks for these facilities in Ohio, despite their high cost to taxpayers and low job creation.
Ohio U.S. Senator Bernie Moreno is calling for an end to taxpayer subsidies for data centers, signaling he is considering federal legislation that would effectively negate state or local tax incentives for these facilities. Moreno asserted that data center companies should cease accepting public funds, or states should stop offering them, highlighting that Ohio has already provided billions in tax breaks for such projects.
This initiative arises amid a growing backlash against AI data centers, particularly impacting Republicans who have historically championed tax breaks for their construction. Former Ohio Governor John Kasich granted 40-year tax breaks to tech giants like Google, Meta, and Amazon, a policy continued by his successor, Governor Mike DeWine, despite concerns over the relatively low number of jobs created by these centers. DeWine did pause new incentives in May following a report from Signal Ohio that projected the state's 2025 costs to be significantly higher than initially disclosed to taxpayers. The issue has become a contentious point in the tight U.S. Senate race between Jon Husted, DeWine's former lieutenant governor, and Democrat Sherrod Brown, with the National Republican Senatorial Committee expressing fears that the data center issue could be catastrophic for Husted's campaign and future data center construction.