Amy Acton would put conditions on new Ohio data centers – but not the size of their tax breaks
Democratic governor candidate Amy Acton has proposed a new plan for data centers in Ohio, which includes requiring them to meet conditions on energy costs, union labor, transparency, environmental standards, and siting. Her plan suggests a "conditional moratorium" on new data centers that don't meet these requirements. This contrasts with previous Republican efforts to reduce data center tax exemptions and impose other conditions.
Democratic gubernatorial candidate Amy Acton has unveiled a new plan for data centers in Ohio, proposing a set of state regulatory hurdles for their approval. Announced on Monday, Acton's plan stipulates that new data centers must adhere to conditions regarding energy costs, the use of union labor, transparency, environmental standards, and siting. She emphasized that Ohio is "not up for sale" and data centers failing to meet these conditions would not be welcome in the state. Acton's campaign website further elaborates on these ideas, some of which may necessitate changes to state law.
A key aspect of Acton's proposal is a "conditional moratorium," suggesting that new data centers would be banned by default unless they fulfill the outlined criteria. While her plan discusses "reining in incentives" and allowing the state to claw back funds from developers who don't meet job promises, it notably does not call for a reduction or elimination of the state's lucrative data center tax exemption. This exemption's projected cost is expected to reach $1.6 billion by 2025, significantly higher than initial estimates.
Acton's stance contrasts with previous efforts by Republican House Speaker Matt Huffman and other legislative Republicans, who earlier this summer pushed to halve or eliminate the data center tax exemption through House Bill 646. That bill, which also included conditions on water usage, energy costs, and transparency, stalled in June. Vivek Ramaswamy, Acton's Republican opponent, has also shared thoughts on data centers, advocating for developers to cover their own electricity costs and consider brownfield sites for development, while also stressing the need to expedite permitting for power infrastructure to meet demand.