Ohio producers call for greater transparency in data center development
Data center growth in Ohio has led to concerns from the farming community regarding land and water use, electricity demand, and tax exemptions. The Ohio Farm Bureau's advocacy prompted the Governor to pause new data center tax exemption requests while the legislature studies the issue, highlighting the impact of grassroots efforts.
Ohio is experiencing rapid data center growth, with over 200 facilities, making it the fifth-largest hub in the United States. This expansion, however, presents a "two-edged sword" for rural communities, creating economic opportunities but also significant resource pressures and a lack of transparency. Evan Callicoat from the Ohio Farm Bureau highlighted the concerns of its members across the state.
Key issues raised by the farming community include land consumption, substantial water usage, and the strain on electricity grids and prices. A major point of contention has been the significant sales tax exemptions granted to data centers for construction materials. Initially estimated to be in the tens of millions when created around 2013, these exemptions ballooned to over $2 billion for 2024 and 2025 alone, far exceeding projections.
In response to these concerns, particularly from the Ohio Farm Bureau's grassroots efforts, which saw thousands of members contact their legislators and the governor's office, the Governor decided to pause any new tax exemption requests. This pause allows the Ohio Legislature to further study the issue, marking a significant win for advocacy groups seeking greater transparency and accountability in data center development.